Now more than ever, gaming is at the heart of the entertainment business. The way consumers engage with and through games is continually changing. Not only does this result in more overall engagement, but it also leads to entirely new segments of game enthusiasts. Newzoo’s global games market report 2019 gives an overview of revenue, device use, latest trends and a regional and country viewpoint.
Brands from every corner of the consumer-facing market are seizing the opportunity that gaming presents, especially when it comes to reaching younger generations. In the last decade alone, the years-long stigma against gamers has all but disappeared. What’s more, the past year has seen many brands—including the biggest companies in the apparel, automotive, and even financial services—connect with gaming in bigger and better ways than ever before.
Gaming’s rise to the mainstream, particularly its shift toward more live events, professional athletes, and entertainment spectacles, presents new crossover opportunities for other sectors within the entertainment business. After all, more than 10 million enthusiasts tuned in when the popular DJ Marshmello hosted a concert within the virtual world of Fortnite. This year marks the first time that Netflix had a presence at E3, the world’s largest gaming event for consumers. What’s more, popular game IP is increasingly being adapted for television, and the biggest games rival Hollywood in terms of grandeur, budget, narrative, and revenues.
Business models from general entertainment and games are also becoming intertwined. Subscription-based distribution is now the de facto method of content consumption for music and TV, and gaming is increasingly embracing the model. However, content is still king and lies at the heart of any successful subscription service. This is why we foresee a content gold rush going forward, as companies vie for the rights to lucrative gaming IP. The promise of cloud gaming—allowing players to play any game anywhere, anytime, on any platform—brings us into a platform-agnostic future. In this future, we will no longer argue about what’s the best console, nor the differences between PC, console, and mobile gaming. The only thing that will matter is which services offer the best gaming experiences and content.
The meteoric success of gaming is too impactful for brands to ignore, with more and more huge names, including Google and Netflix, choosing to enter the fray. Google announced its biggest move into gaming in March 2019 when it unveiled Google Stadia to the world, as well as the establishment of its own game studio. It will leverage YouTube’s massive user base to drive Stadia’s success, combining both video and interactive gaming content. Meanwhile, Samsung partnered with Hatch to launch a 5G-powered game streaming service in the U.S., and Apple is testing the waters for its new premium games subscription service, Apple Arcade.
At the same time, the mainstream spotlight also attracts the public eye. New models of content monetisation, pioneered by games, have drawn criticism from the community and politicians alike. The nine-month freeze on game licenses in China last year was perhaps the most impactful consequence. The domestic market is well on the road to recovery, but it has certainly taken a hit, albeit temporarily. In-game monetisation is now the norm in the most profitable games, even more so when subscriptions start to substitute the traditional paid game business model. For publishers, finding the right mix of business models in an extremely dynamic market, with pressure from politics and a diverse game enthusiast community, will be the biggest challenge in the coming years.
The global games market report 2019 includes the following content:
- The global games market
- Key developments towards 2022
- Regional games revenues
- Revenue per device
- Regional revenue by device
- Key global trends
- Special focus topics – a gamer segmentation
- Game companies revenue rankings
- Regional revenue breakdown by country
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