Which Countries and Companies Are Driving Gaming Revenue?
China and the US lead in revenue
According to Newzoo, China (FXI) is the largest gaming market globally with annual revenue of $32.5 billion and an Internet population of 814 million. The US is the second-largest market with revenue of $25.4 billion and an Internet population of 260 million. The other top gaming countries are Japan, Germany, and the United Kingdom with revenue of $14.1 billion, $4.4 billion, and $4.2 billion, respectively.
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Tencent is the largest gaming company
Currently, Tencent is the largest gaming company in the world. It reported revenue of $12 billion in 2016. The other gaming heavyweights include Sony (SNE), Activision Blizzard (ATVI), Microsoft (MSFT), Apple (AAPL), and Electronic Arts (EA) with revenue of $7.8 billion, $6.6 billion, $6.5 billion, $5.9 billion, and $4.6 billion, respectively.
Tencent’s revenue rose 17% YoY (year-over-year) in 2016. In comparison, the revenue for Sony, Activision, Microsoft, Apple, and EA rose 33%, 42%, 9%, 32%, and 8%, respectively, last year. EA’s revenue is expected to rise 4.7% YoY.
While the gaming space has several niche players, it’s also targeted by giants like Apple, Microsoft, and Google (GOOG) due to the high estimated growth rate.