Gaming companies, similarly to those in other creative sectors, thrive on collaboration which is arguably best achieved in-person. On the other hand, their tech-savviness also makes them particularly fitting to the post-pandemic remote way of working. The market opportunity afforded by new technologies and changing consumer behaviour means that it is now essential for gaming companies to have a suitable real estate strategy which both provides the sufficient working space for today and tomorrow, but retains the flexibility given changing market conditions and employee habits. Combining that with business growth plans and objectives, nailing the real estate strategy can be a crucial challenge for company's long-term success.
There are many factors which should be considered when formulating a real estate strategy. These include, but are not limited to current sector trends, strategic priorities and projected growth. For example, monetary policies and fluctuations in interest rates have resulted in an increasingly challenging times for raising funding in the sector, as well as a number of redundancies and staff reductions. Broader sector considerations also include the emergence of new business models, such as cloud gaming or e-sports and increased use of generative AI. On the other hand, increased legal and regulatory scrutiny, including protection of children, lootboxes, gambling and in-game purchases increase the administrative burden on gaming companies, as well as their compliance standards. These considerations will be key in determining the real estate strategy, given their value in attracting new talent, fostering creativity, adopting new technologies or preserving security and retaining positive reputation.
Once the strategy is in place and sufficient site has been found, ensuring suitable infrastructure will be essential. Aspects to consider can range from power and back-up generator space, to data centres, testing and collaboration space and cooling capacities. As many of them are environment-centred, a real estate strategy is also an opportunity to hit ESG targets.