The Global Video Game Industry’s Revenue Surpassed that of Movies and Sports

Video Game

The COVID-19 pandemic has caused the video game industry to generate more revenue than the film and sports industries combined.

According to IDC, the global video game industry’s revenue is expected to grow by 20% to $ 179.7 billion by 2020. Meanwhile, according to the Motion Picture Association of America, the global film industry’s revenue in 2019 reached $ 100 billion for the first time, while the global sports industry earned more than $ 75 billion by 2020, according to PricewaterhouseCoopers.

Both sectors have been affected by the pandemic, and the video game industry is expected to have double-digit growth this year. Experts predict strong growth in 2021 amid the release of Sony’s next-generation console. and Microsoft Corporation. and new games, although the coronavirus vaccine is widely available at 바카라사이트.

“I think growth will slow down with the availability of an effective, inexpensive, globally available vaccine by 2021, but I think by the end of 2021 there may be billions of people who will need a vaccine, “said IDC, research director. , Wildlife Industry Lewis Ward said in an interview with MarketWatch – so I think the downturn will happen in 2022.

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Smartphone Games are Growing in Popularity

The video game industry has grown steadily in recent years due to the many opportunities that games offer. The possibilities expand significantly as digital copies of games, sales of mobile and games across platforms not tied to a specific console, and streaming game services such as Microsoft’s Game Pass and online distribution services online such as Steam grow in popularity. .

While console sales are increasing with the release of new models, this segment is not the fastest growing and largest in the industry. The biggest growth is expected to come from mobile gaming, with China expected to be a significant contributor to growth in gaming revenue on smartphones and tablets, Ward said. Excluding in-game advertising revenue, mobile gaming global revenue is expected to grow by 24% year-on-year to $ 87.7 billion.

The economy is one of the main reasons to believe that the registered revenue advantage of mobile games over console and PC games will continue to increase in 2020. Smartphones can be purchased at more affordable prices than consoles like PlayStation 5, the new Xbox series from Microsoft and Nintendo. See Replacing Consoles. Between them is the computer game segment, Ward noted, as they use multifunction devices more often than game consoles, but less than smartphones.

Ward pointed out that China only accounts for about 1% of the console market, and China’s contribution to the growth of the smartphone and games market in Asia and the Pacific is the largest. The division’s revenue in the region is expected to increase about 25% year over year to $ 56.6 billion.

More than half of China’s mobile gaming market share is owned by two companies, Tencent Holdings Ltd. and NetEase. Outside of China, the leaders in this field are Activision Blizzard, Zynga. and Glu Mobile Inc.

The growth in mobile gaming revenue is also good news for publishers of smartphone and tablet games, including Apple. and Alphabet Inc.

Revenue from console games, which includes hardware and game software and services, is expected to increase 20% from 2019 to $ 52.5 billion, Ward predicts. Revenue from mobile and computer games excludes the sale of hardware.

The release of New Consoles as a Sales Growth Driver

The benefits of new console releases are particularly evident in the United States. In the 11 months of 2020, total U.S. video game consumption rose 22% year-over-year to $ 44.5 billion, according to the NPD Group. Hardware sales increased 34% to approximately $ 4 billion, software sales increased 21% to $ 38.4 billion, and accessory sales increased 22% to $ 2.1 billion.

November’s growth was even more pronounced with the release of PlayStation 5 and Xbox consoles and many long-awaited titles. Hardware sales rose 58% year-on-year to $ 1.4 billion in November, software sales rose 32% to $ 5.2 billion, and accessories rose 8% to $ 314 million, according to the NPD. Behind this huge hike there is some top-rated gamers who are ruling the gaming industry. Among them TFUE is popular because TFUE’s net worth is that enough that he can buy al latest consoles.

The three largest US video game publishers all outperformed the S&P 500 in 2020, with Activision Blizzard up 49% and Electronic Arts Inc. – Take-Two Interactive Software Inc. at 30% – an increase of 64%, while these figures increased by 64%. 14%.

According to a survey published last summer, 79% of respondents said they had played video games within the past six months or since the start of the coronavirus pandemic in March, an average of 14 hours per week compared to 14 hours. 12 hours ago.

JPMorgan analysts maintained a buy recommendation on Activision shares in a recent report, downgraded EA to neutral and began monitoring Take-Two shares, giving them a neutral rating. Experts also updated their recommendation on Zynga shares to “buy” from neutral.

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