With about 2.5 billion players worldwide and sales of more than $150 billion in 2019, the gaming business, as a fast-growing segment of the entertainment industry, greatly outperforms the historically successful film and music industries combined. New technology, widespread smartphone usage, and worldwide hyper-connectivity (internet growth) all have an impact on the industry’s potential, allowing for the development of new and/or hybrid business models.
Many nations throughout the globe recognised the multifarious importance of this industry’s growth and gave different financial and nonfinancial incentives in the hope of multiplying profits. For example, in India, Garena has secured immense popularity as they have a user base of overwhelming 80 million gamers. Many claim that among the various reasons that are responsible behind Garena’s success, giving away redeem code is one of them. It is popularly known as the FF Redeem Codes.
Based on a comparative analysis of relevant countries and a survey conducted in Serbia, this paper confirms the multifaceted potential of the Serbian gaming industry and recommends to economic policymakers that they support the development of this rapidly growing industry by providing nonfinancial and then minimal financial incentives.
The gaming sector, like many others, has seen a surge of innovations, disruptions, and new business models as a result of the Fourth Industrial Revolution and new technology.
Hyperconnectivity, new technologies, and the proliferation of smartphones linked the whole globe, while the gaming business “caught” more than two billion players and had exceptional growth, with the present trends expected to continue. In keeping with the reverse razor-and-blade paradigm, Apple committed $500 million in its game subscription service Apple Arcade, while Google established Stadia, a cloud gaming service, as a competitive challenge.
Given the amount of users and projections for future development in the gaming business, it’s no surprise that retail behemoths like Amazon and Walmart have entered the fray. We may now anticipate new business models, innovations, the use of artificial intelligence and other technologies, as well as a gaming “breakthrough” in other areas where “game” and simulation play a significant role, such as education, health care, and the like. Many nations throughout the globe recognise the significance of the gaming sector and promote its growth by offering both financial and non-financial incentives in the hope of multiplying profits in a variety of economic and social areas.
The fundamental issue that arises here is how and if Serbian economic policymakers should promote the growth of this new and rising sector, given to its strong indigenous development and potential.
The 2019 study featured statistics on the Serbian startup ecosystem, including startups in Belgrade and Novi Sad, for the first time, and startups were classed as being in the first stage of development, that is, activation stage. The activation stage is distinguished by limited startup experience and minimal startup production. Startup Genome’s proposal is based on its experience monitoring the growth and development of numerous ecosystems across the world: it is important to expand the number of companies and chances for early-stage investment.
The research also emphasises the need of focusing emphasis on one or two startup subsectors that may be created utilising existing local strengths and possibilities, as well as developing specific support programmes for chosen subsectors. The research identifies two significant Serbian startup subsectors: Blockchain and Gaming. As for the ecosystem’s assets, it highlights the availability of inexpensive high-quality personnel.