YouTube Facing Poor Performance, Seeking Breakthrough Through Online Games?

Parent Company Google Tests Game Services Through Employees
Analyzed as a Breakthrough for YouTube's Growth Slowdown

YouTube is reportedly conducting internal tests to provide online game services.

According to a report by The Wall Street Journal (WSJ) on the 23rd (local time), Google's parent company YouTube sent an email to internal employees asking them to test a new game service called 'Playables.' The test games included arcade games such as 'Stack Bounce,' where players break bricks with a ball.

WSJ explained, "This game service can be played not only on YouTube's PC web browser site but also on mobile devices based on Google's Android and Apple's iOS," adding, "This allows users to easily enjoy and share the games together."

YouTube is already a popular site among gamers. It competes with Amazon's Twitch in terms of live streaming viewer numbers.

WSJ evaluated, "As YouTube seeks new growth areas, it could establish a significant presence in this field through hosting various online games."

This attempt by YouTube is analyzed as a breakthrough in response to the gradual slowdown in advertising revenue. YouTube recorded advertising revenue of $6.7 billion (approximately 9.6 trillion KRW) in the first quarter of this year. This is a 2.6% decrease compared to the same period last year, marking the third consecutive quarter of revenue decline.

Advertising revenue in the third quarter of last year also fell 2% year-over-year to $7.07 billion (approximately 10 trillion KRW). This was significantly below the $7.42 billion (approximately 10.6 trillion KRW) forecast by financial analysis firm StreetAccount.

YouTube's sluggish performance is interpreted as the result of several adverse factors, including the end of the special demand for non-face-to-face economic activities as the COVID-19 pandemic subsides and intensified competition in the video platform market.

In particular, TikTok, which emphasizes short videos under 30 seconds called 'short-form,' is rapidly replacing YouTube. According to a survey by U.S. investment bank Cowen, the proportion of 18- to 24-year-olds who chose YouTube as the most used video platform dropped from 45% in the first quarter of last year to 35% in the first quarter of this year. Meanwhile, TikTok surged to 22%, fiercely chasing YouTube.

U.S. economic media CNBC analyzed, "During the COVID-19 pandemic, when most users were glued to communication devices at home, YouTube was the biggest beneficiary," adding, "With the COVID-19 endemic and TikTok encroaching on the video market, YouTube's advertising revenue has declined."

This content was produced with the assistance of AI translation services.