The video game industry worldwide will make a revenue of nearly $200 billion in 2020, states IDG Consulting chief, Yoshio Osaki, based on research. The industry is all set to secure the position of the largest entertainment sector worldwide.
This turned out to be the only essential takeaway from a recent presentation by Yoshio Osaki, held at TheWrap’s GamingGrill at Herringbone, Santa Monica. This research by IDG also highlighted that gaming is the biggest of all entertainment businesses worldwide.
Gaming Industry Expansion
Apparently, the gaming industry worldwide is expanding at a pace sufficient to make a revenue of nearly $180 billion this year. This will be a huge 24% jump in revenue from just two years ago. Gaming will surpass TV as the biggest and most lucrative form of entertainment worldwide, making an annual revenue of $195 billion, according to IDG’s projection.
Looking at the statistics and public interest, we should probably think of the upcoming release of video games by the industry leaders similar to upcoming blockbuster movies. Let’s take an example of Marvel’s ‘Avengers: Infinity War’ that earned $640 million in its opening weekend last year. This was about $85 million behind ‘Red Dead Redemption 2’ from Rockstar Games in its opening weekend back in October 2018.
So, what’s behind this sensational rise of the gaming industry? Well, there is not one but multiple dynamics at play. Firstly, it’s cleared by the release of ‘Red Dead Redemption 2’, gaming, in the true sense, is international. Almost all major releases in the United States drive incredible sales in both Asia and Europe.
The Statistical War
The statistics, in some cases, apply in the opposite direction. For instance, FIFA from EA Sports indicates sold about 14 million copies worldwide, where 29% of the total was from North America, according to IDG’s research. FIFA is quite popular in Europe and it accounts for 69% of its total sales.
Several new industry entrants in addition to new ways to play the games are encouraging the industry’s growth. Bitcoin casino games have also established itself as a popular online gambling game. While companies like Nike, Amazon, and Facebook are traditionally not gaming-oriented, they pretty much have secured their ways to venture into the industry.
Major Entrants to the Industry
Amazon bought Twitch, a go-to online streaming platform for gamers worldwide, back in 2014 and its involvement in gaming has grown since then. Twitch recently enjoyed its highest concurrent viewership for an event, i.e. about 1.7 million people streaming Fortnite.
Earlier this year, Snapchat also launched its very own in-app gaming arcade. Apple also revealed it would soon be getting into gaming. Smartphones, other than allowing users to watch their favorite TV shows and movies on the move, have become an integral part of the video game industry worldwide.
While gaming has already made it to the top of the entertainment industry worldwide, we still have a lot more to see in 2020.