The Videogame Market

A growing market

The videogame industry is part of the broader entertainment market; movies, printed press, TV and music share some the same features and dynamics. The global videogame market has seen intense growth in the last decade and in 2020 will reach $159.3 billion, up by 9.3% compared to the previous year. China retains its position as the world’s largest gaming market in 2020 with 55% of the total global palyers (1.5 bn).

The videogame market is an everchanging market with significant growth rates, linked to the continuous technological evolution. Today, gamers play not only on PC and traditional consoles – Sony PlayStation, Microsoft Xbox and Nintendo Switch –but also on mobile platforms such as smartphones and tablets, and through social networks.

The increasing distribution business on new channels, across all ages and genres has led to the development of new products dedicated to a heterogeneous audience. Through technology and the continuous study of player behavior, we are able to use algorithms that help generate intelligent, responsive behavior to create an immersive game experience that reacts to player’s choices to make the videogame more interesting through the environment and characters adapting to constant changes within each game.

International Videogame Market

By device type and segment with year on year growth rates

$77.2 Bn

Mobile game revenues in 2019 will account for 48% of the global market.

Women represent 46% of the total number of videogame players worldwide, and the average players’ age across all players is 34 years, with 70% represented by players older than 18 years. The total revenues from videogames reached $145.7 billion in 2019, and is projected to reach $159.3 billion in 2020 by the Newzoo 2020 Global Games Market Report. More than 48% of the total ($77.2 billion) will come from smartphone and tablet video games, followed by console ($45.2 billion) and PC video games ($36.9 billion).

The videogame market is in a constant evolution; in past years this allowed the change from retail distribution to digital distribution on marketplace platforms including Steam, Epic Games store, PlayStation Store, Microsoft Store and also the App Store and Google Play. The market trend is always more oriented to digital platforms, and companies are implementing different ways to enjoy videogame content, like Streaming and Cloud Gaming.

2.7 billion

The total number of video games players worldwide, based on Newzoo recent estimation, will reach 2.7 billion people by 2020

Cloud Gaming, also called Gaming On Demand, is a type of online gaming. It aims to provide end users frictionless and direct playability of games across various devices, with no need of a specific hardware, nor a physical copy of the videogame. It allows access to videogames anytime and anywhere and provides constant platform updates. This videogame streaming can be offered through a subscription service or through “on demand” videogame purchases. The main streaming services currently available are Microsoft’s Game Pass and Sony’s PlayStation Now, together with the recently released Apple Arcade and Google’s cloud gaming platform – Stadia.


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