How Generation Z Has Taken the Lead in the Video Game Industry A new era of gaming is underway, with those born in the late-'90s looking to take the torch from previous generations.

By Anmol Dhalla

Opinions expressed by Entrepreneur contributors are their own.

Anyone born after 1996 belongs to Generation Z, a diverse cohort that may well become the most educated generation to date. They are digital natives who communicate primarily through social media and texts, and they spend much more time on the internet compared to previous generations. When it comes to this time online, Gen-Zers are arguably more tech-savvy and thus have higher standards.

Starting with the commercial birth of gaming back in the 1950s, the industry has bloomed to become one of the most profitable sectors in entertainment. Over the past few years, it has been thoroughly revolutionized. some 53% of households in the U.S. own a gaming console, and 30% plan to purchase one over the next 12 months. Internet services have become easily accessible, and computer processors have significantly evolved, providing excellent speed for more demanding games.

Related: Stop Selling to Gen Z

Many game developers are focusing on building new games around local traditions, culture and folklore to attract this new generation. Gen Z wants to create a sense of belonging. They want to connect with like-minded people across the globe, and realize that being a gamer is a great way to socialize. Plus, the most recognized gamers also earn revenue through live streams on YouTube and Twitch.

Gen Z has helped with the evolution of competitive gaming, better known as esports. The most popular titles include fighting games and games that feature real-time strategy, first-person shooters and multiplayer battle (e.g. League of Legends, Call of Duty, FIFA and Fortnite, just to mention a few).

Related: Turn Your Gaming Passion To Profession With E-Sports

Developers want to incentivize the gaming passion that's present with Gen Z and keep it engaged with their platforms. They help build communities and generate revenue while doing what this generation loves the most. Gen Z wants to learn and innovate — they are ready to adapt and change and also value creativity. The gaming industry has pivoted to satisfy these interests.

The growth in technologies like 3D graphics, improved AI and VR has led to the further development of growth within the video game industry. With these innovations, Gen Z players get more realistic simulations and can connect to other players in a better way. The industry's future will depend on the continued creation of unique experiences and growth within the aforementioned categories for sustained success with Gen Z. As things stand in 2022, the future is bright for the continued expansion of the industry, with Gen Z leading the way.

Anmol Dhalla

CEO of Genzup

Anmol Dhalla is the CEO of Genzup, North America’s Generation Z consulting firm that helps businesses better understand and cater to their younger demographic.

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