Gaming to drive huge revenue for UK technology industry

31% of survey respondents believe that by 2020, gaming will be contributing 16-30% of the overall revenue of the UK technology industry.

  • Friday, 25th July 2014 Posted 10 years ago in by Phil Alsop

INTERXION HOLDING NV (NYSE: INXN) announces research into the future of online gaming and the revenue opportunity it could contribute to the overall UK technology industry. Almost a third (31%) of UK gaming experts believe that the industry will deliver between 16-30% revenue to the wider UK technology ecosystem by 2020. Additionally, an optimistic 15% of gamers believe the gaming industry could constitute more than 50% of the already burgeoning tech space.


No longer a playground exclusively for kids, ‘filmification’ (cinematic games that look like films rather than traditional games) has brought mass appeal across a wider demographic. Gaming has become a more adult and sophisticated business. What’s more, the proliferation of mobile and tablet devices has enabled commuters to catch the gaming bug like never before – there are currently 20 million mobile gamers in the UK alone.


But with this new found popularity comes increased expectation and demand. And in today’s always-on world, speed and connectivity are paramount. Without the right infrastructure in place to deliver a seamless, glitch-less service wherever the end-user may be, the industry won’t be able to take advantage of the potential revenue opportunity that gamers believe it could achieve.


The research found that:
· Time is of the essence: 33% of online gamers are only willing to wait one minute for an online game to recover from a glitch, update or crash – regardless of the platform being used (PC, laptop, mobile, console or tablet).
· Mobile equals impatient: Gamers using mobile devices to get their latest fix were the most impatient of all survey respondents - 15% stated they weren’t willing to wait at all for a game to reboot, and would turn off the game if it had issues. On the contrary, PC users were more accepting of game glitches and updates – 18% stated they would wait indefinitely for their game to come back online, indicating a stark difference in patience between mobile and PC users and the performance expectations associated with different platforms.
· Virtual reality set to make an impression: When asked which development would have the biggest impact on the future of gaming, 28% of respondents said virtual reality would be the development to watch, closely followed by speed requirements (27%) being demanded by players
· Cloud is the future: UK gamers expect to see the cloud (e.g. all devices / games in sync across platforms) play a more prominent role in the future; two thirds of UK adults believe this will be a drastic area of change when it comes to the future of gaming innovation. Consoles and hard copy discs are expected to become obsolete for 41% of those interviewed, while 25% believe there will be a larger move towards a Netflix subscription-based model in terms of purchasing games.
Speed and connectivity move gaming to the next level


“The world of gaming has transformed dramatically with incredible growth in online gaming. Nowadays, consumers can play online games on any device, with anyone in the world. What’s more, with the latest innovations, such as Oculus Rift and virtual reality, holding much promise for the future of the industry, the potential revenue opportunity for platform and gaming providers is there for the taking,” commented Julian Wheeler, Strategy & Marketing Director at Interxion.”


“But the revenue opportunity won’t be realised without acknowledging the importance of a good user experience for today’s gamers. Looking at our research, it’s clearly speed and connectivity that will make or break this. From the initial download of a game to the very last battle, consumers expect to be able to seamlessly move from level to level without a hiccup. While skill or patience might prevent them from beating the big boss or notching up an impressive score, they dislike nothing more than being met with a buffering icon or frozen screen at a crucial moment. By harnessing the best infrastructure and data centre technologies, gaming providers can ensure they both meet consumer demand and provide an experience that will make gamers persist with that tough level rather than deleting a slow, unresponsive game in frustration.”