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Plugged In: Analyzing the Global Gaming Industry

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Part 2
Plugged In: Analyzing the Global Gaming Industry PART 2 OF 5

Which Segments Will Likely Drive Gaming Revenue in 2017?

Mobile gaming

In the past few years, gaming giants like Electronic Arts (EA), Activision (ATVI), and Take-Two Interactive (TTWO) have looked to target the digital gaming space. Digital and mobile revenue have grown exponentially. Now, they account for over 60% of the companies’ total revenue.

In 2017, Newzoo expects mobile gaming revenue to rise 23.3% YoY (year-over-year) to $50.4 billion and account for 43% of the total revenue. Under mobile gaming, the revenue generated from tablet and smartphone games is expected to rise 13.4% and 26.6% to $11.4 billion and $39.1 billion, respectively, in 2017.

Which Segments Will Likely Drive Gaming Revenue in 2017?

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BIS Research expects the mobile gaming market to rise from $32.3 billion in 2016 to $58.7 billion in 2023. The key drivers include the proliferation of smartphones, expanding Internet access around the world, and the availability of a diverse range of mobile games.

PC and console

While revenue generated from PC (personal computer) games is expected to rise 1.4% YoY to $32.3 billion, revenue from consoles like PlayStation (SNE) and Xbox (MSFT) might rise 3.7% YoY to $33.3 billion in 2017.

Low entry barriers have helped mobile gaming gain traction among users and an advantage over PCs and consoles. There are also several free mobile games available that enable millions of gamers to compete against each other.

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