THE FUTURE OF

GAMING WHAT BRANDS NEED TO KNOW ABOUT GAMING AND VIRTUAL GOODS

BROADCASTS FROM TOMORROW

OurResearchStudy
Dazed Studio, in collaboration with Squared Circles (a venture studio which invests in,
builds and accelerates sustainable businesses that promise a better future) conducted
research to understand ‘the gamer’ and opportunities within the virtual goods
landscape. Our study consisted of;

Desk research Audience One-on-one Expert

Survey interviews interviews

We conducted desk research over We surveyed a pool of 4, 050 US We conducted 17 interviews with We interviewed 4 global experts.
the course of 6 weeks. and UK consumers, 80% of whom our audience persona types
are gamers and 20% of whom are through Discord.
non-gamers.
Context
Whygaming?
 “Everyone is becoming a gamer, even
Whynow?
Gaming is predicted to reach over 2.8
billion people globally in 2021 and
gamers are predicted to generate over
$189.3 billion in revenue.
(Source: The Drum, 2021)
if they don’t self-describe as gamers.
There is now less of a stigma to playing
games, and it’s no longer seen as a
‘guilty pleasure.”
- Casey Chafkin, co-founder of Skillz
(Source: SCMP, 2021)
The global pandemic has accelerated
growth within this market, with 39% of US
gamers spending more money on
video games since the pandemic
began (source: Nielsen, 2020).
In December 2020, Sony broke record
with the launch of the PS5 "achieved the
highest launch month unit and dollar sales
for a video game hardware platform in U.S.
history.” (Source: Gamesradar)
Gaming is no longer relegated to the
basement. I like to say that it’s had its
coming out of the basement moment.
Chris Marotta, Design Lead, UsTwo
Understanding‘TheGamer’

We’ve learned that a huge growth

market lies outside of those who
identify as ‘gamers’, with 98% of the
gaming audience sitting outside of
those who spend (source:
Gamesindustry.biz, 2015). We’ve
also learned that there is a level of ‘More than 50% of people
shame and embarrassment surveyed who play games
among some people when it don’t consider themselves to
comes to publicly identifying as a be a gamer.’
‘gamer’ Activision Blizzard Media, The Drum study 2021

(Source: Chris Marotta interview, Reddit forums)

The success of the free-to-play
model has opened up a world of new
opportunities around virtual goods.
The global virtual goods market value
is estimated to reach 189.76 billion
USD by 2025
(Source: Adroit Market Research, 2019)
Gamingindustryrevenuein2019

$64.4B Mobile Gaming

$29.6B PC Gaming

$15.4B Console Gaming

$6.5B Game-related videos

$6.3B VR and AR gaming

Whatdidwe
uncover?
Whyarepeoplegaming?
Escapism:
41% of gamers say they play The top thing gamers want
video games to disconnect
from real life.
Social Shared Meeting a goal or
Relaxation:
connection: moments: achievement:
The biggest influence or
The top digital feature gamers inspiration when it comes 40% of gamers say they
to spend their money on would be interested in buying to game purchasing among play video games to have
right now is friends and would help them destress, gamers is word-of-mouth the feeling of mastering or
family members (52%). calm and relax (30%). conversation with friends finishing a game.
(33%).
Source: Dazed/Squared Circles study, 2020
Whyarepeoplespendingmoneyin-game?
17% Expansion packs
16% Bundle offer packs
15% Virtual gaming currency
11% Rare objects, tools or weapons
11% Gift items to send to others
10.5% Skins or customisable avatars
10% Character or player cards
9.5% Subscription to exclusive content
8% Surprise loot boxes
7% Microtransations
6% Tickets to a virtual event
Source: Dazed/Squared Circles study, 2020
 What'sthebiggest
barriertospend?

The expense of in-game virtual

goods was the main reason that
has prevented gamers from
purchasing additional goods (42%)
The next top barriers for purchasing are: the limited benefits it
brings to overall gameplay (12.8%), the limited value it brings to
real-life (11.5%), too much choice of purchases (8.5%).

Source: Dazed/Squared Circles study, 2020

 What'sinfluencing

purchasedecisions?

Purchasing decisions are

influenced by gamers’ own
judgement or through close friends.
Social media and influencers are
voted the least influential.
The biggest influences or inspirations in game purchasing for
gamers are: word-of-mouth through friends (32.7%) and testing
out products yourself (32.3%).
The least voted influences or inspirations in game purchasing for
gamers were influencers with 20k+ followers (7.8%).

Source: Dazed/Squared Circles study, 2020

Whotheyadmireandfollow
Rina Sawayama
David Byrne Macie Jay
Musician
British-American Professional gamer,
singer, songwriter, Twitch streamer and
musician, record YouTuber.
producer, artist, actor,
writer, music theorist
and filmmaker.
Dorian Electra
A non-binary musician who
re-appropriates ‘dude-bro’
gaming aesthetics and
subverts toxic masculinity.
Ophelia Yung Lean
Make-up artist, Musician.
Yeule
fashion designer, David Attenborough
Musician and
model and winner of Broadcaster and natural
glitch princess.
Glow Up (season 2) historian.
on BBC Three.

Greta Thunberg
Climate activist and
author. Iambratwurst JackFrags
Tattoo artist and Game commentary and
creative director. Hannah Diamond
FPS gamer.
Musician.

Source: Dazed/Squared Circles study, 2020

Gaminghasincredibleinfluence

52% of committed gamers The more time the audience

prefer their life online. Only 26% spend gaming the more they
say they prefer their life offline. prefer their life online to offline.
The committed gamer’s identity is most influenced by
video games both online and offline.

Source: Dazed/Squared Circles study, 2020

OurPersonas
The 4,050 respondents we surveyed
selected one of these titles to identify
themselves based on how many hours of £100-1,000+ Committed gamer 9%
gaming they played per week.
per year 8+ hours per week

£50-500 Intermediate gamer 36%

per year 4-8 hours per week

Time spent in-game

e
gam
n -
t i
pen
£0-200 t s Casual gamer 52%
n
per year ou 2-4 hours per week
Am

£0-50 Potential gamer 3%

per year 1-2 hours per week
OurPersonas

Virtually curious Mundane gamer Joyful escapist

Potential gamer Casual gamer Casuel gamer or Intermediate gamer

Immersive explorer Thrill seeker E-girl/E-boy

Intermediate gamer Committed gamer Committed or intermediate gamer
Audiencepainpoints
More honesty, genuine game-play enhancement and less overt product pushing
Virtually Curious
“Values that try to improve the current state of the
world: sustainability, diversity, equality, climate.
Brands don’t necessarily need to act politically
but stand for values and act on them.”
@severin07
Immersive Explorer
“I like DIY, smaller-feeling brands, I suppose its
authenticity I’m looking for. HUF, Stereo Skateboards,
RipNDip spring to mind.” @tcity
Mundane Gamer Joyful Escapist
“Transparency is a big thing that make brands more
“I think every brand now ‘takes a stand’ and most of it is
desirable for me. Within video games, many of the big
pretty useless. I love how brands like Ben & Jerry’s
brands don’t push this side of their business.”
have operated during BLM; by being vocal and clear
@lostinnature
on their standpoint.” @davidm
Thrill Seeker E-girl/E-boy
“I’m most drawn to brands that are relatively local
and often the result of a person’s/collective’s
“For favourite brands: the brands Muji and Cos. The
creative vision. I’m into Claire Barrow’s Xtreme
style and design of their products is something that I
Sports and Drain Gang for example. Two
really like because of their simplicity.” @bluepizza17
examples of brands very much led by the creative
vision of a small group of artists who make what
they want.” @phonewifey
We discovered that digital
experiences interest gamers
more than virtual gaming
goods available today.
Only 13% of gamers we surveyed said they have bought virtual currency, which
was voted the top ‘virtual good’, but 30% of gamers said they would be interested
in purchasing digital experiences (source: Dazed/Squared Circles study, 2020).
What’snext?
Overview
New gaming
intersections ‘social’ connections
Music | Fitness | Film
Fashion | E-commerce | Events
Immersive escapism
and joy self-development
Comfort through
nostalgia and fun
Hyper-real | Social VR | AR
Meaningful More diversity,
representation and
purpose
Broader choice
Social platforms | Gifting
Online identity reflecting
Social sharing |
offline personality
Meeting new people
Creative exploration
Connecting with friends
Diverse representation
Wellness and Seamless brand
experiences
Advertising
Learning | Wellness
Product placement
Anti-toxicity
Collaborations
Purpose-driven initiatives
and products Real world > online world
 Newgaming
intersections

We’ve only just scratched the

surface of what is possible. I’m
surprised that it’s taken the
fashion industry so long to catch
onto the idea of virtual fashion and
experiences.
Harriet Davey, digital artist and avatar creator
Gamingtechnologyasthefutureofentertainment
As the gaming audience grows and our lives pivot further towards digital, it’s no wonder that other industries are looking to gaming as a way to engage
with their audiences. Game designers have an intrinsic understanding of the user and how to create powerful stories and experiences.

MUSIC & EXPERIENCES CONTENT PRODUCTION FASHION & VIRTUAL GOODS

With Travis Scott’s Fortnite debut, Lil Nas x Roblox and
Post Malone’s virtual concert celebrating Pokemon’s 25th
anniversary last week it seems there is more to be
explored in the world of virtual concerts and experiences.
Disney’s The Mandalorian series used Epic Games engine to
create a digital set which could be seen on camera while
shooting the scene, which usually would’ve been added later.
The free to use game software has opened up a world of
opportunity for content production.
As gaming is becoming a huge part of pop culture, fashion is
attempting to get a piece of the prize. In August 2020, Klarna
launched a virtual pop-up featuring fashion favourites from
Micah “Noodles” Mahinay, recreated by gaming fashion
designer, Kara Chung. Pieces included  Marine Serre crescent
moon-print jersey top from Farfetch and Pleats Please Issey
Miyake asymmetrical tank. There is even a resell market for
virtual goods.
 Socialgamingand
communityareeven
moreimportant

I think social experiences are the

future of VR. The most meaningful
experience I’ve had in VR was on a
game called Rec Room, and it’s
since become even more popular.
It’s a social space for people to
hang out in.
Chris Marotta, design lead, Ustwo
Community and connection within gaming is a driving motivation for many, something that’s reflected in new games but also the growing
engagement with existing games like esports (e.g. Formula One and NASCAR’s virtual races).

CONNECTION DURING SOCIAL GAMING RISE OF CONNECTED

ISOLATION PLATFORMS SOCIAL GAMES
The pandemic “really opened a lot of people’s eyes – “The success of Among Us is that it empowers people to
“I find Twitch to be quite authentic during streams and it’s
even non-gamers – to what games can do to bring connect in fun ways. This distinguishes the modern genre
meaningful when you feel part of a streamers community… If
people together,” says Daniel Luu, the founder of of “social games” from the Facebook and mobile apps
there was a way to connect with other people to play, then I would
Nookazon. Last year even WHO declared that that we used to give that designation.” (Source:
try it out.”
games were an important part of social interaction. Venturebeat, 2020)
@lostinnature Joyful Escapist
(Source: BBC, 2020)
Morediversity,
representationand
purposeingaming

There’s a huge market that’s

been ignored by the games
industry for a long time. Games
will increasingly be designed
with more universal appeal. The
biggest barrier is within the
community because there can
be a lot of hostility towards, for
example, female gamers.
Raphael Pimlott Technical artist, Mediatonic
The notorious #GamerGate controversy and more recent sexual misconduct scandal at Ubisoft are “I would like to see more diversity in gaming
to be honest – give me an Asian female
just two examples of sexism and toxic behaviour. “It has become undeniable that women working in protagonist that’s as badass as Lara Croft!”
video games are routinely abused and undermined in the workplace as well as by online trolls,” @brownbearmojo Joyful Escapist
explains Keza MacDonald, video games editor at The Guardian.

A CALL FOR MORE BROADER CHARACTER PURPOSEFUL

WORKFORCE DIVERSITY REPRESENTATION ACTION
The Sims 4 offers a huge collection of improved skin tones, Altruism and sustainability are rising topics when it
74% of workers in the industry identify as cis males, 61%
hairstyles and make-up options to enable players to develop comes to the gaming world. More hardcore gaming
are white and 81% are heterosexual. Just 1% of survey
more diverse characters. Meanwhile CyberPunk 2077 also personas are around twice as likely as the global
respondents identified as Black while only 4% identified
offers a diverse range of skins and avatars, and also an average to use social media to promote and support
as Latinx. Less than one-quarter of the industry
option to play a gender-fluid, trans or non-binary character. charitable causes (GlobalWebIndex). Video game,
identified as female while 5% identified as trans or non-
That said, there is still a long way to go. Sky: Children of Light launched a fundraising
binary (Source IGDA 2018). This is changing but there’s
campaign making millions of dollars via in-game
still a long way to go.
virtual goods to support Covid relief.
Immersive
escapismandjoy

I think we’re going to see more

and more games as services as
we see more of these big,
immersive worlds where people
spend more and more time.
Chris Marotta, design lead, Ustwo
Morefantasy,moreescapism,morefun
When examining some the biggest video game success stories of the year so far, we can see the importance of play, naivety and optimism in gaming
narratives. The role of technology within gaming in enhancing the game experience and capabilities will also be huge.

CHILDLIKE NAIVITY HYPERREALITY WORLD BUILDING

Sales of virtual reality goggles have risen by 350% as those Last year, Minecraft’s Build the Earth’ project, which aims to
Animal Crossing: New Horizons sold more digital units in
trapped at home seek a safe way to escape from lockdown build recreate the Earth in the game at a 1:1 scale, has gained
the first month after its release than any other video game
(The Times, 2021) and a report from Research and Markets huge traction, with more than 100,000 people getting involved.
in history (source: BBC, 2020). Fall Guys, created by indie
suggests that immersive gaming is 20 times more enjoyable World building games continue to be extremely popular,
game company Mediatonic, is another success story,
than more traditional versions. allowing for creativity and control.
accruing an incredible 500,000+ views on Twitch and
1.5m players in its first 24 hours (source: TwitchMetrics).
Theriseof
wellnessand
self-development
The top digital feature gamers
would be interested in buying
would help them to destress,
feel calm and relax.
(Source: Dazed/Squared Circles study, 2020)
 “A huge turn-off in a lot of games for me is fast-paced playing or
There is an immense amount of discourse in the media about the negative the sense of frustration you get. If I could play a game that could
implications and effects of gaming on mental health, but we are seeing signals of better attune my focus and even my anxiety, that would be
awesome.”
a growing dialogue about its positive potential and impact on wellbeing. @tinytori Mundane Gamer

MEDATITIVE GAMING EDUCATION OPEN SOURCE GAMING

People are increasingly turning to digital tools and games
as a coping mechanism and a touchpoint for self-care,
learning and education. #SelfCare, created by Brie Code’s
company TRU LUV is an app that provides a calm space
to escape within your phone. Brand director Eve Thomas
says: “Social media, gambling, games – they all follow a
design card of rising tension so that the stress response is
triggered.”
It’s been proven that the application of video games in
education increases student motivation, improves several
types of key skills – social and intellectual, reflexes and
concentration (M Suznjevic - 2020). There are a growing
number of games that can teach you specific skills for
example how to code, learn rocket science and how to fly a
plane (CodeMonkey, Kerbal Space Program, Flight
Simulator).
Open-source and democratised platforms such as digital
software engine Blender, the game-creation system Dreams
and global platform Roblox have revolutionised the world of
game design and creation by opening up tools to audiences
like never before.
Seamlessbrand
experiences

The most popular form of

monetisation is advertising.
Games where you have to watch
an ad in order to obtain more
lives perform really well, and
most people are willing to watch
an ad to continue playing, but it’s
not the most desirable or
immersive experience.
Chris Marotta, design lead, ustwo
 Brands need to carefully consider the need states and behaviours of gamers within the in-game experience. Trend forecaster Thomas
Baekdal wrote a piece positing that in-app or in-game purchases are destroying the industry. “Playing a game means that you have fun. It
doesn’t mean that you sit around and wait for the game to annoy you for so long that you decide to pay credits to speed it up.”

AUTHENTIC PARTNERSHIP ENHANCE THE EXPERIENCE BE BOLD & EXPERIMENT

BUMBLE X GEN.G MAC IRL + URL BALENCIAGA X AFTERWORLD

Mac have collaborated with the Sims 4 for a virtual makeup Balenciaga X Afterworld:Age of Tomorrow set a record for the
Dating app Bumble teamed up with esports brand
product and the game Tencent for a physical product “largest volumetric video project ever undertaken.” Credit goes
Gen.G to create Team Bumble, an all-female esports
collection which sold out immediately. Mac have chosen to Demna Gvasalia and the team for the sheer attention to
team that competes in Fortnite. The Getty Museum
partners to match their own brand values; celebrating self detail and investment in making the experience believable and
also teamed up with Animal Crossing to make all of its
expression, diversity and bold creativity and it works. exciting.
famous art pieces available in the game.
Takeaways
REMOVE
PRECONCEPTIONS
There’s more the learn about the
‘gamer’ audience and we need to
remove preconceptions.
GAMING TECH IS
POWERFUL
Gaming technology and ways of
thinking are relevant and important
to many industries outside of
gaming. It’s about building powerful
and connected human experiences.
DON'T FORGET
THE USER
EXPERIENCE
As a brand think carefully about
how best to integrate - authenticity
is key and create experiences that
show you understand the audience.
PARTNER WITH
PURPOSE
Think about partnerships that make
the most sense for your brand and
audience, whether that’s virtual or
real world.
How can you put
this into action?
DazedFutureStudio The intersection of Art Fashion Technology Youth Culture

This year marks the launch of Dazed Future

Studio, the pioneering digital arts arm of
Dazed Studio, connecting brands to the
intersection of next-gen creativity, technology
and youth culture.

Utilising a combination of strategy and

creative expertise, we deliver interactive,
technology-driven experiences on the cutting-
edge of art and commerce

Click here to read our comprehensive report on the future of youth culture: 

The Era Of Monomass, by Dazed Media
We’reexpertsincreatinginnovative

andimpactfuldigitalmoments

A 360 Music Launch Moment Product Launch Campaign AI Algorithm Activation London’s largest 

AR art exhibition
Bjork The Gate Nike 720 Kylie Jenner

Dazed Beauty Unreal City
Ourcapabilities
Animation & Virtual World Building

—CGI, generative and real time powered by gaming engines,
utilising the many different windows into these worlds, from mobile
and PC, to consoles and headsets.

Immersive XR 

—VR, AR and Mixed Reality, with volumetrically captured
‘holograms’ and advanced face and body tracking.

Live, Virtual/Online Social

DazedFutureStudio
—Integrating live into virtual / virtual into live (e.g. concerts, fashion The intersection of Art Fashion Technology Youth Culture
shows, exhibitions, cultural events) across multiple platforms.

Skins and Digital Clothing/Beauty
—E.g. dressing your Avatar, digital make up, algorithmic beauty
and virtual couture.

Bringing e-commerce and social media together 

—with virtual worlds and contactless technologies
Thanksforjoining