The global video gaming market is predicted to earn $99.6 billion in 2016 as reported by Gamasutra. The data comes from a breakdown of Newzoo’s Global Games Market Report. Newzoo is a “market intelligence” company that focuses on the gaming, mobile, and eSports markets.
Mobile is predicted to surpass PC gaming in revenue this year. It will grow to a 27% share of gaming industry revenue (compared to 24% in 2015) and is predicted to increase to a 34% share by 2019.Countries in the Asian-Pacific region are the largest market. They account for 47% of all global gaming revenue and are expected to have a 10.7% year over year increase. China comprises over half of this revenue with 24.4% of the share making China the single biggest games market in the world. The United States comes in second place with a predicted market of $23.5 billion.
Part of Newzoo’s analysis in the Global Games Market Report talks about their “Screen Segmentation” style of classifying the market where they divide revenues up by “screen types” as opposed to platforms. The four screen types of this system are Entertainment Screen (televisions & consoles), Computer Screen (PCs), Floating Screen (tablets & handheld consoles), and Personal Screen (smartphones). The revenue split has PCs in the lead with $31.9 Billion followed by televisions & consoles at $29 billion, smartphones at $27.1 billion, and tablets & handheld consoles at $11.6 billion. Newzoo expects the market share for tablets & handheld consoles to decrease as the market for smartphones grows.
Interestingly, Newzoo does not yet consider VR its own category in their “Screen Segmentation” classification; the Global Games Market Report considers it as a peripheral that falls under the purview of other devices such as PCs and consoles. Newzoo is currently engaging in a VR research project across 26 countries.
If you’re curious about the methodology used in Newzoo’s Global Games Market Report you can read more about them here.
What do you think about the predicted growth of the gaming market? Do you feel that Newzoo’s predictions for Smartphone growth hold up to your expectations for the platform? Let us know in the comments below!