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Russia/Tech: entertainment company withdrawal is not game over

No McDonald’s burgers, no Coca-Cola, no Netflix shows. the Businesses go out of business in Russia, young consumers are hit particularly hard. Video social media platform TikTok has blocked new content from being uploaded. Walt Disney and Warner Bros have suspended theatrical releases. Gambling companies could theoretically have an even bigger impact. But her move to suspend sales doesn’t mean a complete exit.

Gaming is one of the fastest growing technology sectors in the country. Russia has a population of 144 million but is a fairly small market for certain technology products. According to analyst firm IDC, smartphone shipments will reach about 35 million units in 2021. That is about 2.5 percent of the global total.

However, it is estimated that almost 42 percent of the population plays video games. Russia was one of the first countries in the world to recognize eSports as a sport. Local developer My.Games pegs the gaming market at $2.2 billion in 2020 — with revenue up more than a third year-over-year. Mobile gaming was the fastest growing segment, up 39 percent year-over-year.

Local companies like My.Games could benefit from the exit of western competitors. Of course, not every company will have the capacity to benefit from this. Russian bank Sberbank entered the gaming market last year with SberGames – part of a broader plan to become a Russian version of Amazon. Sanctions mean the state-owned lender now faces a rapid drop in earnings.

But actions by Western gambling companies will not force Russian players to relinquish their controls. Fourteen days Manufacturer Epic Games has stopped selling new games, but players can still access existing ones. Similar, call of Duty Publisher Activision Blizzard has halted new sales and paused in-game transactions, but not banned players.

The Ukrainian government is asking gaming companies and esports operators to completely ban Russian players. If Russia’s war with Ukraine continues, the sector could be pressured to block access altogether.

Russia/Tech: entertainment company withdrawal is not game over Source link Russia/Tech: entertainment company withdrawal is not game over

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