If you are a video game developer, you know that the video game industry is a growing empire. From the moment you start brainstorming ideas for your next project, to the final moments of launching it onto the marketplace, every aspect of developing a video game is a testament to the creativity and commerce that drives this industry.
But what exactly is the size of the video game industry? How much money does it make a year? These are questions that many people in the industry ask themselves as they work to create their next blockbuster hit.
In this article, we will explore the answer to these questions and more. We will delve into the current state of the video game industry, the growth trends that have led to its rapid expansion, and the future prospects for the industry. We will also examine the impact of the COVID-19 pandemic on the industry, and what this means for developers like you.
The State of the Video Game Industry Today
According to a report by Statista, the global video game market was valued at USD 158.3 billion in 2019. This represents an increase of 6.7% compared to the previous year. The report also predicts that the value of the market will continue to grow at a CAGR of 11.9% from 2020 to 2025, reaching USD 314.8 billion by then.
The growth of the video game industry is not just limited to revenue and value, however. The number of players, the number of games released, and the variety of gaming platforms all continue to grow at a rapid pace. For example, in 2020 alone, there were over 4 billion active gamers worldwide, according to a report by Newzoo.
The growth of the industry can be attributed to several factors. One of the most significant is the increasing popularity of mobile gaming. With the widespread use of smartphones and tablets, mobile gaming has become a major part of the video game market. In fact, in 2020, mobile games accounted for over 50% of all gaming revenue worldwide, according to Sensor Tower.
Another factor driving the growth of the industry is the rise of esports and streaming platforms. Esports have become a major form of entertainment, with millions of people watching professional gamers compete in tournaments and leagues. Streaming platforms like Twitch and YouTube Gaming have also made it easier for players to share their gameplay and connect with other gamers around the world.
The Impact of COVID-19 on the Video Game Industry
As the COVID-19 pandemic has forced many people to stay at home, there has been a significant increase in the number of gamers worldwide. According to a report by Nielsen, gaming was the most watched form of entertainment during the first half of 2020, with over 60% of US households reporting that they played video games during this time.
The pandemic has also led to an increase in online sales for video game hardware and software. In fact, in Q3 2020, global video game console sales were up 17.5% compared to the same quarter in the previous year, according to NPD Group.
The Future of the Video Game Industry
Despite the challenges presented by the COVID-19 pandemic, the future of the video game industry looks bright. The continued growth in mobile gaming, esports, and streaming platforms is expected to drive revenue and value for years to come.
Additionally, new technologies like virtual reality (VR) and augmented reality (AR) are poised to become major players in the industry. These technologies have already found success in niche markets like education and entertainment, and it is likely that they will continue to grow in the coming years.
Another area of growth for the video game industry is cloud gaming. With cloud gaming, players can access high-quality games without needing expensive hardware, as all the processing is done remotely.
