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Declining Gaming Revenues Bring Middle East Opportunities

The global gaming industry faces plenty of challenges, but the Middle East’s investments have resulted in growth opportunities and regional resilience.

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11 months ago

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declining gaming revenues bring middle east opportunities
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Ask a casual observer about the state of the gaming industry, and they’ll likely tell you that it’s in fine health. After all, this vast landscape of big-studio and indie developers, consoles, and cloud-based services rakes in billions each year.

However, despite headline-grabbing news such as Microsoft’s recent $75 billion acquisition of Activision Blizzard, a closer examination reveals several underlying challenges. Despite initial surges during the pandemic, gaming usage and revenues have declined due to factors like inflation. Business Insider recently reported a 2.3% decrease in US gaming revenue in 2023 compared to the previous year, signaling a shift in consumer behavior that includes reduced gaming hours per week.

Analyst Matthew Ball’s assessment of the industry’s state highlights a concerning trend of layoffs, with a significant increase observed in 2024. Substantial cuts within Microsoft Gaming have impacted approximately 8% of its workforce. Meanwhile, key departures from Blizzard add to the industry’s instability.

While these layoffs have global implications, the Middle East and North Africa (MENA) region presents a unique opportunity amidst the industry’s challenges. With a rapidly growing gaming market and substantial government investments, countries like Saudi Arabia and the UAE are aiming to establish themselves as global hubs.

Also Read: Top 10 Best Video Games Set In The Middle East

Saudi Arabia’s Savvy Games Group, backed by a $38 billion investment from PIF, seeks to bolster the Kingdom’s gaming industry and emerge as a global leader. Similarly, the UAE’s ambitious Dubai Program for 2033 aims to position Dubai among the top 10 cities in the gaming industry by boosting its digital economy and GDP.

These initiatives could offer insulation against the industry’s turbulence while creating growth opportunities for regional gaming companies. By diversifying their economies and investing in long-term development, Middle Eastern countries are demonstrating a strategic approach distinct from the short-term profit-driven motives seen elsewhere in the industry.

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UAE Prepares To Launch Two Satellites: Thuraya-2 And MBZ-SAT

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum chaired the first meeting of the Supreme Space Council yesterday.

Published

5 days ago

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December 17, 2024

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uae prepares to launch two satellites thuraya-2 and mbz-sat

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister of the UAE, chaired the first meeting of the Supreme Space Council in Dubai on December 16, 2024. The session highlighted the UAE’s ambitious space plans and took stock of the sector’s economic progress.

The council emphasized the growing role of private companies in advancing space technologies, noting that their contributions are now equal to that of the public sector. Members also praised initiatives like the Space Economic Zones Programme, which are designed to fuel innovation and investment in the space industry.

Discussing the UAE’s space journey, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum remarked, “The national space sector continues to grow and advance, and we take immense pride in the remarkable achievements we have accomplished over the years”.

Sheikh Hamdan also received updates on two upcoming satellite projects: Thuraya-2 and MBZ-SAT. Thuraya-2, developed by Space42, is slated for launch this December. Meanwhile, the MBZ-SAT, created by the Mohammed Bin Rashid Space Centre (MBRSC), will soon follow. MBRSC, a major driver of the UAE National Space Programme, continues to lead the nation’s space-related developments.

Space42 took the opportunity to showcase its advancements, including ongoing collaborations between public and private entities. The company also outlined strategies to promote innovation, boost revenue streams, and create new opportunities for growth in the sector.

Also Read: IBM Opens New Doha Office To Support Qatar’s Digital Growth

The UAE’s current projects build on a growing legacy of space exploration. Back in 2020, the nation made headlines with its Mars mission, successfully sending a probe into the planet’s orbit in 2021. This mission, which is now in its second phase as of June 2024, has been collecting critical data to develop a comprehensive diurnal image of Mars.

The UAE also ventured into lunar exploration with an unmanned mission aimed at studying untouched regions of the Moon’s surface. While the probe ultimately crashed during its landing attempt after communication was lost seconds before touchdown, the effort represented a significant step in the country’s exploration ambitions.

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