The computer games industry is one of the fastest growing computer sphere and entertainment sector. The number of gamers is growing, with 2.5 billion players in 2019, and gaming itself is becoming a highly paid profession. An ecosystem is being formed. Around the core, consisting of game developers and publishers, specialized media, special financial and advertising tools are developing. Specialized game places appear: Internet cafes, locations for cyber tournaments, etc. Game development is being taught in higher educational institutions, etc. In addition, players from adjacent markets – electronics manufacturers or Internet corporations that have the resources to withdraw to the market of promising gaming solutions.
As for the trends that determine the global gaming industry development, here, first of all, it is necessary to note technologies: mobile, cloud, virtual, graphics, artificial intelligence, etc. For several years, computer games have been integrated into social networks. A reverse trend has also appeared – they are becoming a kind of social networks.
The esports popularity is growing, said Darren Keane from Storm International. Cybersport tournaments can already be comparable to championships in traditional sports in terms of prize money. For example, the prize fund of the Dota 2 cyber tournament in 2013 amounted to $ 219 million. In addition, esports has become a catalyst for the development of such direction as streaming – online broadcasts of the game’s passage in real time, posted on special sites.
Users are ready not only to play, but also to watch others play, because this kind of streaming gives a complete picture of what a computer game is. Esports disciplines have already appeared on many bookmaker sites, and the number of bets in this direction is growing very rapidly, said Michael Boettcher from Shangri La.
In order to cover new market segments and search for new income sources, an industry participants number are moving to material markets. In particular, we are talking about the sale of goods with brand symbols, the organization of theme parks, etc.
The global computer games market is becoming deeper and larger. Over the past five years, according to Newzoo estimates, it has grown at an average of 11% per year and in 2019 reached the $ 152 billion mark, overtaking a number of other competitive content markets, in particular, we are talking about the film and music industries. whose total market volume was only $ 62 billion.
The growth drivers were the availability of the Internet and computerized devices, primarily smartphones, as well as the expansion of distribution channels. In 2020, the global computer games market volume grew by 18%, to 170-180 billion dollars. But the COVID-19 pandemic has made its own adjustments, acting as a kind of market driver. Nevertheless, analysts fear that in the difficult economic situation, users will begin to cut their spending on entertainment.
Regionally, the Asia-Pacific region continues to be the largest market – over $ 70 billion in 2019. China and Japan are the driving countries. On the second place, according to Newzoo, is North America, the main position is occupied by the United States – about $ 40 billion in 2019, while Eastern Europe and the Russian Federation, with $ 4.2 billion, is the most underdeveloped gaming market in the world.
At the same time, the largest global computer games market segment is mobile games – 45%, or $ 68.4 billion. According to analysts, this area will keep growing. On the second place are games for consoles – 32%, or $ 48.6 billion. Desktop solutions in total occupy 23% of the market and $ 34.9 billion, of which 2% are browser online games, and the remaining 21% are downloadable or boxed versions.
The choice of a monetization model for computer games depends on the region and platform – console, smartphone / tablet or personal computer, added Darren Keane, Storm International. In some countries, consoles are not common, in others, due to the Internet piracy high level people are not ready to pay for original digital products. Also, most modern games use a hybrid approach to monetization: when combined, the methods form a flexible model, where one monetization method disadvantages can provide opportunities for another.
According to analysts, the income of large gaming companies or corporations that have powerful gaming assets is from $ 6 to 18 billion per year. At the end of 2019, the TOP 5 public companies with gaming assets in the world are Chinese Tencent, Japanese Sony, American Apple, Microsoft Studios and Activision Blizzard.
Separately, it is necessary to note indie developers – independent game content producers, which differs from high-budget games in greater originality and does not have any restrictions in its functionality or storyline. The breakthroughs among indie games as of July 2020 are Braid (Number None, 2008), World of Goo (2D Boy, 2008), Minecraft (Mojang, 2009), Super Meat Boy (Team Meat, 2010) and Journey (Thatgamecompany, 2012).
The gaming industry is quite specific, including in investment terms. Until recently, it was believed that the computer games development is predominantly a creative process, so commercial success is difficult to predict. Nevertheless, the investment flow into the sector is growing. Venture funds, specializing in computer games, appear.
According to analytical agencies, in 2019 the investments volume in the global gaming industry was about $ 7.2 billion, including venture capital investments and IPOs (+ 6% to the level of 2018). The most interesting areas for investors for July 2020, according to Digi-Capital, are technical infrastructure, multiplayer and mobile games.
Video games are the most profitable entertainment industry sector. In 2019, gaming turnover was double that of the music and video industries combined, according to figures released by Newzoo, Billboard and IFPI for their respective markets.
The video game industry has experienced steady growth in recent years, especially thanks to mobile games, which at this time represent 45 percent of its total global income.