The Game Industry Is to Reach $200 Billion by 2023

The game hardware/software industry has been under pressure lately all over the world, from the US to China. However, contrary to all the negativity going its way, it’s estimated that this sector’s revenue will reach and maybe even fly over $200 billion by 2023. Besides, last year games received $5.7 billion of funds, which is a record amount.

So remembering all the pressure and issues, why does the industry keep prospering?

Mobile Games as the Driving Force of Prosperity

The gaming industry isn’t one whole thing. It consists of at least 15 sectors, depending on the classification you choose. There are also 8 platform types the games are hosted at, like computers, smartphones, consoles, etc. Besides, there is a plethora of more specific platform types, like the operation systems of those PCs and mobile phones, consoles, etc.

Now let’s focus on mobile games, as they make about three quarters of the overall mobile application revenue, which has, by the way, reached $100 billion last year. Mobile gaming has been giving the industry stable income for years, and long gone are the times when many classic game companies didn’t believe mobile or online games will drive the progress like this.

By the way, a lot of those companies that doubted the progress don’t exist anymore, and it should tell us something. So, if now mobile games bring about $70 billion annually, with the improvement of the devices’ technological capabilities and the popularity of such apps, the number could very well rise up to $100 billion in the matter of years.

So despite all the negativity, the industry is prospering because the mobile games sector is hit-driven. If there’s a new game coming out that become a total hit, some old games begin to flop and just take the finances out of the company for nothing in return, and the sector handles this balance right.

Gaming Hard- and Software for PC Is Also Afloat

The PC sector is the closest in long-term prosperity and potential to mobile games. It consists of four subsectors:

  • PC (physical sales)
  • PC (digital sales)
  • Online PC (subscriptions, IAP, and DLC)
  • PC hardware for gaming

All of these parts are quite prosperous, and if you combine them altogether, you’ll get a pretty powerful industry within the industry.

It might sound complicated, but long story short, mobile and PC sectors bring long-term potential, which is more than short-term problems of pressure. Although there might be slight decrease in the revenue of certain subsectors of the gaming business, but it’s not likely to damage the whole progress.

Shaun Greaves

Blogger of arts and liver of life. Singaporean at heart, but living in the UK. Life is art, appreciate it.
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