Gaming has become an inevitable part of the digital industry because of the several factors of influence including:
Population growth - since gaming is a mass-market, the increase of the potential customers leads to the increase of the actual customers.
Increase of the games and apps offered in the market. VentureBeat company provided the statistics that every day nearly 500 games are launched on different platforms globally. This report was provided at the beginning of 2016 and stated that there are more than 17 000 PC and consoles games as well as over 800 000 mobile games. According to these calculations, the number of mobile games is expected to exceed 1.16 million by the beginning of 2018.
Quality increase. Because of the big number of different mobile games, the competition is higher than ever and newly launched games are required to be adequate to the growing demand.
Price growth and monetization. The increasing quality requires modern technologies and human resources. The business side of the gaming is stronger than the entertainment side, and therefore the increase of the prices happens. There are two types of games in terms of monetization. First type are the games of the idea, they are not complicated and required less resources than the second group. These games though monetize through advertising. Second group of games are more complicated and there is strong demand for the rapid investment return. Their services usually require more money, and thus there are games with bigger number of paid features. One of the surveys held in 2016 stated that only a few hundred companies gross over $1 million in 2016. 17% of game developers receive no revenue while 15% earn over $1000 per month.
These factors resulted in the state of the market where global revenue from gaming has exceeded USD 100 Bn in 2016. Mobile games market growth is also constant with the expectation of over $40 Bn revenue.
As for the mobile gaming market, its share is growing as well with the 3 p.p. CAGR before 2020.
Population growth - since gaming is a mass-market, the increase of the potential customers leads to the increase of the actual customers.
Increase of the games and apps offered in the market. VentureBeat company provided the statistics that every day nearly 500 games are launched on different platforms globally. This report was provided at the beginning of 2016 and stated that there are more than 17 000 PC and consoles games as well as over 800 000 mobile games. According to these calculations, the number of mobile games is expected to exceed 1.16 million by the beginning of 2018.
Quality increase. Because of the big number of different mobile games, the competition is higher than ever and newly launched games are required to be adequate to the growing demand.
Price growth and monetization. The increasing quality requires modern technologies and human resources. The business side of the gaming is stronger than the entertainment side, and therefore the increase of the prices happens. There are two types of games in terms of monetization. First type are the games of the idea, they are not complicated and required less resources than the second group. These games though monetize through advertising. Second group of games are more complicated and there is strong demand for the rapid investment return. Their services usually require more money, and thus there are games with bigger number of paid features. One of the surveys held in 2016 stated that only a few hundred companies gross over $1 million in 2016. 17% of game developers receive no revenue while 15% earn over $1000 per month.
These factors resulted in the state of the market where global revenue from gaming has exceeded USD 100 Bn in 2016. Mobile games market growth is also constant with the expectation of over $40 Bn revenue.
As for the mobile gaming market, its share is growing as well with the 3 p.p. CAGR before 2020.
Table of Contents
1. Game market overview
List of Tables
List of Graphs and Charts
