Predictions for 2023: Life Comes at You Fast

The 2023 outlook for the global video games and technology sectors emphasizes a period of rapid transformation driven by the intersection of gaming, music, and emerging technologies. With the video game market valued at approximately $200 billion, the industry is increasingly serving as a foundational social platform for other entertainment categories. Key data points highlight this trend, such as the 16 million viewers for Blackpink’s virtual concert in PUBG and the four-fold increase in streaming for the game Sky: Children of Light following a performance by the artist AURORA.

The analysis predicts significant shifts in corporate strategy and labor relations within North America and global markets. A primary thesis suggests that legacy entertainment firms like Disney will likely acquire devalued blockchain assets to integrate digital collectibles and loyalty programs into their theme park and media ecosystems. Simultaneously, the industry is reaching a turning point in labor, evidenced by the successful unionization of 300 Microsoft/ZeniMax employees. This movement is expected to expand across the 429,000 industry professionals in North America, leading to stricter operational boundaries in game development.

Technological and economic challenges define the near-term horizon. While generative AI is poised to offer massive time savings and more immersive open-world environments, it faces looming legal hurdles regarding copyright and ethical concerns over data training. Furthermore, the esports sector is entering a difficult phase characterized by a 37 percent year-over-year decline in major prize pools and cratering stock prices for public esports firms. Despite these headwinds, the broader industry remains resilient, with Steam reaching record concurrent user peaks and major acquisitions, such as Microsoft’s purchase of Activision Blizzard, expected to finalize and drive further consolidation.