This is Exchanges at Goldman Sachs where we discuss development shaping industries markets and the global economy.

I'm Allison Nathan, a senior strategist in Goldman Sachs research.

Today we're going to take a closer look at a sector of the economy that's poised to become

the next big battleground for big tech, gaming.

To do that, I'm joined by Jung Min, co-head of the Technology, Media, and Telecom Group in Asia-Pacific

ex-Japan in our Invest banking division.

Jang, welcome to the program.

Thank you.

Glad to be here.

Let's start by setting the stage for where the gaming industry is today.

Video games have been around for decades. They've provided entertainment for children and adults. All of us have our favorites and have grown up and watch their evolution. But the popularity of gaming has sharply accelerated. In fact, the gaming industry is now larger than the movie and music industries combined. So just how big is the gaming industry today?

So it depends, you know, of course, which sources you use and exactly how you define it.

But you're right, the games industry is almost twice as big based on the numbers that I've seen compared to music and movies combined.

And it's starting to approach $200 billion, which would put it about in the same category as pay TV, you know, which includes cable,

streaming, etc. So it's close to the largest category in entertainment.

If you think about what the main drivers are behind, you know, the

interest we've seen from investors, you know, let alone the general public, what's

driving that? What are the factors? Yeah, so it's interesting the first games

I worked on was Blue Mobile and I remember at that time you know it was a relatively

smaller company at that time and we got lots of questions from investors saying,

you know, the problem with games is that I can't tell

which games are going to be hits.

...