Last Updated on January 8, 2023 by Faiza Murtaza
The video gaming industry will grow by 14.7% in 2021. It is a marked difference from 2016 forecasts, which announced a total of $95 billion over the same period – a 76.7% difference from previous estimates. Video game sales could surpass $268Bbn between 2025 and 2525. As of now, Asian gamers have more than tripled.
How does the video game industry make money?
The video game industry makes its money through a variety of channels. The most obvious is through the sale of video games themselves. Game publishers make money when people buy their games.
In addition to direct game sales, the video game industry also generates revenue through
in-game microtransactions. These are small transactions that players can make within a game to purchase items or unlock new content. For example, a player might spend a few dollars to buy a new skin for their character in Fortnite.
Microtransactions are becoming an increasingly important part of the video game industry, as they provide a way for publishers to generate ongoing revenue from players after they have purchased a game outright.
You can learn more about the Merchant of Record model for Gaming Companies here.
The global video games market value will grow to $80.9 Billion annually by 2025 — up from
$56.6 Billion in 2021. Industry statistics estimate a global gaming audience of approximately 175 million people. China ($40bn revenues) ranks first in the Global Top Gaming Market, followed by the United States ($36bn revenues). According to a recent survey, the number of people who play games, in general, are overwhelmingly satisfied with their gaming experiences (49%). The Chinese surveyed said that relaxation was 80%, while “addiction” was 37%.
Asian countries dominate the market by 2021 with revenue shares exceeding 53%. The emergence of a Chinese gaming hub allowed for a global dominating region. Accelerating smartphone penetration in China is helping China’s regional markets grow. Tencent Holding LP has emerged as an important player in the international videogame market because of the company’s innovative growth plans such as acquisitions of Supercell Oy, Riot Games, and other gaming companies.
The offline segments dominated the market in 2021, with more than 72%. The Internet segment will continue growing, but the fastest CAGR will be expected over the forecast period. This growth could have resulted in the increased popularity of multiplayer games. Online video
games can be helpful in communicating between players as well as improving overall gaming
enjoyment. Social networks can particularly prove influential when providing online videogame platforms.
The mobile sector dominated this industry in 2019, with revenues of over 40%. Mobiles are expected to remain a dominant segment in the future. The growth of smartphones is largely driven by the growing smartphone penetration rate around the globe. In addition, the expansion of mobile devices is largely due to the increasing demand for mobiles that display bigger displays which guarantees better games. Sales of the mobile device segment are expected to continue to drive the segment over the forecast period.
This paper explores how the COVID19 Pandemic affected the game industry. 78 percent of US mobile gamers reported that they will continue playing mobile games until the COVID19 pandemic is over. Video game fans reported spending 44 percent more hours in a video gaming facility this week, in comparison to one week earlier this month.
PC remains a popular gaming platform with 56.3% of games being developed on PC by 2020. Sony has beaten Microsoft by the way it focuses on console development, with 25% on the PS4 and 23% on Xbox One.
The trends continue as we look at the next-generation PlayStation, with 11 % working on PS5 gaming games while a further 9 % working on the PSX series. Mobile gaming remains the most popular platform with 86% of players currently playing mobile games.
In recent years, we have seen a clear increase in games DLC revenues. This growth trend is expected to continue. The increase in micro-transactions by gamers in recent years was further illustrated by more than half who have made this investment in recent months. As DLC market shares grow, package markets fall along the same lines. The company held 80% of the market share in 2011 before reducing it to 46% in 2018 but remained stagnant.
According to Metacritic Legends of the Time, Ocarina of The Age of Zelda is currently the most successful game ever made, although 2019 gave it the most run around. Persona 5 Royal was named as runner-up on an 80 – 90 – score. The market share is 26.9% for action games followed by Shooting games with 20.9% for role play games. Despite its huge revenue and high sales figures, the Pokémon franchise still dominates the chart with more than 90 billion sales.
Key Company & Market Share Insights
Market participants have mainly focused on developing next-generation gaming consoles as well as entertaining gaming content. Popular game console platforms on the market are PlayStation 4 from Sony Computer Entertainment, Xbox One from Microsoft, and Nintendo Wii
U. The NFL and Status PRO developed the NFL’s Pro Era game in April 2022 with MetaQuest and PlayStation. Market participants focus heavily on innovative products to gain market share.
The global video-gaming market is expected to grow 12.9% from 2021 to 2030. Continuing technological advances and improvements in both hardware and computer systems are anticipated to help accelerate a growing graphics market. The proliferation of smartphones is expected to contribute to growth in the industry.
How profitable is the gaming industry?
The gaming industry has grown by $165 billion in sales from 2010 to 2025, and analysts forecast it to generate an estimated $250 billion in sales by 2019.
Is the gaming industry the biggest industry?
Video games are huge. The industry is actually greater than the film industry combined, and it continues to grow. While it is not as much a buzzword as film or music has, gaming is still popular across the world with over 200 billion players in a global market. This represents 26% of our global population.
The video game industry is growing rapidly. It is expected to reach $128 billion by 2022. There are many opportunities in this industry for businesses of all sizes. If you are looking to get into the video game industry, now is the time
Apart from this, if you are interested to know about Human Resources as a Career Choice in Australia then visit our Gaming category.