The digital gaming industry in Ireland, like many other gaming sectors across the world, has been on a steady incline in the last decade. In fact, current projections show that this industry’s market value, which stands at $189 billion in 2025, is set to continue rising in the coming years. But what factors are propelling this enviable growth? Let’s find out.

What Lies in the Digital Gaming Industry’s Future?

In any industry, organizations are subject to two forces. The first set of forces relates to their own strengths and weaknesses, and the second set includes factors in the external environments over which the organizations have little to no control. For us to understand the key drivers behind the growth of the digital gaming industry, we have to explore these forces in terms of those that serve as opportunities as well as those that threaten this growth.

Gaming Industry Opportunities

Opportunities in Ireland’s Gaming Industry.

Organizations thrive in environments that favor them. Using the PESTEL approach as our basis, the focus would thus be on the political, economic, social, technological, environmental, and legal factors. So, which of these are pushing the industry to the next level?

  1. Technological Innovations.

    We cannot talk about the digital gaming industry without touching on the emerging technologies that have become part and parcel of this sector. Key among these are:

    • Artificial intelligence (AI). Gaming organizations have integrated AI into their game development to not only personalize the games for different players but also to create new games faster and at more affordable rates. Generative AI has especially been at the forefront of these changes as it helps game developers analyze existing games and come up with fresh concepts and twists based on previous releases, thus ensuring that they always have something new to offer their players.
    • Immersive technology. Players no longer want to passively enjoy the games. Instead, they want to fully experience the game environments. Game developers have met this need through augmented reality and virtual reality technologies, which allow players to interact with elements in the game environments. In this way, the games are more realistic, which increases player engagement and satisfaction.
    • Cloud gaming. In the past, players had to grapple with the need to have sufficient storage space and use specific devices when accessing games. Now, cloud gaming allows them to access the games from anywhere and from any device just by entering their login details online. What’s more, they no longer have to worry about storage as their data is automatically backed up into the cloud.

    Ireland is known for being a tech hub, and its developers currently rank high in AI adoption, not only in data analytics but also in building cloud infrastructure and developing games. Better yet, gaming companies are now enjoying a 32% digital gaming tax credit on their expenses relating to development and production jobs in the country, which has further fueled this adoption.

  2. New Gaming Models.

    Game development companies are increasingly making games much easier to access. For one, they now have subscription options that allow players to access a wide range of games at a monthly fee as opposed to buying one game at a time. These subscriptions also work in favor of the gaming companies as they can enjoy a steady stream of revenue from their growing customer bases. Additionally, game developers are now involving players in game design, such that the gaming community creates the content, as in games like Roblox. The idea is to continuously come up with different experiences rather than having a predictable gameplay. It also helps to note that competitive gaming continues to present opportunities for game developers in the country.

Threats or Challenges

Are There Any Threats or Challenges?

While gaming companies have a promising future, it is important to note that their progress will not be without significant hitches. But which are these barriers?

  • Cyberattacks. As games become more complex, cybercriminals have come up with more sophisticated ways of gaining unauthorized access to the gaming platforms. With such breaches, they can redirect the gaming revenue, which would result in significant financial losses for the gaming companies. For this reason, gaming companies have to continuously invest in more security measures in anticipation of increasing threats.
  • Data regulations. Gaming companies are expanding fast, and with this comes increased access to more players’ data. This increased access has not gone unnoticed by authorities, and they have come up with more data protection laws to keep players safe. Any companies that are found in violation of these laws are subject to lawsuits, penalties, and other hefty consequences.
  • Increased costs. While the use of AI and other technologies has sped up game development and cut back on research and operational costs, gaming companies must still invest a lot of resources in creating a high-quality game. These costs often range in the hundreds of millions.

Therefore, organizations that wish to take advantage of all the opportunities and strengths in the gaming industry must put measures in place to account for these risks. Only then can they mitigate them and continue growing in this impressively lucrative sector.