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The video game industry has long had a reputation for producing high-quality, high-definition video content, but there is little reason to believe that that reputation is changing anytime soon.
That’s because video game producers, including Disney, Pixar and Warner Bros., are now producing video content that can be downloaded and played on a mobile device or desktop computer.
And if the industry is anything like the movie industry, there’s plenty of room for growth.
“We can create movies for the mobile platform,” said Steven Meretz, president and CEO of the Interactive Telecommunications Association.
The industry’s share of the U.S. video market grew from about 8 percent in 2005 to about 16 percent in 2014, according to a recent report from IDC.
But the industry’s video revenues are still very low.
Video on mobile platforms has grown more slowly than movie or music.
Mobile video consumption was about $3 billion in 2016, according the Entertainment Software Association.
That compares with about $6 billion for the film industry and $10 billion for music.
The problem is not limited to video content.
“The video game market is going to have to get even bigger before it gets the kind of growth that movie and music have seen,” said Peter Kranz, an analyst with comScore.
“It’s going to need to be bigger than it is now, and I don’t think that is happening in the video game space.”
Video on the rise Video on video on mobile devices is growing at a rapid clip.
Mobile device sales have been growing for years, but the industry isn’t seeing the same growth in terms of video quality as it did in movies and music.
“I think the video on video is going up, not just in the mobile market, but in all of the video space,” said Tom Hegarty, a senior analyst at comScore and former head of the entertainment software industry at Apple.
Mobile apps and games have helped video games gain popularity.
“They have a unique position in the market, because they have more content than they have players,” said Kranzz.
Video games are increasingly being created for devices that can run iOS, Android and Windows 10, but they also have become popular on other platforms, including Amazon’s Fire TV, Roku and Apple TV.
“There are a lot of things that are really exciting for the industry,” said Michael Wertheimer, an industry analyst at IHS Markit.
“You have this incredible amount of innovation and innovation is still coming in, and it’s not just the mobile space that’s really exciting.”
But he added that there are still many hurdles to overcome.
For one thing, the mobile video game ecosystem is still relatively new.
“Video games are going to be a long way from mainstream,” said Heginess.
“That means they’re going to continue to have some of the issues that video on the desktop did decades ago, which are bandwidth issues and performance issues and how do you integrate them in the context of video content.”
In other words, there will be many new challenges to overcome as video game players migrate to mobile devices.
And many video games are still expensive to produce.
“If you’re making a $20 million movie and you’re going into the film studio, you’re probably going to charge $20m for it,” said hegarty.
Video game developers have also struggled to find the right distribution channels.
The entertainment software and entertainment technology industry has traditionally been a place where developers work for studios or independent producers, which typically has a very strong relationship with the game maker.
But as video games have become more popular and more widely available, developers have found themselves competing with studios, which often produce games for multiple platforms.
“When you look at the video games industry, we are in a place that is much more difficult to get into, and there is more of a willingness to try to create something for every platform,” Kranzy said.
“As the video market continues to grow, there are more opportunities to try and create something new and different.”
And some mobile game developers are beginning to see that opportunity.
For example, EA’s popular sports game “The Sims” is now available on Android, iOS and Windows Phone, and Microsoft is working to bring the mobile version of “The Legend of Zelda: Breath of the Wild” to Windows 10 devices.
That means more gamers can enjoy the game for free on any of these platforms.
And it means more people can find and play the game.
That has helped create a massive audience for the games that are currently available for free, and the number of people who are playing the games is also growing.
In a video game, the audience is the one who pays.