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Every aspect of our lives appears to evolve rapidly every single moment after the advent of user-focused technology. Surprisingly, AR and VR have ushered in a gaming revolution that was previously thought to be unlikely. In recent years, the gaming industry has experienced rapid growth. Smartphone users, who spend the most time playing games on their phones or using modern gaming technology, are driving the gaming industry's growth. Smartphones and innovations are thought to have completely transformed the gaming environment around the world.

AR and VR- a significant game-changer in the industry

According to a recent Google-KPMG survey, India's online gaming industry is expected to expand to $1 billion in 2021, currently increasing from $360 million. This means that a 20% growth rate could be easily accomplished with online gaming groups, projected to contribute about 310 million dollars in 2021.

Entrepreneurs are on the lookout for experts who can spot technology that will change the game in the coming years. WATTY, a well-known company, is on its way to taking augmented reality gaming to the next level. This company has developed a dedicated app called "WATTY REMOTE" that has brought users from worldwide together on a single platform where a digital layer is built on top of a real-life canvas.

What is Augmented Reality (AR), and how does it work?

AR, an innovative and interactive experience that allows users to feel comfortable after engaging directly with the digital environment, was born after the arrival of the virtual in the real world. Augmented reality is a real-time combination of game graphics and audio content to the user's environment that aids in creating an artificial environment. In the gaming industry, augmented reality (AR) is used to create a play zone within an artificial world. When used on smartphones, laptops, or gaming devices, this technology is known to overwhelm users.

Since introducing the immersive experience of a real-world environment where any entity in the real world is enhanced, this technology has made a strong impact in the gaming industry. It has had a significant effect on the technological environment, affecting healthcare, e-commerce, marketing, automotive, education, security, and retail, among others. By 2023, the augmented reality gaming market would have surpassed its target valuation of approximately $385 billion.

What is Virtual Reality (VR), and how does it work?

Virtual reality (VR) is a technique for simulating a world. Like the user interface, VR allows users to immerse themselves in the best of the artificial world. Instead of staring at a computer, users are immersed in 3D environments and can communicate with them. It activates all of the senses, including sight, hearing, touch, and smell. However, all come with certain drawbacks in terms of the experience, such as content compatibility and a lower range of processing capacity. The head-mounted display is a central component of virtual reality (HMD).

Virtual reality has been praised as a game-changer in the gaming industry, offering a better version of a primary user interface. Virtual reality (VR) has become a hot subject in gaming trends, capturing the future market’s interest. It provides a range of advantages to its users, including beautiful virtual objects and the ability to immerse the user in a real-time game. However, these advantages have improved the gaming experience by bringing the digital world into existence, which has increased user attention and retention.

AR and VR- a revolution in the gaming industry

From 2021 to 2026, the demand for AR and VR in gaming is projected to hit $11.0 billion, rising at a CAGR of 18.5 per cent. The growing popularity and convergence of AR and VR technologies in mobile phones and other wearable devices drive the market. AR and VR are widely regarded as the most exciting new technologies on the planet for everyday life. By 2025, the industries that use AR and VR technologies are expected to reach over a trillion dollars. In the burgeoning mobile gaming community, however, AR has a particular location. Nearly half of all global game industry apps show no signs of changing due to the handset's built-in camera, which acts as a great source of Augmented Reality gaming. The market will expand due to the growing demand for AR in mobile gaming and the wider gaming world.

Factors that are creating an impact in the market scenario

New Platforms and AR and VR Amusement Parks

The demand for augmented reality and virtual reality is transitioning from a sole consumer market to a more commercial one. Due to the high costs of leveraging technology, theme and amusement parks have held one or two virtual rides in their parks; however, once the market becomes saturated, virtual reality parks may become a trend once the technology becomes more available to park owners. More businesses may start creating apps specifically for park vendors. This new technology has increased the demand for AR and VR in the gaming industry outside of consumer applications.

VR Headsets' Prices are Dropping

The high cost of VR head-mounted displays is one of the limiting factors. However, in recent years, the cost has dropped dramatically. The numerous business trends are exacerbating this. NVIDIA, Oculus, AMD, and Microsoft have formed a partnership to make virtual reality headsets more affordable and open to a broader audience. The potential price drop should boost purchases, and these businesses should benefit from the change right away. The founding of the consortium and general technological advancements have resulted in substantial price reductions.

2021: An Opportunistic Year for AR and VR

• Virtual reality and augmented reality have had a profound influence on the gaming industry. In a world dominated by mobile devices such as smartphones and tablets, augmented and virtual reality is increasingly gaining popularity.
• Now that the combination of AR and VR has dramatically increased expectations, many gaming giants around the world, such as NVIDIA and Sony, are actively investing in research and development of AR and VR technologies to fulfil those expectations.
• During the forecast period, the increasing availability of headsets that support AR and VR technologies is expected to accelerate development.
• Within the first month of its release, the newly released location-based AR game Pokémon GO became a huge hit, with over 80 million downloads.
• Crowdfunding by start-ups to create new apps and devices is now generally regarded as a big trend that will continue for some time.
• Companies have become more productive in new technology and applications as game design elements have become more widely adopted. This is regarded as the market's primary catalyst.

Virtual and augmented reality would have a significant effect on sports. Since virtual reality games are more interactive, they will be restricted to specific areas such as homes, workplaces, and parks. Augmented reality games have made their way into public spaces, and some are location-based. Players can need headsets, motion-tracking cameras, or AR/VR-compatible mobile phones to play games with Augmented and Virtual Reality. A PC with a high-end graphics processor or a console will be needed for those who use headsets. For those who do not wish to purchase the technology at this time, these games can include non-VR and non-AR modes.

From 2021 to 2028, North America is projected to lead the augmented reality and virtual reality industry, with the highest CAGR.

The global virtual and augmented reality in gaming is segmented into North America, Europe, Asia Pacific, the Middle East, and Latin America.

Among all the regions, North America accounted for the largest share in the market in 2020. The region is expected to grow at a robust CAGR rate, owing to the presence of extensive and core technology like 5G, 3D audio, infographics, AR and VR and others. The presence of major companies focusing on the advancement of technology is another driving factor of the market.

Asia Pacific is estimated to grow at the highest CAGR during the forecast period. The growth can be attributed to emerging countries like India, China, South Korea and Indonesia. The growth can be associated with major companies’ presence and the strategies they are adopting for leveraging the opportunities in this region.

Significant Highlights of the market:

• GPU deep learning, Volta, and NVIDIA advanced modern Artificial Intelligence. Implementing these GPUs and other components would pave the way for the development of improved AR and VR devices.
• Niantic buys Seismic Games and Escher Reality to further their augmented reality offerings. There are games with very similar elements on the market, and the company is working on experimenting with potential features like multiplayer and cross-platform. Competitors will be putting these new features to the test in games that have yet to be published.

Conclusion: The effect of technology on the gaming industry in future

Consumers' lack of knowledge of AR and VR content is the main hindrance to the VR and AR market. AR and VR content can take several different forms, which can be confusing. There's still a lot of confusion about whether users are aware that these resources exist or whether they know they're using AR or VR when they do.

AR and VR have revolutionised the world, especially in the gaming industry. These technologies assist in developing a realistic image and sound and other sensations to provide a virtual environment that stimulates a gamer's physical presence in the environment. Users will explore a completely immersive environment that will replace the natural world and be powered by their body movement. As a result, it demonstrates that AR and VR technologies are only getting started. With time, gamers have a lot more to see.