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Video Games - Global Market Trajectory & Analytics

  • ID: 4721445
  • Report
  • September 2020
  • Region: Global
  • 640 Pages
  • Global Industry Analysts, Inc
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COVID-19, a Launch Pad for Video Games to Move to the Next Level


The COVID-19 pandemic is taking video games to the next level as sequestered people around the globe escape to gaming to cope with the stress of lockdown and social distancing. The global market for Video Games is projected to grow at a CAGR of 9.3% to reach a market size of US$293.1 billion by 2027, after recording the highest growth spike of 15.6% and 12.4% in 2020 and 2021 respectively. The pandemic and its lockdown measures have emerged to be a boon to the video games industry as user engagement with video games and eSports spirals. Several gaming companies worldwide have recorded unexpected increase in revenues over the last couple of months. Video games are a source of distraction for people of all age groupsand number of hours spent per day gaming has increased significantly with the onset of the disease pandemic. In the United Sates over 25% of consumers plan to increase their spending on online games, while a sizable 63% voice intentions of not reducing planned spends. With lockdowns resulting in cancellations of live sporting events, there has been a rise in gamers playing online basketball and baseball games such as NBA 2K17 and Major League Baseball (MBL). Accelerating existing trends in the gaming industry, the first few weeks of the lockdown witnessed demand for Nintendo Switch console spike, leaving the company scrambling to keep up with demand. Hardware spending on games is growing at rates higher than software spending indicating addition of new gamers and expansion of the gaming population.

Video Games During Quarantine is Now Being Promoted as Good for Mental Health?


Health experts are giving the go ahead sign for video games as a beneficial stress buster during COVID times. Video games during a pandemic such as the current one helps people self-manage their social needs. They also aid in promoting mental wellness by enabling people and communities toconnect thereby preventing anxiety and depression. At a time when socialization norms are being rewritten, socialization through games is emerging into the forefront as a good for you behavior. Although over the years, the number of game purchases has reduced, average spending per game however has recorded healthily increases. Game developers are therefore critically focusedon increasing even further engagement per user in hopes of driving in-game micro transactions. The gaming industry is therefore making a marked shift from single game purchases towardsa recurring revenue model supported by a base of active users. Growing prominence of video games as a form of modern artistic expression and entertainment and acceptance of video gaming as an educative and meaningful leisure activity represents a major change in consumer perception that has and will continue to help expand the audience base in the market. The educational value offered by video games is resulting in the creation of a new trend called Gamification of Education, where games are used as valuable high-tech teaching tool to impart 21st century skills such as creative thinking, problem solving and collaboration.

Innovation Will Continue to Remain a Key Catalyst Even in the Post COVID-19 Period ?


The market will continue to benefit from rapid developments in hardware and software gaming platforms and effervescent investments in the development of new game genre, ideas and titles. Few of the factors responsible for improved player engagement and thereby the increase in the number of active gamers worldwide include launch of virtual reality headsets and smartglasses that lend visual realism to games; development of graphic-intensive games with more engaging and digitally immersive gameplays; rise of social games with viral connections for more continuous engagement; launch of games with no pre-defined ends, with ample in-game rewards and continuous offline evolution of game characters designed for addictive play style; Always On sensors in electronic wearables, the ensuing rise of video game enablement on wearables and design of micro-engagement models targeted at grabbing player attention for just few seconds for an extreme user engagement. Asia-Pacific including China will remain a large and growing market worldwide led by factor such as expanding base of affluent middle class population with a high degree of technological sophistication; strong penetration of smartphones, mobile Internet and the ensuing popularity of wireless games, browser based games and downloadable games; growing preference for interactive entertainment; and escalating popularity of social games, free-to-play games and pay-to-play games.

Competitors identified in this market include, among others:
  • Activision Blizzard, Inc.
  • Atari SA
  • BANDAI NAMCO Holdings Inc.
  • Blizzard Entertainment, Inc.
  • Capcom Co., Ltd.
  • Electronic Arts, Inc.
  • iWin, Inc.
  • Konami Digital Entertainment Co. Ltd.
  • Konami Gaming Inc.
  • Konami Holdings Corp.
  • Microsoft Studios
  • Nintendo Co. Ltd.
  • PopCap Games, Inc.
  • Sega Holdings Co., Ltd.
  • Sony Interactive Entertainment
  • Square Enix Holdings Co. Ltd.
  • Square Enix Ltd.
  • Take 2 Interactive Software, Inc.
  • Tetris Holding, LLC
  • Ubisoft Entertainment SA
Note: Product cover images may vary from those shown
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I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • COVID-19 Impact on Video Games Industry
  • To Cope With the Pandemic, Sequestered People Around the Globe Escape to Gaming: Average Increase in Time Spent on Video Games (In %) Feb-to-Apr-2020
  • Surge in User Engagement with Games
  • Potential Delays in Launch of New Games
  • Amidst COVID-19 Crisis, Gaming Industry Adapts to Remote Working Approach
  • Long-Term Implications for Gaming Industry
  • Video Games: An Introductory Prelude
  • Global Market Prospects & Outlook
  • Developing Markets Spearhead Growth in Video Games Market
  • Changing Demographics of Modern Players Sets Stage for Increased Consumption of Video Games
  • Global Gaming Market: Percentage Breakdown of Number of Gamers by Age Group for 2015 and 2019
  • Below 18 Years Gamers
  • Women Succumb to the Charms of Video Games
  • Global Gaming Market: Percentage Breakdown of Gamers by Gender for Years 2014 & 2019
  • Older Gamers Remain a Lucrative Demographic Segment
  • Rise in Perceived Educative Value of Video Games Fosters Growth in the Market
  • Video Games Software Market: A Review
  • US Video Games Market Breakdown (in %) of Revenue by Hardware and Software Segments for 2019
  • Digital Delivery Format Overshadows Physical Retail Games Market
  • US Market for Video Games Breakdown of Sales by Delivery Format for 2010 and 2019
  • Competitive Landscape
  • Leading Gaming Companies Worldwide
  • Global Video Games Market: Revenues (in US$ Billion) of Select Companies for 2019
  • Top Video Games of 2019
  • Game Developers Focus on Diversity
  • Mobile Gaming Market: A Competitive Perspective
  • Comparatively Low Entry Barriers Invite Scores of New Companies
  • Consolidation of Mobile Game Publishers
  • Leading Companies in the Global Mobile Games Market
  • Top Mobile Games Ranked by Revenues for January 2020
  • Outsourcing: An Antidote to the Predicament
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • A Review of Notable Trends in the Gaming Industry
  • Gaming Industry Continues to Evolve Technologically
  • Innovations Fuel Growth for Video Games Market
  • A Glance at Select Innovations in Video Games Market
  • AI Innovations Transform Video Games
  • Blockchain Presents Benefits in the Video Games Sector
  • Innovations in Hardware
  • Serious Gamers Support Growth in Boxed & Digital Download Console Gaming Market
  • Digital Downloads Grow in Number
  • New Generation of Home Console Games with Unique Attributes Sustains Audience Interest
  • Cross-Platform Gaming
  • Launch of VR Variants to Help Consoles Market Stay Afloat
  • Action Games Genre Top Video Console Software Sales
  • Review of Major Video Gaming Consoles
  • Key Statistical Findings
  • Global Number of Gamers (in Billion) for the Years 2015, 2017, 2019 and 2021
  • Global Console Operating System Market (in %) for 2020
  • Top Selling Consoles Worldwide Until 2019
  • Boxed & Digital Download PC Games Software Battle Against Browser and Mobile Games
  • Digital Download Game Versions Grow at the Cost of Boxed PC Games
  • Gaming Platforms Attracting Developer Interest: % of Game Developers Working on a Game by Gaming Platform
  • All-time Best Selling PC Games Worldwide by Unit Sales as of 2019
  • Online Games Experience Sudden Surge in Traffic Amid Covid-19 Lockdowns
  • Mobile Gaming: A High Growth Market
  • Key Trends in Mobile Gaming Market
  • ‘Hyper-Casual’: A Key Mobile Gaming Trend
  • Augmented Reality Enters the Mobile Gaming Space
  • Leading AR Categories on iOS: 2019
  • Monetization of Mobile Games
  • Mobile/Wireless Gaming Software Downloads: A High Growth Market Segment
  • Continued Rise in Mobile Phone Users Drives Mobile Gaming
  • Consumer Mobile Usage Habits Foster Growth in Mobile Gaming Market
  • Opportunity Indicators
  • Global Market for Smartphones in Billions : 2016-2021
  • Smartphone Penetration Rate as a Share of Total Population
  • Share of Mobile Phones of the Total Internet Time: 2014-2020E
  • Percentage of Internet Users Using Mobile Phone Apps by Type
  • Percentage of Time Spent on Mobile Apps by Category for 2019
  • Percentage of Internet Users Playing Video Games by Device Type: 2019
  • Global Mobile Internet Market (2020E): Percentage Share Breakdown of Revenues for by Data Service Category
  • 5G: Game-Changer for Mobile Gaming Industry
  • 5G Smartphone Sales in Million Units: 2019-2021
  • Global Smartphone Subscription Breakdown by Technology: 2019 and 2025
  • Cloud Gaming: An Emerging Platform for Games Distribution
  • Key Benefits of Cloud Technology that are Expected to Boost Internet Gaming Platforms
  • Economic Benefits
  • Scalability
  • Ubiquity
  • Data Management Concerns Outsourced
  • Cloud Insurance Shields from Losses
  • Remote Access: The Real Flavor of Cloud Gaming
  • Mobile Cloud Gaming: The New Paradigm
  • Softening Prices Increases Number of Gamers, Supporting Market Prospects
  • Convergence of Video & Games to be a Key Growth Factor in Coming Years
  • Global eSports Market Breakdown by Revenue Stream (in %) for 2020
  • Global eSports Audience Breakdown (in %) by Occasional Viewers and Esports Enthusiasts for 2019 and 2024
  • World eSports Market Revenue Breakdown by Region/Country for 2019
  • AR/VR Experience in Video Games Boost Industry Revenues
  • VR Gaming Market: % of Consumers Wanting Application of VR to Games by Generation for 2019
  • VR Solutions Market in Gaming Sector: Percentage Share Breakdown of Revenue by Device Platform for 2015 and 2019
  • Developments at Hardware & Content Level Boosts Opportunities for Video Games Software
  • Physical and Digital Crossover Adds New Dimension to Video Gaming
  • Video Games with Motion Control Keeps Players Glued
  • 3D Gaming Titles Grow in Prominence
  • Advancements in HTML5 Boosts Mobile Games
  • NFC Technology Increases Adoption of Wireless Multi-Player Games
  • Convergence & Improved Network Capability: Crucibles for Success
  • Micro Gaming Studios & Independent Developers Finally See Their Efforts Get Rewarded
  • COVID-19 Leaves Advertising Spend Soaring in Video Games Industry
  • A Peek into Challenges in Store
  • High Game Development Costs Jeopardizes Developers’ Profitability
  • Aggressive Marketing Strategies Make Gamers Uncomfortable
  • Reselling Hurts New Title Purchases
  • Software Piracy Takes the Wind Out of the Market’s Sails
  • Negative Publicity Over Violent Video Games Blemishes Business Opportunities
  • Lack of Skilled Workforce Hurting New Product Development Initiatives
  • Challenges to Reckon With for Online Games
  • Free-to-Play Games: A Major Threat for Paid Online & Wireless Gaming Titles
  • Product Overview
  • Video Games: A Primer
  • Video Games Software: A Definition
  • Classification of Video Games Software by Gaming Platform
  • Console Games Software
  • PC Games Software (excluding Online Games)
  • Casual Web Games
  • Mobile Games Software
  • Video Games Software Distribution Platforms
  • Physical Boxed Video Games
  • Online Downloads
  • Online Casual Web Browser Games
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

UNITED STATES
  • Video Game Sales Witness Sharp Rise Amidst COVID-19 Pandemic
  • Key Market Trends in Nutshell
  • Video Games Software: Market Basics
  • Changing Demographics: A Prime Driver
  • Key Statistical Data
  • US Video Games Market: Percentage Share of Gamers by Age Group for 2019
  • US Video Games Market: Percentage Share of Gamers by Gender for 2019
  • US Video Games Market: Top Selling Video Games during 2010-2019
  • US Video Games Market Breakdown of Unit Sales by Genre for 2019
  • US Video Games Market (2019): Percentage of Video Gamers Playing Games with Others by Gamer Group
  • US Video Games Market Breakdown of Dollar Sales (in %) by Category for 2019
  • Console Game Software Contributes to Video Games Market
  • Wireless Gaming Makes Massive Strides
  • Hollywood-Inspired Games
  • Violent & Adult Theme Video Games: Cause for Concern
  • Distribution Dynamics
  • Market Analytics
CANADA
  • Market Overview
  • Market Analytics
JAPAN
  • Market Overview
  • Unique Features of Japanese Gaming Industry
  • Mobile Gaming Leads Video Games Market in Japan
  • Market Analytics
CHINA
  • Market Overview
  • Licensing Strategy Drives Market Growth
  • Mobile Games Rise in Popularity
  • Transition from Casual Gamers to Hardcore Gamers: The New Market Trait
  • Chinese Mobile Games Market (2019): Percentage Breakdown of Average Time Spending Per Day on Mobile Games
  • Chinese Mobile Gaming Market: Percentage Breakdown of Gamers by Gender for 2019
  • Opportunities for Domestic Companies
  • Market Analytics
EUROPE
  • Market Overview
  • Gaming Population in Europe: Gamers as % of Total Population by Age Group for 2019
  • European Video Games Software Market by Distribution Channel (in %) for 2019
  • Mobile Gaming Market On Growth Path
  • Market Analytics
FRANCE

GERMANY

ITALY

UNITED KINGDOM
  • Market Overview
  • Mobile Games Propel Market Growth
  • Mobile Gaming Market in the UK: Percentage Breakdown by Gender for 2019
  • Mobile Gaming Market in the UK: Penetration Rate (in %) by Age Group for 2019
  • Advergaming to Target Right Customers
  • Market Analytics
SPAIN

RUSSIA

REST OF EUROPE

ASIA-PACIFIC
  • Market Overview
  • Rising Significance of South-East Asia in Video Games Market
  • Market Analytics
AUSTRALIA

INDIA
  • Market Overview
  • Mobile and PC Games Share Top Honors in Indian Gaming Market
  • Opportunities and Threats for Indian Gaming
  • India Emerges as a Destination for Game Developers
  • Impact of COVID-19 on Gaming Startups in India
  • Market Analytics
SOUTH KOREA
  • Market Overview
  • South Korean Mobile Gaming Market Breakdown of Gamers (in %) by Gender: 2019
  • Market Analytics
REST OF ASIA-PACIFIC
  • New Zealand
  • New Zealand Video Games Market (in %) by Age Group: 2019
  • New Zealand Video Games Market Breakdown of Gamers (in %) by Gender: 2019
  • Market Analytics
LATIN AMERICA

ARGENTINA

BRAZIL
  • Market Overview
  • Brazilian Console Video Games Market Breakdown (in %) by Distribution Channel for 2019
  • Market Analytics
MEXICO
  • Market Overview
  • Market Analytics
REST OF LATIN AMERICA

MIDDLE EAST

IRAN

ISRAEL

SAUDI ARABIA

UNITED ARAB EMIRATES

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 112
Note: Product cover images may vary from those shown
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