Industry analyst Newzoo has estimated that Gaming Industry profits and it looks like worldwide revenue will eclipse Hollywood in 2019. According to the latest Global Games Market report, the global and gaming industry market will generate $152.1 billion in 2019, up 9.6% from 2018.
Hollywood global box office revenue for 2018 hit an all-time high with $41.7 billion in 2018 but still failed to overcome the Gaming industry revenue which was $135 billion in 2018. The trend will continue in 2019 as Gaming Industry profits continue to grow at a much higher rate as compared to Hollywood. It seems to be the reason why Hollywood stars are now taking more interested in the video games industry. Stars like Keanu Reeves, Norman Reedus, and Mads Mikkelson are working in the video games industry.
The gaming industry growth is attributed to “the complete convergence of different forms of digital entertainment all coming together”, according to Newzoo chief executive Peter Warman.
Moreover, 23 percent of worldwide gaming revenue in 2019 will be generated by PC titles. Out of $152.1 Billion, $68.5 Billion revenue or 45% of the global gaming market, will be taken by mobile gaming (smartphones and tablets) in 2019. As for console games revenue, it will continue to grow and will reach $47.9 Billion this year.
Newzoo also predicts that revenue generated by the console segment will dip slightly from the end of 2019 to 2021 due to the release of next-generation hardware like Sony’s PlayStation 5 and Microsoft’s Xbox Scarlett.
Newzoo then mentioned how developers are turning games into tools for connectivity as games nowadays allow players to engage more with fellow gamers.
The report mentions that the US is set to overtake China as the biggest gaming market in the world. China will lose the crown of being the world’s largest market due to the last year’s 9-month freeze on video game approvals by the Chinese Govt.
Publishers [in China] … are now able to monetise their new games once more, but the consequences of the freeze and new approval process will still impact growth in the Chinese market this year, said Tom Wijman, senior games market analyst at Newzoo.
The US will top the global gaming market industry for the first time since 2015, thanks to the growth of Nintendo, Sony, and Microsoft.
Furthermore, Newzoo predicts consumer spending growth on gaming is expected to reach USD$196bn (£156.3bn) by the end of 2020. By 2020, 20% of global games revenue will come from PC titles.
Expected growth depends on emerging markets, increase in cross-platform titles and mobile technologies such as 5G for easier access to online games and streaming services.
Chinese giant Tencent Holdings remains on top as the world’s biggest gaming company in terms of revenue despite the licensing freeze in the country.
China’s licensing blackout caused Asia-Pacific to lose its fastest-growing region status. Latin America is now the fastest growing market in the world due to the overall increase in eSports and video games.
Source: Newzoo site