Video Games - Thematic Research

The gaming software market was worth $197 billion in 2021 and will become a $470 billion industry by 2030, according to the publisher estimates. Mobile gaming will be the dominant segment, accounting for more than 50% of global gaming software revenues by 2030.

The video games industry continues to evolve, driven by changing user demands, new monetization and distribution channels, and technological progress. Today's industry is in the throes of a transformation driven by themes like 5G, augmented reality (AR), virtual reality (VR), esports, cloud gaming, and the metaverse. As these themes mature, competition will intensify among traditional game publishers, tech giants, and companies in other sectors (e.g., retail and tourism). As a result, several leading game publishers will become M&A targets, with tech giants the likely acquirers.

Key Highlights

• Games and gaming platforms are increasingly focused on the metaverse, a virtual world where users share experiences and interact in real time within simulated scenarios. Although the metaverse is in the very early stages of development, game developers and publishers are trying to use it as a conduit for the convergence of video games with music and video streaming, sports, and digital collectibles. Over the next five years, more enterprises and consumer brands will invest in video games to enter the metaverse.
• Gaming is an ideal starting point for the metaverse. The metaverse involves communities built on engaging content. The same factors are driving video games to become a $450 billion-plus industry by 2030. Epic Games, Roblox, and Niantic are leading metaverse development on the back of their massively popular games and global user communities. Microsoft's bid to acquire Activision Blizzard for $68.7 billion will help it obtain the communities and content to create metaverse experiences. Blockchain-based games, like The Sandbox and Axie Infinity, are also fueling metaverse development.
• Video games is a heavily contested industry that attracts big-ticket M&A deals every year. 2021 saw a record 52 video games-related M&A deals, with the vast majority focused on mobile gaming. However, mobile gaming specialists such as Krafton, Jam City, and Tencent also acquired companies to improve their PC and console gaming capabilities. In addition, Apple's introduction of App Tracking Transparency (a feature of iOS that mandates that apps and games on the App Store seek users' permission to track their activity) triggered the purchase of some prominent mobile game advertising and monetization platform providers. In 2021, video games-related M&A deals (valued at $50 million or more) surpassed $40 billion in value.

Scope

• This report provides an overview of the video games theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• It includes global market forecasts for gaming software and analysis of patent activity.
• It contains details of M&A deals driven by the video games theme, and a timeline highlighting milestones in the development of video games.
• The detailed value chain consists of four layers: creation, monetization, distribution, and device.

Reasons to Buy

• The video games industry is an ideal example of a hypercompetitive market. With low barriers to entry and lucrative revenue opportunities, the number of players in the market is continuously increasing. This report provides an invaluable guide to this disruptive theme. It includes comprehensive lists of the leading players across all aspects of the value chain, helping companies identify the right partners.