Future of Gaming Industries and Their Growth

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Good news for video game publishers, developers and builders. As a new study predicts that the video game industry will generate more than $ 235 billion in 2022. According to Tech News, about 75% of this figure will be generated by software sales, but also all DLC and micro-transactions. In the coming years, it is therefore the mobile and the PC that will be the driving forces for the industry, and which will continue to dominate the market. For example, the performance of the mobile gaming market is estimated that its contribution to the overall turnover of the video game industry could be $ 60 billion in 2019, and $ 100 billion in 2022.

Future of Gaming Industries and Their Growth

 

What are the sales factors?

Over the same period, sales of PC hardware (whether complete computers, components or peripherals) are expected to generate $ 35 billion in 2019, and $ 45 billion in 2022. Similarly, PC games online (including subscriptions, DLCs, and micro-transactions) could see their turnover jump from $ 25 billion in 2019 to $ 35 billion in 2022, while physical copy sales will represent one of the smallest segments of the market alongside e-Sports, internet browser games and VR hardware sales. For games on consoles (software and hardware), the forecast is based on the fact that this sector will represent only one sixth of the total market. Although VR and AR (Augmented Reality) should see their market share increase, it will remain well below the traditional game on PC, mobile or console.

The year 2019 is already under the best auspices with between $ 165 and $ 170 billion in revenue generated, still predominantly through mobile gaming and PC gaming (hardware and software). To capitalize on these good prospects, the players invest heavily since more than 2 billion dollars have been distributed to various start-ups, mainly focused on mobile development, VR and AR. With regard to the countries, if Europe and the United States represent a big market, it is the growth in Asia and particularly in China which could be one of the determining factors of the future growth.

Video games too powerful for consoles

The art technological advances in the industry have become too fast for non-adaptive architectures of current consoles. As their components are fixed, it is impossible for them to support the new and more powerful graphics engines. With a life cycle of more than 5 years, they constrain the possibilities offered to developers. They are forced to limit the performance of their games so they can run on our aging consoles. While both Sony and Microsoft have offered enhanced versions of their flagship machines, this is not a major evolution. The PlayStation 4 Pro and Xbox One X releases “mid-cycle” consoles. They offer significant improvements (play in 4K for example), but have nothing of a break. Indeed, they remain dedicated to the same games as “classic” consoles.

Practical challenge in the market

The challenge for the consoles of tomorrow is to be able to adapt in real time to technological developments. To do this, the architectures of the next consoles could be based on the principle of cloud computing. Theoretically, your console could thus be only an interface between your screen and a calculation server, located in a data center far from your home. Nevertheless, it is likely that the builders do not go that far. Such a break could indeed scare or lose the consumer, requiring a high-performance Internet connection for example.

The marriage of video games with cloud computing

The arrival of “hybrid” architectures, namely based on cloud computing that reinforces or assists the console components for the most complex operations, is not to be ruled out. A joyful prospect since the graphics would then have nothing to envy to the most beautiful special effects of cinema. Regarding Virtual Reality and other Mixed Realities, this gain in power would also be welcome. These latest applications are indeed very resource intensive.
Finally, it is interesting to note the strategic shift recently made by Microsoft. The American company has announced that its priority is to become the true world leader in the cloud. For the first quarter of 2019, the revenues of this one increased by 93% compared to last year. The cloud now accounts for $ 9 billion for Microsoft, nearly one-third of its total revenue.

Physical games that resist

The dematerialized surplus still represents 70% of the overall turnover of the sector. The good old game box is resistance to the time of streaming and download. Good news for old traditional distribution networks. The game consoles have a hard tooth despite their death many times announced, with the rise of the smartphone and tablet. The physical console software represents 31% of the market. So, you can say that the world of video games are still booming and, it will not stop until it makes the real difference.

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