The digital games market will pass the $100 billion revenue mark by the end of the year, according to Newzoo research. The $138 billion expected to be generated from the gaming industry in 2018 represents more than 13.3% increase from 2017, or $16.2 billion. This wonderful growth is largely attributed to the increase in popularity of mobile gaming and the freemium model, which allows gamers to play a game for free, but charges for items such as extra lives, according to the report. For the first time, 51% of the industry’s revenues, or $70.3 billion, is going to come from mobile platforms. Looking at the big picture, mobile is overtaking the entire gaming industry. In 2018 mobile is expected to exceed 50% of all gaming revenue and by 2021, it’s expected to be a $100 billion market on its own. That’s more than the entire world of video games was worth just three years ago.
Key Growth Factors
- The use of smartphones and internet is one of the essential requirements of video games market in the age of digital distribution of games. Thus increased internet and smartphone infiltration across the globe is driving the global digital games market.
- Factors like change in global economic growth which bring consumers with more disposable income to spend on gaming and increase in the number of worldwide gamers are continuously raising the demand for digital gaming across the globe.
So, let’s take a peek into the major happenings of the video gaming industry trends in 2018.
- On the Apple App Store, Netflix tops the list with a record of the most downloads and revenues in the U.S.
- Revenues from Smartphone gaming hit 16.5 billion euros in 2018 and expectations are that it will grow by 26.3% come 2021.
- S was ranked first place for mobile game session shares which accounted for 20%, with India taking the second place at 13% of the shares.
Gaming Video Content
- Most searched query for game download on google is “Free online casino” games.
- In the first quarter of 2018, Twitch had 16,000 users streaming simultaneously compared to YouTube Gaming Live which had only 8,700 users within the same period.
- Free slots casino games trending among iGaming lovers.
- Premium PC title PlayerUnknown’s Battlegrounds was 2017’s breakout success, generating $712M in revenue in just eight months. PUBG had 27.8 million units sold in 2017, making it the the highest paid game titles on Steam.
- League of Legends is the most popular core PC game worldwide as of March 2018, followed by PUBG and then Fortnite.
- Esports generated $756M in revenue and is on track to become a billion-dollar business in 2018.
PC and console based digital sales have made much smaller contributions to the growth of the market compared to the mobile games app sector. Mobile gaming through app stores has completely transformed the scale and growth rate of the digital games market, the new cross-platform digital games landscape and the continued growth of new segments like eSports, gaming video content, and virtual reality have led to a dynamic market that shows no signs of slowing.