This report covers Internet of Things application in Gaming Industry, Market overview, Evolution, Market segmentation, Major players, upcoming trends and impact on traditional PC console Market. This is my own work through secondary research

1. Internet of Things in Gaming Industry
Shasanka Sekhar Sahu
shasanka10sahu@gmail.com
1

2. Contents
Topic Page No.
IoT in Gaming Industry - Overview 03
Evolution Value Chain 04
Market Size 05
Market Segmentation and Major Players 06
Key Market Trends 07
Impact on traditional console players 08
2

3. IoT in Gaming Industry - Overview
Internet of Things (IoT) is the new technology revolution where large number of electronic devices i.e sensors,
monitors, cameras etc, stay connected to each other through local and global networks. IoT has created
technological innovation in gaming industry, making it more interactive with use of artificial intelligence, virtual
reality and taking it to next level.
Application Areas
Virtual Reality (VR)
Gaming
Sensors inside VR gear tracks track
head movements, provides with
touch pad to control movements
Tangible User interface
( TUI )
TUI involves use of physical sensors,
objects to create pervasive and
mixed reality games
Sensor Gaming Suits
Provides multi –sensory experience
which includes surround sound,
vibration and self stimulatory
behaviour
Casino Play
Eliminates manual dealer; sensors
fixed on tables capture the
movement.
3

4. Evolution Value Chain of Gaming Industry
1952
1st computer game
Tic-Tac-Toe
1972
Atari - First commercial
Arcade game
1977
Atari 2600 sets the
Home console standard
1985
Nintendo debuts for
American customers
1989
Nintendo unveiled
Portable handheld gaming
device
1995
Sony releases PlayStation
2001
Microsoft releases Xbox
2006
Nintendo Wii
2008
Apple opens App store;
growth of mobile gaming
2014
Oculus Rift
4

5. Market Size – IoT gaming market expected to reach 20B USD by 2020 with 40% CAGR
99.6 B USD
128.6 B USD
19.6 B USD62.3 B USD
5.1 B USD40 B USDYear-2016
Yr - 2020
(Estimated)
6.6% CAGR
Total Gaming Market
Total Available Market Addressable Market Current Share of Market
40%
Online Gaming market
( includes Smartphones, Tablet)
Source: [1] ; [2] ; [3]; [4]
11.72 % CAGR
12.75%
40 % CAGR
5
IoT Gaming Market

6. Market segmentation and Major Players*
Software Providers
Companies creating immersive games which AR, VR games,
Social VR games
playfulCCP Games 51Play AltspaceVR
nDreams
Resolution Games
Syntertainment Owlchemy Labs
Hardware Devices
Display Devices
Oculus VR AntVR
Mojing
Peripherals
Leap Motion Noitom
Virtuix Omni
Development platform
Solution includes development tools, Enablers, Game Engine
Unity High Fidelity RiftCat Retinad VR Intugame Fabric SoftwareNvidia VRWorks
* Major players are considered based on their funding amount as sales figure unavailable
6

7. Key Market Trends
1. Unified Platform
• Major Players like Microsoft, Sony trying to adopt unified OS platform by
which multiple devices like Tablet, TV can interact with each other
seamlessly.
2. Player becoming the
Protagonist
• Augmented reality technology in conjunction with wearables will aid
player to become the protagonist
• Example : Pokemon Go
3. Interacting with Phygital
objects
• Companies like Skylanders, Disney infinity series offers phygital game
objects to exploit the technology of multi –touch input devices like iPad
to create more intricate gaming experience.
• Phygital objects uses NFC technology to communicate
4. Capturing consumer
preferences & interest
• Physical games like Casinos equipped with Cameras and sensors currently
tracking user preference and game interest.
• These data are further analysed to send custom notifications to users.
7

8. Impact of IoT games on Traditional console Players
• Global Game market is increasing at 6.6% CAGR and Console market is also expected to increase at 2.2%
CAGR. [1]
• IoT Gaming market will help in overall growth of gaming market. Traditional console players are integrating IoT
technology (AR. VR technology) to offer superior gaming experience. IoT gaming and Console gaming market
will complement each other for their future growth journey.
• Sony Entertainment introduced head mounted display product ‘Project Morpheus’ for its Play Station console.
Microsoft tying up with Facebook’s Oculus VR and Valve software to provide VR experience.
Source : [1]
8