Global games industry estimated to reach $183 billion by 2022
The global games industry is expected to reach $183 billion by the end of 2022, up from $130 billion in 2017. This expectation indicates a compound annual growth rate of 7.1% from 2017 to 2022.
While the console and PC verticals will likely experience slowdowns, mobile, digital PC, and digital console gaming are all set to expand in the coming years.
Take-Two Interactive (TTWO) has also entered the esports space. The second season of its NBA 2K League is underway, with 21 teams participating—up from 17 in season one. The 2019 NBA 2K League draft was held on March 5 this year at the Barclays Center in New York, where 75 players (including the first-ever female player) were selected across 21 teams.
The second season kicked off on April 2, 2019, and attracted sponsorship from AT&T (T), Dell, and Intel (INTC). Take-Two announced that YouTube (GOOGL) would join Twitch (AMZN) as its online streaming partner for all games in season two.
TTWO’s president stated, “We are very excited about the continued progress and growth of the league, which has a long term potential to enhance engagement and to be a driver of profits for our company.”
Newzoo expects the global esports market to exceed $1 billion, a year-over-year rise of 26.7%, for the first time in 2019. Sponsorship is expected to be the key driver with $456.7 million in revenue, followed by media rights with $251.3 million, advertising with $189.2 million, merchandise and tickets with $103.7 million, and game publisher fees with $95.2 million.