Analyzing the Impact of Social Media and Influencer Endorsements on Game Revenue using Multiple Linear Regression in the Metaverse

The gaming industry, particularly within the metaverse, has seen significant transformations driven by the integration of social media, influencer marketing, and player engagement metrics. These elements are crucial in shaping the success and revenue generation of games. This study explores the role of social media mentions and influencer endorsements in influencing game revenue, applying DBSCAN clustering to segment player engagement into distinct groups. By analyzing the "Gaming Trend 2024" dataset, which includes key metrics such as social media mentions, influencer endorsements, in-game purchases, and game revenue, we identify patterns in player behavior that directly impact revenue generation. The DBSCAN clustering method was employed to group players based on their social media interactions and influencer influence, identifying key segments that contribute to game success. The results reveal that certain clusters, characterized by higher social media engagement and influencer endorsements, are associated with increased game revenue. In contrast, other segments showed lower engagement and contributed less to overall revenue. The clustering analysis highlights the power of social media and influencers in driving player behavior, which in turn drives financial outcomes for game developers. This research provides insights into how targeted marketing strategies, personalized influencer campaigns, and tailored engagement efforts can enhance game revenue. This study offers practical applications for game developers and marketers in the metaverse, emphasizing the need to leverage clustering insights to optimize marketing strategies and increase revenue. Future research could expand on these findings by integrating sentiment analysis of social media mentions, exploring alternative clustering methods like hierarchical clustering, and developing hybrid models that combine clustering with predictive analytics to forecast game revenue trends.