Huge growth expected in the mobile gaming space
In the previous part of this series, we saw how the mobile platform isn’t actually expected to threaten EA’s (EA) dominance in the console and PC space. However, we can’t deny that growth for PCs and consoles is decreasing compared to mobile gaming. Microsoft’s (MSFT) Xbox One and Sony’s (SNE) PlayStation are the dominant players in the console space.
According to Digi-Capital, an investment bank, mobile games could drive the global game industry’s software revenue to $100 billion by 2018. The bank expects mobile games to reach $38 billion by 2018 at a compound annual growth rate or CAGR of 22%. The graph below shows the growth expected in various gaming platforms.
Realizing the opportunity provided by smartphones, EA has introduced new options
Smartphones and tablets play an integral role, powering companion apps that allow gamers to stay in contact with their friends, communities, and characters even when they’re on the go. Realizing this opportunity, in Battlefield 4, Electronic Arts has given an option to gamers who don’t have access to a console or to their PC to become “Commanders.” Commanders have a direct influence over the way a match evolves and can support their fellow gamers.
Electronic Arts believes that more opportunities will emerge to integrate consoles and mobile devices in various ways.
Correction: When we originally published this article, it mistakenly indicated that Digi-Capital expected mobile games to drive the global game industry’s software revenue to $200 billion by 2017 and that the mobile and online gaming industry could reach $60 billion by 2017 at a CAGR of 60%. However, Digi-Capital’s current estimates are for 2018. Further, the forecast software revenue by 2018 is $38 billion, and the industry forecast by 2017 is $38 billion at a CAGR of 22%. We have since corrected this misinformation and we regret this error.