Gaming Grows To Nearly US$100 Billion

Market researchers Newzoo early this morning released an update into their annual analysis of the video game industry, and their results aren't really that surprising.

Games make a metric shit load of money.

Photo: Shutterstock / Iryna Tiumentseva

Researchers Newzoo update their annual analysis into the industry every quarter, and according to their latest projections video games will generate US$99.6 billion in revenue this year alone.

The majority of that comes from PC and MMO games; smartphones (but not tablet devices); and consoles, with consoles just barely the largest segment. Tablets are expected to make up around 10% of that figure, while the market for handhelds is expected to shrink.

The Asian-Pacific market is also now the largest segment in gaming, worth a staggering US$46.6 billion. China accounts for US$24.4 billion of that, an amount that is expected to grow to US$28.9 billion.

Perhaps more interesting than the segment breakdowns is the expectations for virtual reality. "Worth noting is that Newzoo expects game software revenues from VR to remain marginal for the near future and to largely substitute other game spending on console, PC and mobile," the firm says.

"In the short to medium term, Newzoo expects the lion’s share of VR revenues to be generated by hardware sales, spectator content, and live viewing formats."

The firm says one of the biggest drivers for the industry is "the convergence of games and video on a global scale, with esports at the epicenter". "This trend is transforming games into all-round entertainment franchises, opening up new ways of engagement and complementary revenue streams," they added.

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Comments

    I'm sure the Australian Government will still balk at it saying, "Well, $100 billion isn't $200 billion so I don't know if we should invest in the industry."

      "And besides, those figures would be overly inflated by countries that have a larger population of under 13 year olds who are the only people that consume video games anyway"

    Why is he using a gamepad for dota 2? No wonder he died...

    I always hoped that efforts like the Minecraft and DayZ creators made to encourage gaming industries outside the US would bear fruit, but they have sort of veered off into other directions.

    Didn't I read something by Alex once about Hall's work in fostering NZ game dev?

    Imagine if Notch saved his pennies and instead of buying Beverly Hills or whatever, he put that money to work in building sustainable games market in the EU, untied from America?

    If the Asia-Pacific region one day leap-frogs the US as 'the number one market' then I'd be all for it.

      That would have been for GON last year. Hall was opening a studio there but was getting screwed around by the Immigration department. Wonder how that turned out ...

    So double down on "the crunch" and terrible work practices is what I saw when I read this...

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