Newzoo Forecasts $159.3 Billion Will Be Spent On Gaming This Year By 2.7 Billion Gamers Globally

Newzoo, gaming and eSports analytics platform, forecasts that 2.7 billion gamers across the globe will spend $159.3 billion on gaming in 2020, and the gaming industry will surpass $200 billion by the year 2023.

This spending level includes revenue from console, PC, and mobile gaming and represents 9.3% growth as compared to last year. According to Newzoo, it is expected that games revenue will grow at a rate of 8.3% growth per year, and the game’s revenue will be $200.8 billion in next three years.

Newzoo states that the next-generation consoles will be launched by the end of this year, and it is one of the primary factors contributing to the growth forecast. The coronavirus lockdowns have also resulted in surged gaming across the globe.

Newzoo explains that mobile gaming experienced the most significant increase in engagement as a result of coronavirus lockdowns, and mobile games are expected to generate total revenues of around $77.2 billion during this year, 13.3% up compared to 2019.

There are a few reasons mobile gaming will grow more than both console and PC gaming. A lot of mobile games apps are free, and over two-fifths of the world population has a smartphone, and most importantly, mobile games are the alternate to PC cafes.

Developing mobile games is also less complicated, which means there will be no coronavirus-related disturbance. Newzoo states that mobile games are expected to grow more popular soon once the coronavirus lockdown orders are lifted, mobile gaming will experience a sudden downturn. There are around 2.6 billion gamers across the globe, while only 38% of them pay for games. If a person purchases a console or PC, especially to play games, they will most likely keep playing after the pandemic measures are lifted.

Console gaming, with over 729 million players, will reach $45.2 billion this year, experiencing a 6.8% YoY growth. While the coronavirus will result in increased revenues and engagement, it is also affecting console gaming in negative ways.

The COVID-19 lockdowns will result in delayed release of console games in the future. These game delays will also affect the games scheduled to follow the release of next-generation gaming consoles. The console market experienced a downturn compared to its 2018 achievements, and Newzoo states that the console market will grow gradually every year once the next-generation consoles are released. Still, mobile games remain on top of the fastest-growing gaming segments.

Lastly, PC gaming with about 1.3 billion global players will generate $36.9 billion during 2020, and this gaming segment will experience a 4.8% YoY growth. COVID-19 lockdowns have resulted in this growth, and new PC games rarely generate revenues that result in a significant change in the market’s outlook.

The PC gaming market has moved to digital quicker than console games, yet PC games are also experiencing delays due to the virus. Around 50% of the game’s revenue will come from the United States and China during 2020, while growth in all three segments of gaming will be driven by regions such as Asia-Pacific and Latin America in the upcoming years.

Read next: How Gaming Cheats Lead To Malware
Previous Post Next Post