The international video and video games market will produce $152.1 billion in 2019, up 9.6% over last year as video gaming morphs into material and interaction, according to a report by gaming analytics firm Newzoo on Tuesday.
It is “the complete merging of different forms of digital entertainment all coming together,” Peter Warman, president of the Netherlands-based firm, informed Reuters in a phone interview.
As games become seemingly common, they are becoming tools for connectivity, enabling players to talk with friends and fulfill brand-new people. Fortnite publisher Epic Games, in specific, thinks in gaming as a communication platform, Warman said.
Facebook is launching its own video games through its Facebook, WhatsApp, and Messenger apps, as is Tencent Holding’s WeChat in China.
On June 5, Words With Friends designer Zynga released a new battle royale game solely on the new gaming platform of Snap, home of messaging app Snapchat.
This year, the United States will surpass China for the largest gaming market by revenues – $36.9 billion versus $36.5 billion – due to growth in console video games and the influence of Fortnite in America and the echo of a previous governmental freeze on new video games in China.
“I believe it’s a short-term glitch,” said Warman of the Chinese market, due to the fact that there are many video games in the pipeline awaiting approval.
Japanese companies are also rebounding, in part because of nostalgia for retro video games.
A revamp of Final Fantasy VII, initially released in 1997 by Japan’s Square Enix Holdings, is anticipated to be released next year, for instance.
Nintendo and Bandai Namco Holdings, developer of the timeless Pac-Man video games, are ranked 9th and 10th on Newzoo’s list of leading public video gaming companies by income.
“It’s taken a very long time but they’re back,” Warman stated, after some Japanese developers were slow to accept mobile video gaming and shift company designs from paid video games to free-to-play.
Mobile gaming on smartphones and tablets, versus PC and console video games, remains the biggest platform, producing $68.5 billion, or 45% of the worldwide market, the report stated.
Newzoo surveyed more than 62,500 invite-only participants from February to March throughout 30 markets, to name a few information sources. It is the firm’s 9th such yearly report.
The report leaves out earnings from e-sports, or formalized expert video game competitors. Newzoo reported in February that international esports earnings would strike $1.1 billion this year.