What happened: Google is exploring interactive online games as a new revenue stream for YouTube, as reported by The Wall Street Journal. An internal email reveals that Google has invited employees to test a product called Playables, which allows users to play games on a desktop browser or via the YouTube app for Android and iOS. Details: While the report mentions multiple games being tested, it specifically highlights Stack Bounce, an ad-supported arcade game where players break layers of bricks with a bouncing ball. However, a YouTube spokesperson did not confirm the news, saying only that the company is "always experimenting with new features" but has "nothing to announce right now." Why it matters: While YouTube already earns revenue from gaming livestreams, Playables offers the chance to generate more income from the gaming industry, countering the recent slowdown in growth of digital ad spending. Despite the recent failure of Google's Stadia game streaming service, Playables would leverage YouTube's existing large user base, similar to Netflix's mobile gaming offering for its paying subscribers. What the numbers say: Projected revenue in the online games market is estimated to reach $32.6B by 2027, with a user base of 1.25 billion users. User penetration is expected to be 14.7% in 2023, increasing to 15.8% by 2027.
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