Where it started as a niche hobby and turned into a multi-billion-dollar global industry, the gaming industry has become a dominant force in the entertainment sector. It is especially the rapid growth of gaming technology, coupled with new design principles and player engagement mechanics that has been driving this evolvement. It has also resulted in the impact of the gaming industry going beyond entertainment and is now also present in sectors such as gambling, education, fitness, and marketing.
What these industries has done it to adopt elements from video games to engage users, encourage repeated usage, and enhance customer satisfaction. The elements being adopted by these industries include random rewards, gamification, and immersive environments.
The rise of random rewards: The gaming industry in online gambling
In many modern video games, loot boxes have become a popular feature, and this is also the most direct crossover from gaming to gambling. Loot boxes are virtual items which players can either purchase or earn, which can contain randomized rewards, including new skins, weapons, or in-game currencies. The basic mechanics of loot boxes have some clear similarities to gambling, where players spend real money without knowing the outcome, with the hope for a rare or valuable item.
The concept of this mechanic has been adopted by the online gambling industry where some non gamstop casinos and slot games have incorporated randomized bonus features mirroring loot boxes. An example is how players can unlock a ‘bonus round’, providing players with a chance to win big rewards. What this example and loot boxes have in common is the psychological principle of variable reward schedules, in which unpredictable outcomes encourage repeated engagement.
A report by the UK Gambling Commission has pointed out that loot boxes blur the line between gaming and gambling, since especially young people playing video games and are used to loot boxes might start adopting gambling-like behavior at an early age.
How gamification is a powerful tool for engagement across various industries
It is not only direct mechanics like loot boxes which have been adopted by various sectors. The broader concept of gamification has been adopted too. Gamification is a term referring to the application of game design elements to non-gaming environments. This can include features such as scoring systems, leaderboards, and progress bars. One sector that has adopted such features is education, where gamification has been used to motivate students by making learning more interactive. Platforms including Kahoot!, Duolingo, and Quizlet have been designed using elements like points, rewards, and times challenges, which keeps the users engaged. Research has also found that a gamified learning environment enhances the level of student engagement and leads to better retention of information.
The fitness industry has also embraced gamification to both improve user experience and drive participation. Apps such as Strava, Fitbit, and Zombies, Run! are using game-like rewards, progress tracking, and community leaderboards. These features are meant to keep users motivated, by making it easier for individuals to stick to a fitness routine. This happens through making workouts more rewarding, and by creating competitive experiences. Another sector that has adopted gamification elements is the marketing sector, which has used gamification to enhance customer engagement and brand loyalty. Companies like Starbucks, Nike, and Sephora have integrated game mechanics into their loyalty programs, including badges, points, and rewards. By doing this, these companies tap into consumers’ desire for achievement and competition, which can help create a deeper emotional connection to customers.
An immersive experience beyond gaming leveraging Virtual and Augmented Reality
Another trend among sectors adopting elements from the gaming industry is the adoption of Virtual Reality (VR) and Augmented Reality (AR) technologies. These technologies were invented and applied by the gaming industry but have since wandered into other sectors as well. What both technologies can do is to provide immersive environments simulating real-world experiences. One sector that has leveraged the possibilities of these technologies is the healthcare sector. VR and AR are being used for medical training, patient rehabilitation, and mental health treatments. An example is how VR systems have been leveraged to allow medical students to practice surgeries in a risk-free environment. VR has also shown promise in treating mental health conditions, including anxiety, PTSD, and phobias, since it helps patients confront their fears in controlled settings.
Another sector that has adopted VR and AR is the retail and real estate sectors, as these technologies can be used to offer virtual try-ons and property tours. Some AR apps allow customers to visualize how furniture or clothing will look before purchasing. Additionally, VR is being used by real estate companies to offer potential buyers an immersive 3D home tour, which makes house-hunting process easier and more accessible.
Concluding remarks
Where technologies and in-game features from the gaming industry have long been confined to only have an entertainment purpose, how it has started to influence a wide range of sectors. With sectors from gambling and fitness to education, healthcare, and marketing leveraging the possibilities made possible by the gaming industry, these sectors are enhancing their content and their consumer experiences. It is expected that these trends will continue to grow and technology continues to evolve and bring more opportunities to the table. It is especially in-game features like loot boxes, gamification, and immersive technologies like VR and AR that is demonstrating how gaming’s influence is wandering on to other sectors.
