In 2020, 50% of Global Games Market Will be from Mobile Games

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Source: redverzdakar.wordpress.com

Mobile games will further dominate in terms of revenue streams, and the total global games market is catching up to “real” sports business.

Recently Newzoo updated their prediction for the global games market 5 years in the future. This adjustment is the biggest so far since they first publish the report five years ago.

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After the revision, the global games market in 2017 generated $116 billion, growing 10.7% compared to 2016. It is higher by $7.1 billion than the previous estimate published at the start of the year ($108.9 billion).

Below, you can see the graph of Newzoo’s 5-year prediction of global games market revenue from 2016 to 2020.

 

From all of the revenue prediction revision for 2017, mobile gaming has the biggest leap that sees its revenue up from $46.1 to 50.4 billion. Meanwhile, PC gaming rises from $29.4 to $32.3 billion, while console is going lower at $33.3 billion but still growing 3.7%.

From region point of view, China and Japan are the main countries that boost the numbers.

This revision itself was made possible from tracking and analyzing game revenues from 100 public companies. Public companies, such as big game publishers and giant media companies, represent 80% of global games revenues, going up from 75% in 2016.

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It may come from the convergence of media from largely known IP’s. As we all know, it is not rare that when a new superhero movie’s released, there will be one or more game(s) accompanying.

If things are going as predicted, then the growth of global games market from 2016-2020 will be CAGR +8.2%, with $143.5 billion of revenues in 2020. Half of the total revenues are from mobile devices.

Competitive gaming claiming a growing share of overall game time. China and Asia is home for competitive mobile titles, but in the West, it is also increasing, making Chinese publishers made games expansion to the West, such as Arena of Valor and Mobile Legends.

The success of PlayerUnkown Underground Battleground (PUBG) on PC also sparked battle royale titles in mobile. On the other hand, eSports are moving toward maturity. The coming two years will be crucial for them.

There are many things that can determine the growth of eSports globally, such as the success of local leagues, the implementation of regulations, new game formats and competition, the uptake of content rights sales, team profitability, and the impact of industry convergence.

If things are going well, eSports’ growth could accelerate and reach $2.4 billion in 2020 in an optimistic scenario, almost $1 billion higher than the base scenario of $1.5 billion.

This year, gaming will generate more than three times the $38.6 billion in movie ticket sales reported for 2016 by the Motion Picture Association of America.

If compared to global sports business, which is estimated to total between $130 and $150 billion, the global gaming market is not that far away. This report is only from software sales though, so if we add revenues from console gaming hardware (around $10 billion this year) and PC gaming systems and peripherals (around $23 billion in total), gaming is already a bigger global business than sports.

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Edited by Devi