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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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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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Max Fashion Brings AI Virtual Try-Ons To Gulf Online Shoppers

Landmark Group’s value fashion brand is using Google Cloud’s generative AI to tackle the returns problem that has dogged ecommerce since its beginning.

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max fashion brings ai virtual try-ons to gulf online shoppers

Buying clothes online has always involved a gamble. A garment that looks right on a model may hang differently on the person ordering it, and the result is a cycle of returns that costs retailers money and customers patience. Max Fashion, part of Dubai-based Landmark Group, is betting that generative AI can improve the experience.

The brand has launched what it describes as one of the region’s first virtual try-on experiences, built on Google Cloud’s Virtual Try-On API and generative AI vision models delivered through the Gemini Enterprise platform. Starting in the UAE, shoppers browsing Max’s digital platforms can see realistic previews of how garments drape, fit and move across different body types before committing to a purchase.

google cloud max fashion partnership

For many online shoppers, uncertainty is the single biggest barrier between scrolling and buying. “It helps address real purchase barriers, particularly around fit and confidence, while allowing us to create a richer and more engaging shopping journey,” explained Hani Weiss, chief executive officer of Max Fashion, who framed the rollout as part of the brand’s ambition to make fashion more accessible.

Bala Subramaniam, senior vice president and head of omnichannel at Max, seemed even more enthusiastic about the technology: “For the first time, a customer browsing on their phone has the same confidence as one standing in our fitting room”.

Also Read: Instagram Now Lets You Tune Its Algorithm, But There’s One Big Catch

Whether AI previews can genuinely match a fitting room remains to be proven at scale. The technology’s value will depend on how accurately it renders fabric and fit across the full range of bodies that shop at a value fashion brand, and on whether shoppers trust what they see enough to change their behavior.

For Google Cloud, the deployment is also a statement about where regional retail is heading. “AI-driven personalization is no longer a luxury, it is a core business imperative for forward-thinking retailers,” says Ziad Jammal, general manager for Google Cloud UAE, Levant and North Africa. If the returns data eventually backs that up, the rest of the region’s retailers will be watching closely.

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