- This report features two parts with separate downloadable files for each.
- The first part is a 170-page detailed and in-depth report on how the video games industry operates in 2016, plus data on how and why the business has matured as it has.
- The second part is a 130-slide PowerPoint deck that drills down to the critical details and data about the video games industry and its major players.
- Executive Summary: An overview of market size and general segmentation
- Industry Value Chain: This is a high level introduction to the major players in the game space from hardware manufacturers to developers
- Software Market Size and Segmentation: This looks at the key game software segments
- Publisher/Developer Profiles: A look at some major game companies with a focus on financials
- Indie Development and Publishing: Analysis of opportunities for smaller companies
- Hardware Manufacturer/Distribution: A look at hardware platforms including consoles, PCs, mobile, virtual reality and accessories as well as the role of physical and online distribution
- Business-to-Business Service Providers: A look at market size for services provided to the game industry
- Advertising and Game Information Products: A look at the business around advertising to game consumers, including eSports
- Consumer Segments: An analysis of both types of games and consumer segments
- Historical Overview and Current Trends
About this Report
Table of Contents
Index of Tables
- Video Game Market Size
- Software Publishing Value Chain Overview
- Arcade Era
- Rise of Nintendo
- Console Competition
- Multimedia and PC Games Phase One: Rise and Collapse
- Rise of Sony
- Steady Rise of PC Online Games
- Growth in Asia
- The MMOG Era
- The Wii Consumer and Rise of Microsoft
- Growth of Social and Browser Games
- Growth of Mobile Games
- New Console Systems and Decline of Nintendo
- Digital Distribution, Indie Developers, Virtual Reality & Esports
3 Game Industry Food Chain and Business Models
- High-End Game Food Chain
- - High-End Business Model
- - Developers
- - Publisher
- - Developer/Publisher
- - Straight Developer Publishers
- - Affiliate Label Developers
- - Publisher/Distributors
- - Retailer
- - Online Distribution
- - Console Manufacturers
- - Content Providers
- - PC Titles: Revenue Breakdown
- - Console Titles: Revenue Breakdown
- Games as a Service/Freemium/F2P Business Model
- - Overview
- - GAS/Freemium Revenue Side Analysis
Revenue Model 1: Modest Success Freemium Game /Optional Subscription
Revenue Model 2: Solid Hit Freemium Game /Optional Subscription
Revenue Model 3: Slow Build Big Hit Freemium Game /Optional Subscription
Revenue Model 4: Major Hit Freemium Game/Optional Subscription
Revenue Model 5: Solid Hit Pure Virtual Goods Model
Revenue Model 6: Major Hit Pure Virtual Goods Model
- - Simplified Freemium Revenue Business Models
- - Freemium Cost Side Analysis
Marketing and User Acquisition Cost
Client Delivery Costs
Payment Methods and Financial Infrastructure Costs
Freemium Cost Model
- Subscription Models/Streaming Game Services
4 Game Industry Market Leaders
- Market Leaders in Game Hardware and Distribution
- - Alphabet Inc/Google
- - Amazon
- - Apple
- - Electronic Arts/Activision Blizzard
- - GameFly
- - GameStop
- - Gree/DeNA
- - Microsoft
- - Nintendo
- - NVIDIA
- - Razer
- - Sony
- - Samsung
- - Tencent
- - Valve
- Market Leaders in Game Publishing And Development
1. Leading Diversified Game Companies
2. Leading Premium Game Publishers
Japanese Publishers: Capcom/Square Enix/Konami/Sega Sammy
3. Leading Mobile Game Companies
King Digital Entertainment
Walt Disney Company
4. Leading PC Game Companies
Big Fish Games/Churchill Downs
National Geographic Animal Jam
5 Game Consumer and Game Genres
List of Tables:
Table 1 Global Video Game Software Revenue: Physical versus Digital 2010-2020
Table 2 Global Game Software Revenue by Major Platform Type: 2010-2020
Table 3 Video Game Console Hardware Unit Sales by Generation: 2009-2020
Table 4 Global Console Video Game Software Physical vs. Digital: 2009-2020
Table 5 Worldwide PC Game Revenue by Source: 2014-2018
Table 6 Worldwide PC Game Revenue by Region: 2014-2018
Table 7 Worldwide Console Physical Game Revenue by Region: 2010-2019
Table 8 Worldwide Smartphone and Tablet Revenue by Region: 2010-2019
Table 9 Worldwide Mobile and PC Gamers by Region
Table 10 PC Game Digital Distributors
Table 11 Console Game Digital Distributors
Table 12 Mobile Game Digital Distributors
Table 13 Key Game Industry Sub-Segments
Table 14 Traditional Publishing Revenue Split
Table 15 Traditional Console Publishing Revenue Splits
Table 16 Modest Success Scenario for a Freemium Game with Optional Subscription
Table 17 Five Year Cumulative Revenue for Modest Success Scenario for a Freemium Game with Optional Subscription
Table 18 Solid Hit Scenario for a Freemium Game with an Optional Subscription
Table 19 Five Year Cumulative Revenue for Solid Hit Scenario for a Freemium Game with Optional Subscription
Table 20 Slow Build Big-Hit Scenario for a Freemium Game with an Optional Subscription
Table 21 Five Year Cumulative Revenue for Slow Build Big Hit Scenario Freemium Game with Optional Subscription
Table 22 Major Hit Scenario for a Freemium Game with an Optional Subscription
Table 23 Five Year Cumulative Revenue for Major Hit Scenario Freemium Game with Optional Subscription
Table 24 Solid Hit Scenario for a Freemium Game with a Pure Virtual Goods Model
Table 25 Five Year Cumulative Revenue for Solid Hit Scenario Freemium Game with Pure Virtual Goods Model
Table 26 Major Hit Scenario for a Freemium Game with a Pure Virtual Goods Model
Table 27 Five Year Cumulative Revenue for Major Hit Scenario Freemium with Pure Virtual Goods Model
Table 28 Basic Revenue Model at 2% Conversion Rate
Table 29 Basic Revenue Model at 5% Conversion Rate
Table 30 Basic Revenue Model at 10% Conversion Rate
Table 31 Basic Revenue Model at 15% Conversion Rate
Table 32 Freemium Game Marketing Funnel
Table 33 Standard Transaction Fee Comparison between U.S. and Korea
Table 34 Client-Based Freemium Customer Acquisition Cost Model
Table 35 Client-Based Freemium First-Year Profit/Loss Analysis
Table 36 Examples of Online Game Subscription Services Circa 2005
Table 37 Examples of Game Streaming and Subscription Services 2016
Table 38 Top 10 Market Leaders in the Video Game Industry: 2016
Table 39 Video Game Market Leader Ranking Metrics
Table 40 Global Game Industry Software Market Leaders by Segment
Table 41 Worldwide Video Game Consumers by Region
Table 42 Global Video Game Consumers by Region
Table 43 Game Type Classification Categories
Table 44 Example of Leading Cross Category Games
Table 45 Top Games by Category
As a business overview, this report does not focus heavily on raw numbers and data. Instead it is a more qualitative analysis of the game industry providing context around major historical and anticipated trends.This report provides plenty of industry data and detailed forecasts but it is important that those forecasts do not exist in a vacuum. The data only tells part of the story and this report looks to fill in the story behind the data.
This report is a designed to provide a high level overview of the general game industry size and how the game industry works across its entire value chain. There is a focus on the role of major industry players from hardware manufacturers to distributors and content developers. A great deal of the focus is on who makes the money when a consumer buys a video game.
Unfortunately with such a rapidly evolving industry the trend is to assume that lessons of the past do not apply to current market conditions. Unlike other reports the focus in this report is not on the latest and greatest technology or trends, but instead the goal is better understanding how the business of home video games has evolved from its early days in the 1970s to its present. This is information that should be common knowledge to any serious executive in the game industry yet may not be well understood to others. The hope is that readers of this report will be able to avoid many past mistakes that have killed otherwise solid products
Of course, a major focus is on the role of digital distribution and how it has been slowly impacting the game business for many years. There is often an erroneous assumption that digital distribution is a “new” opportunity for the game industry. However, this publisher has been focused on digital distribution since the mid-1990s. While faster broadband and larger storage has simplified digital distribution and made it significantly more widespread many of the same challenges remain.
The game industry remains a hit driven business where a few products have enormous success while most products lose money. The goal of companies in the industry remains balancing the ratio of success to failure. In many cases, digital distribution has only increased the challenge of marketing and given more power to entrenched players. However, the game industry today is growing on all fronts and contains many opportunities for new entrants to find their particular niche.
It is also should be noted that the game industry is much more than just the developers and publishers that make and deliver the games to consumers. An entire infrastructure has grown up around servicing the companies in the game industry and this report looks to identify the major categories of service providers as well as the growing opportunity to provide hardware and accessories to game consumers from virtual reality to eSports and beyond. Games have become a major consumer lifestyle and as such are part of many aspects of the entertainment business. A knowledge of the basics of the game industry is a key to understanding much consumer leisure behavior in the 21st century. This report is designed to give decision makers a fairly painless way to gain such knowledge.
- Alphabet Inc./Google Inc.
- Apple Inc.
- Big Fish Games, Inc./Churchill Downs Inc.
- Bigpoint GmbH
- Capcom Co., Ltd.
- EA Mobile
- Electronic Arts, Inc.
- Facebook, Inc.
- GameFly, Inc.
- GameStop Corp.
- Gameforge AG
- Gameloft SE
- Glu Mobile, Inc.
- Goodgame Studios
- Gree, Inc./DeNA Co., Ltd.
- GungHo Online Entertainment, Inc.
- King Digital Entertainment PLC
- Konami Holdings Corp.
- Machine Zone
- Microsoft Corp.
- NCSoft Corp.
- National Geographic Animal Jam
- Netease, Inc.
- Netmarble Games Corp./CJ E&M Corp.
- Nexon Co., Ltd.
- Nintendo Co., Ltd.
- Nvidia Corp.
- Paradox Interactive
- Razer Inc.
- Riot Games
- Samsung Group
- Sega Sammy Holdings Inc.
- SoftBank Group Corp./Supercell
- Sony Corp.
- Square Enix Holdings Co., Ltd.
- Take-Two Interactive Software, Inc.
- Tencent Holdings Ltd.
- Time Warner Inc.
- Ubisoft Entertainment S.A.
- Valve Corp.
- Walt Disney Company
- Wargaming Public Co Ltd
- ZeniMax Media Inc.
- Zynga Inc.