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The Video Game Industry still an emerging Market despite it s $116 Billion Market Size.

          I will be drawing most of my statistical data from the Newszoo GameMarket Survey ,though I might be making some reference to other lesser authorizes. The video game industry today has for years proven be man's best reason to stay excited, even after the Video Game Crash of 1983 it only took the industry two years to reinvigorate the rave of excitement in the world of video gaming. The solution then was not that hard after all, just pick out those weeds among the crops; the crops here is referred to as the top publishers (while the weeds are those half baked publish startups), the intention for the “pick over” was actually to steam line a recovering process by mapping out a specific market standard and finally buy off those smaller publishers flooding the market with junks consoles. But as for the demand for the product, I bet you it never died off, more reason why top console companies (who survived the clash) quickly adjusted in sales immediately those adequate policies where put in place. Just like the human body cannot do without water, human psyche can barely survive without excitement, an excitement only Video Gaming has actually taken over entirely.

video game industry annual revenue
source: Business Insider 

So with the increasing video game industry annual revenue which signifies the demand for more fun, the Video Game Market promises to grow and keep growing. According to 2016 survey, the Global Game Industry is expected to experience a steady but concurrent growth of 8.2% from 2016 towards the end of 2020. But it was as if the growth has started taking effect prior to the prediction ’cos in 2015 the three console game industry giants Nintendo, Sony and Microsoft annual report confirmed an impressive profit report of 100% growth rate from both hardware and software.

The reports are specified as thus:

  • Nintendo – Hardware – 56% Growth.
  • Software – 44% Growth.
         Total Revenue - $4.4 Billion.

  • Sony – Hardware – 51%
  • Software – 49% Growth.
         Total Revenue - $12.1 Billion.

  •  Microsoft - Hardware – 36%
  • Software – 64% Growth.
          Total Revenue - $9.3 Billion.

This growth actually has a dynamic impact as it continues through 2016 and 2017. According to the companies 2016 and 2017 report it actually shows that:

2016 Data:

  • Nintendo – Hardware – 45%
  • Software – 55% Growth.
       Total Revenue - $3.4 Billion.

  • Sony - Hardware – 51%
  • Software – 49% Growth.
         Total Revenue - $13.1 Billion.

  • Microsoft - Hardware – 28%
  • Software – 72% Growth.
          Total Revenue - $9.0 Billion.

While in 2017 Data:
  • Nintendo – Hardware – 60%
  • Software – 40% Growth.

         Total Revenue - $9.2 Billion.

  • Sony - Hardware – 34%
  • Software – 56% Growth.
         Total Revenue - $15.3 Billion.

  • Microsoft - Hardware – 26%
  • Software – 74% Growth.
         Total Revenue - $9.5 Billion.

With the pace at which the industry grows, Newszoo Game industry team of reviewer speculated that “this trend is expected to continue with a compound annual growth rate of 8.2% from 2016 -2020”. But I will add that this growth will continue even after 2020 judging from the year-on-year growth of major countries like China, Japan and Russia which their growths has maintained not less than 3.7% margin since 2015. In 2017, the Chinese Game Market ended at $32.5 Billion, Japan $14 billion while between 2016 ending and middle of (June) 2017 the number of an average Russian gamer increased to 17.3 million which in turn propelled an increase in the total game revenue to $1.5 billion, ranking #11 in the Global Video Game Market.

Segmented Growth

The experienced growth and the compounding boom in the video game industry didn’t just limit its self to a particular type of gaming device. As the global video game industry revenue closed at over $166 billion and all segment contributed tremendously to this development e.g. the mobile games contributed the most with $50.4 billion with Tablet Games contributing $11.4 billion, Mobile Phone Game $39.1 billion (in all) representing 43% of global video game industry profit in 2017. The second is actually console game which has made a slight shift since in its position since the introduction of mobile games.
The console game contributed $33.3 billion representing 29% contributing to the global game industry. Next are the PC games having a neck-to-neck battle with the console game though lower than the console revenue with a slight markup of just 1%. So, the PC contributed $32.3 billion from its two main categories online game play platform which contributed $5.3 billion and PC Downloadables added $27.1 billion to the profit. But in all the PC total contribution represents 28% growth in the global video game industry.
The tremendous success in the industry growth in 2017 (year ending) came as a surprise to the industry analyst. According to Newszoo team, “during the first three quarters of the year, game revenue came in higher than expected. We actually thought that revenues would end at $108.9 billion this year (2017)”. The surprise remark I believe came due to the radical increase in PC gaming section which showed a surprising strength towards the year ending. According to Newszoo data as interpreted by (VB), “the estimated closing figure of $29.4 billion suddenly rose to $32.3 billion”.

Also a future for Sports Games.

As per the publishers, Esports has proven to be the reason for the increasing love for sports games; Esports joined its console counterparts in the gainer’s clique. Esport has been predicted to accelerate to $2.4 billion in 2020 (in an optimistic scenario) as against $1.5 billion it reached in 2017 (almost $1 billion higher).
In conclusion, the industry is growing no doubt not just in revenue but side-by-side with individual players excitement, in fact it has been anticipated that in near future video games will out sale Box office movies further proving the indivisibility of this digital make-believe world . #Bulevur

Relevant post: CLICK HERE for an article on video game design.
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