What was previously the domain of hardcore gamers, creating niche video games on whirring computers, has blossomed into an international, multibillion-dollar phenomenon. The explosion in popularity of e-sports – organized, multiplayer video game competitions – is just the tip of the iceberg, masking the continued convergence between video and cloud gaming, crypto, and e-sports. The COVID-induced international lockdown confinements further accelerated the already rapid industry growth. In 2021, the global gaming market was valued at US$180 billion, more than traditional sports and movies combined. Moreover, with an estimated market value of around US$295 billion by 2026, gaming is set to record an eye-watering annual growth (CAGR) of 10%.
Unsurprisingly then, gaming exerts a growing influence on cultural norms globally.
Video games have given rise to a subculture of individuals who pioneered and lived in appealing fantasy worlds, now gaining proficiency in traditional social realms. “Geeks” used to be technology enthusiasts, often lacking some seemingly relevant mainstream skill or appearance that initially led them to imaginary universes (Rossignol, 2008). Nowadays, as gaming rapidly becomes more popular, gaming skills start to be considered desirable qualities for an increasingly large number of people. The previous notion of the tech-savvy, reality-fleeing geek has changed, creating a more inclusive and welcoming society. Gaming, like sports, seeks to build bridges, uniting people from around the world in often collaborative and competitive, yet friendly and peaceful, quests for virtual glory. Still, probably the most indicative account of the industry’s far-reaching cultural influence is haute couture’s orientation to video games. Fashion, the century-long epitome of culture, is gradually embracing gaming content and formats – the figurative accolade by the queen. Thus, as more and more people enjoy the versatility and immersive experience provided by video games, the industry actively shapes mainstream culture in often refreshing and positive ways.
Yet, while gaming companies have so far been perfectly tailored to their audience’s desires, as evidenced by the rapid growth, some companies increasingly struggle to meet the needs of their employees. Many clients report agonizing experiences when neglecting employees, eventually losing customers and sacrificing growth. The industry has recently received comparably damaging media attention for its reportedly discriminatory hiring practices and crunching culture, resulting in increased attrition rates. Adding to that predicament is the industry-wide war for talents, in which the gaming sector also competes increasingly with adjacent digital businesses like streaming and e-commerce platforms. Therefore, to keep up with the rapid, technology-enabled growth, gaming companies must rethink and reprioritize their modus operandi – that is to say, redefine their culture.
While culture remains a disputed term in organizational contexts, it eventually boils down to the underlying beliefs and values that shape employees’ behavior and organizational conduct more generally. It is often summarized by the phrase “culture is the way we do things here”. Culture thus forms the very foundation of every company, leading one of the most influential management scholars, Peter Drucker, to postulate that “Culture eats strategy for breakfast”. It is the most valuable asset in any company, yet the hardest thing for rivals to imitate. Patents run out, people leave, but culture has repeatedly been shown to provide sustainable competitive advantages. Therefore, establishing a strong corporate culture is not just some vague, non-compulsory requirement. It is a core necessity for any company that seeks to deliver results. A healthy culture goes hand in hand with employee engagement, productivity, and a company’s ability to hire, develop, and retain top talent. In fact, culture defines economic success – or failure. Unfortunately, while culture is the most valuable asset in any company, it is also the hardest to manage. Its intangible and qualitative nature scares many executives, especially in data-driven industries like gaming. Executives accustomed to hard quantitative “facts” and seemingly objective KPIs regularly find conversations about culture irrelevant and distracting. That predicament is further complicated by the seemingly never-ending quest to manage culture, and once it has taken its toll, it takes tremendous effort and time to restore.
Ultimately, companies that successfully manage their culture will eventually outperform those that focus solely on growth, neglecting the human component of doing business. After all, an organization is a fictive entity composed of nothing but a number of individuals trying to achieve a joint goal. Gaming companies have successfully put a dent into mainstream cultures and now, after the rapid rise, it is time for some of them to polish their own culture and corporate identities to prepare for the next chapter. Leveling up, however, requires gaming companies to collect sufficient magic points along the eight behavioral dimensions that make up an organization’s culture.