Global Mobile Games Market Could Exceed $102 Billion Dollars In 3 Years
Financialnewsmedia.com News Commentary
PALM BEACH, Fla., Nov. 23, 2020 /PRNewswire/ -- The world is currently undergoing a harrowing and unprecedented event: the COVID-19 pandemic. During these trying times, gaming has become a means of escapism and time filling for many. As a result, one of this year's growth drivers is an increased interest in gaming due to COVID-19-related lockdown measures. Recent industry reports and publications estimate that the world's 2.7 billion gamers will spend $159.3 billion on games in 2020 and that the market will surpass $200 billion by 2023. Across all three segments (PC, console, and mobile), almost half of consumer spending on games will come from China and the U.S. in 2020. However, growth will be driven by emerging markets in regions like Latin America and Asia-Pacific in the years to come. According to NewZoo, the total games market is projected to continue to grow in the following years, exceeding $200 billion at the end of 2023. "By then, we forecast the games market to grow with a +8.3% CAGR to $200.8 billion… Due to the new generation of consoles, growth in console game revenues will steadily grow every year, although we do not foresee revenues reaching double-digit growth before five to six years into the launch. Mobile gaming will continue to be the fastest-growing segment overall." Active tech companies in the markets this week include Versus Systems Inc. (CSE: VS) (OTCQB: VRSSF), Zynga Inc. (NASDAQ: ZNGA), GameStop Corp. (NYSE: GME), Unity Software Inc. (NYSE: U), Activision Blizzard, Inc. (NASDAQ: ATVI).
The NewZoo article reported: "All game segments saw an increase in engagement and revenues as a result of the COVID-19 measures, but mobile gaming saw the biggest increase. In total, mobile games will generate revenues of $77.2 billion in 2020, growing +13.3% year on year. There are a few reasons why mobile will enjoy more growth than both PC and console gaming: Mobile gaming has the lowest barrier to entry: more than two-fifths of the global population owns a smartphone—and many mobile titles are free to play; Mobile gaming as an alternative to PC cafes: the closure of these cafes has led many to (temporarily) churn to mobile gaming; and The mobile development process is less complex and, therefore, less likely to suffer delays from COVID-19-related disruption."