A techUK report Contents Introduction Future Gaming and Esports Trends Recommendations for Government07 Turning Trends into Leadership09 Trend 1: Enhanced Gameplay and Personalisation Trend 3: More Immersive Experiences Trend 5: Casual Gaming32 Trend 6: Ownership and the Web3 Economy38 Conclusion Introduction The technologies that underpin gaming and Esports are transforming these industries before our very eyes. ArtificialIntelligence (AI) is enabling players to customise their gaming experience like never before, immersive technologies likeAugmented and Virtual Reality (AR & VR) are revolutionising how fans participate in Esports events and paving the way for From truly immersive virtual worlds to AI-driven gaming analytics,the UK is leading on the development and application of many of of VR technologies to enhance the skillsets of surgeons and treat However, future leadership is not inevitable. The technologiesunderpinning the gaming and Esports sectors of today will be different Notable successes include the development of the ZX Spectrum homecomputer, creation of global hit video games such as Grand Theft Autoand Lara Croft: Tomb Raider, and introduction of the Esports BTEC The potential reward is immense. The UK is also leading on the application of these technologiesacross non-game sectors. Notable examples of such cross-industryinnovation ‘spillovers’ include the use of game engines to create state- The global gaming industry generatesmore revenue than movies (i.e. boxoffice sales) and music combined,3achieving a valuation of $184 billionin 2022, while the number of gamersis expected to hit 3.8 billion by 2026.4In the UK, the video games industrycontributes over £6 billion to theeconomy and supports 76,000 jobs The UK’s technology sector will be crucial to driving these trends andtranslating them into economic growth. As outlined intechUK’sGrowth Plan,the tech sector’s Gross Value Add contribution to the gaming cluster and featuring local gaming studios, Digital Catapult,DCMS and regional organisations, exploring what more the UKshould do to incentivise investment in the key technologies •Panel discussions on immersive and metaverse gaming, thegaming industry of the future, and Esports to inform members ofthe latest technologies, trends and business opportunities•Technology demos and networking sessions to showcase how This report sets out eight tech trends set to shape thegaming and Esports sectors of the future and, throughadvice for businesses and six recommendations for The content of this report has been informed by a six-month ‘sprintcampaign’ – which ran from January to July 2024 - in which techUK’sTechnology & Innovation programme convened many of our 1100+member organisations, along with Government, academia and wider There are no cheat codes for UKleadership in the gaming and Esportstechnologies of the future. The trendsand recommendations set out in •A workshop to facilitate coordination between gaming studios,network providers, and Government around unscheduled gameupdates causing unpredictable network peaks Future Gaming & Esports Trends Enhanced Gameplayand Personalisation More ImmersiveExperiences More Persistent andConnected Environments AI-Driven ContentCreation AI will further enhancegameplay by shapingcharacters and worlds inresponse to (or in anticipation AI will increase thesophistication of gamingcontent, making experiencesmore engaging and Players are increasinglycoming together on metaversegaming platforms to participate ina wide range of virtual experiences. The gaming environment willincreasingly become three-dimensional and multi-sensory, CasualGaming Social Gaming& Esports Ownership and theWeb3 Economy Enhanced Broadcast& Viewing Technologies Significant improvements inmobile, cloud, semiconductor,and Internet technologiesmean that gaming is now Gaming experiences andEsports events are becomingincreasingly social activitiesas technologies such as AI, Web3 technologies are setto transform the gamingand Esports experienceby enabling players, Gaming will become easierand more engaging to watch Recommendations for Government Recommendation 1: Ensure gaming is prioritised as a sub-sector within the new modern Industrial Strategy This will drive the creation of an ambitious and targeted sector plan that is designed in partnership with industry and intended to address barriers to growth.Such barriers include access to finance, investment, skills development, training, and business resilience, all of which were identified during techUK’s gaming Recommendation 2: Create a Future Gaming & Esports Strategy to set the foundations for long-term UK leadership This should improve the UK’s understanding regarding the potential of these sectors, increase support for the wider gaming ecosystem, position the UK asa global pioneer, and ensure a coordinated and long-term approach to the strategy and investment necessary for UK leadership on the