Since the 1980s, video games have developed at an outstanding pace. Video games have developed with technological advancements both in computing and elsewhere. Today, video games represent an industry that weighs billions of dollars. Diverse exciting and well-paid carriers have emerged in the video games industry. Video games developers have the best jobs in the world, at least in the eyes of gamers. The quality of games developed today is far better than what we had a decade ago. As a matter of fact, games keep getting better year after year and of course the better they are, the better they sell. The number of games released each year keeps increasing. This year is no exception with a good number of games released or scheduled for release in 2017.
I have not included PC, smartphone and tablet game sales with respect to gaming. No offense to gamers on these platforms. Most of the figures provided here come from Newzoo, a market intelligence provider and from Statista, a market research and business intelligence portal
How big is the video games industry?
I decided to look around to find just how much is the video games industry revenue. How much is it worth and who are those benefiting from it. The amount of money spent every year on video games and consoles is shocking. The video games industry today competes with established industries like the film industry and music industries. To get more insight on how big the video games industry is, I have gathered some figures. These figures show how much the industry has grown and how much money is flowing. Though not exhaustive, this post gives a glimpse of how big and lucrative the gaming business is. There are hundreds of video games developers, publishers, and gaming hardware companies making millions of the dollars every year.
The estimated 2.2 billion gamers around the world are ready to pay the price for any game or hardware that is worth it. The video games industry now attracts both video game lovers as well as investors as there is money to be made.
Video Games Industry revenue
Let’s look at some figures from the video games industry. How much is the sale of games and gaming hardware generating? Why video game developers are popping up everywhere to take advantage of the boom. Why game hardware companies are fighting for market share. According to a quarterly update from Newzoo, the global video games market amounted to US$101.1Bn in 2016. This amount will increase to reach US$108.9Bn in 2017. According to Statista, last year, the video games market in the US was valued at US$17.68Bn, in 2017 it is valued at US$18.4Bn. Consumer spending on games amounted to US$30.4Bn last year. As of March 2017, the video games hardware had recorded a revenue of US$0.49Bn in the US. And this is only in the US.
The game market in China grew from US$ 24.6Bn in 2016 to US$ 27.5Bn this year. Newzoo predicts the Chinese game market will hit US$33.7Bn by 2020 with mobile gaming contributing largely all along. The market leaders make sure to get a good part of the pie. In the past year, Microsoft recorded a revenue of US$85.3Bn. While Sony and Nintendo made respectively US$71.8Bn and yen$92.4Bn (Source: Statista). The video games market has many segments. But the sales of video games and consoles are the main contributors to the video games industry revenue.
Video Game Sales
The sale of video games is the heart of the video games industry and I have to say its in good shape. Despite the tough competition in quality and quantity, millions of games are sold every year. The figures keep increasing and sales are always better than the previous year. Billions are made from video games sales every year. The quality of games better than ever with some trying to mimic reality. As of March 2017, the sale of video games in the US amounted to about US$1.36Bn. In a 2015 report, worldwide video game sales were over $70 billion in 2014 and are expected to grow to US$89Bn by 2018 (Source: Statista).
Video game franchises especially successful ones can bring in millions upon millions for many years. Franchises like Grand Theft Auto (GTA), Need For Speed (NFS), Call of Duty (COD) and many others have brought hundreds of millions of dollars each to their developers. Mobile gaming is a sector of the gaming market that is growing rapidly. This is mainly due to the popularity and explosion of smartphone users around the world.
The gaming hardware market is the next big fish in the video games industry and it is doing quite well. It’s an important contributor to the video games industry revenue. Console makers continue to push the boundaries of technology to make better consoles. The shrinking of the market in recent years has raised and tightened competition. But millions of console are still sold every year. Three companies or so have dominated this market for many years with Sony in the lead. The Sony PlayStation, Microsoft Xbox, and Nintendo consoles are the key players. These companies sell millions and millions of consoles each year and make billions of dollars. To get a clear idea of how important and tough this market is, we note the “war” between Sony PlayStation and Microsoft Xbox. The Chart below from Statista shows how the sales of video games console from 2008 to 2016.
The video games industry is sure way bigger and generates more money than what is shown here. But this post is to give an idea the video game industry represents. How money is flowing into the system and keeps it turning. This is a good thing. Without it, we will probably not have great minds coming together to conceive games. We will not have Sony, Microsoft and Nintendo work so hard to provide the kind of consoles we play on today. Many gamers and others have found their dream careers in the gaming world. Some as developers, designers, others as artists, engineers, and even professional game testers.