The video game industry analytics company Newzoo has revised its market forecasts upwards in response to the COVID-19 pandemic. The company now estimates that global game industry revenue will reach $159.3 billion in 2020, and that the esports industry will generate roughly $1.06 billion in revenue. The Chinese and American gaming markets combined will comprise nearly half of consumer gaming revenue.
The forecast represents a 9.3 percent increase in game industry revenue year-over-year.
- Mobile games are forecast to lead the industry with $77.2 billion in revenue, an increase of 13.3 percent year-over-year.
- Console gaming is expected to hit $45.2 billion in revenue, a 6.8 percent increase.
- PC gaming revenue will grow 4.8 percent to $36.9 billion.
The firm offers several reasons for its bullish mobile forecast. First, as coronavirus has shuttered PC cafes, many PC gamers have turned to mobile devices. Newzoo also reasons that while mobile game development has slowed, it’s still progressing quicker than console game development because it is generally less complex. In total, Newzoo estimates there will be 2.7 billion gamers this year.
Newzoo revised its 2020 esports forecast down as a result of the pandemic. The analytics firm now estimates esports revenue to hit $1.06 billion, down from $1.1 billion. Newzoo points out that the adjustment was not due to an anticipated reduction in consumer demand for esports, but purely because the pandemic has forced organizers to delay or cancel their tournaments.
The company also revised its long-term esports forecast slightly. Newzoo now estimates the esports industry will reach $1.6 billion in revenue in 2023, up from $1.56 billion.
By 2023, Newzoo anticipates total game industry revenue will hit $200 billion, propelled by rapid growth in the mobile games sector.
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