Home Business Insights & Advice Gaming revenue to exceed £130bn in 2020

Gaming revenue to exceed £130bn in 2020

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28th May 20 2:28 pm

The mobile gaming sector will experience the highest growth, because most of the internet cafes are on lock and key due to the current situation and only mobile gaming is still going on. The revenue that will come from mobile gaming in 2020 is predicted to be up to £63.2 billion, which is a 13.3 percent increase from what it was in 2019.

The esports and video games genres stand as the available alternative for sports fans to hold on to because of the suspension of other forms of sports due to the present condition, and this gives credence to the predictions of a huge rise in industry revenue. Although the real sum isn’t disclosable, as many punters choose to visit betting sites where you can play jackpot games, by depositing skins, a common currency associated with CSGO gambling sites.

Based on information from Tom Wijman, a senior market analyst at Newzoo, the revenue to be generated by the global gaming sector in 2020 is £130.7 billion. This means that the year on year growth will be placed at 9.3 percent. The information went ahead to reveal that the revenue from the sector in 2023 will surpass £164 billion.

On the negative side, the revenue earned by Disney dropped by more than 50 percent, and the firm reported that they lost up to £1.1 billion in the last quarter. While in the movie industry, a loss of up to £8.2 billion has been reported by many sources in 2020 already, with many other leisure and entertainment industries suffering huge losses due to the lockdowns induced by our present condition.

While analyzing this, Wijman had to warn that this is also caused by the next generation consoles that are expected to be launched by the end of 2020.

The mobile gaming angle witnessed the highest amount of growth amidst all these, as mobile devices become very accessible to all, while the internet cafes remain under lock and key. In Wijman’s views, the revenue to be earned by mobile gaming in 2020 would be £63.3 billion, signaling an increase of up to 13.3 percent from last year.

The projected number of players to engage in gaming in 2020 is 2.7 billion, and 2.6 billion of them are expected to play on mobile. Meanwhile, out of the entire mobile players, only 38 percent of them will pay real money for the games.

In the entire gaming sector, only the browser based gaming angle is expected to lose some revenue. Wijman said that the growth of the PC based gaming system is expectedly slowing down this year because games that are very popular in that genre are those that have been here for the last three to ten years. PC gaming does not witness the volume of newer games that the mobile genre is witnessing by the day, plus the bad situation that is currently bedeviling the world have also slowed things down in that sector.

Talking to GameDaily.biz, Wijman posited that people who are interested in playing a particular game can actually wait for at least one month for that game to be available without any qualms. But this wait may not be possible if it has to be up to six months or even one year. But the fact is that no one has witnessed up to six months or one year waits for games before. When games become accessible in other countries, the movement to be witnessed in the market may not be predictable. But it is also good to note that only a few hardcore gamers who have been eagerly waiting to latch on certain games that will take part.

However, the story is different when you think about games that are downloaded on the PC.

Wijman went ahead to posit that with the record breaking spending and months of engagement that the market is coming out of, normalcy is expected to return anytime soon. The gaming industry will have the challenge of retaining the new players that were garnered during this turmoil, but majority of them are expected to stick to gaming even after this boom. There has been a swift movement to digital sales on consoles as occasioned by the present condition too.

Some of the key indices and stats in the report are given below.

Platform: The projected revenue (in billions) for 2020; year over year change

Mobile- smartphones and tablets gaming

  • Total for mobile: £63.3; +13.3%
  • Smartphones: £52.2; +15.8%
  • Tablets:  £11.2; +2.7%

PC – download/boxed, console, and browser based gaming

  • Total for PC: £30.2 +4.8%
  • Download/boxed: £27.8; +6.7%
  • Browser: £2.5; -13.4%
  • Console: £37; +6.8%

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