Video games and interactive entertainment market in 2018: mobile, computer, consoles, e-sports, VR and video content between YouTube and Twitch.
In 2018, video games and interactive entertainment generated $ 91 billion worldwide. First of all, 2018 was the year of the emergence of virtual reality driven by PlayStation VR, followed by HTC Vive and Oculus Rift. To make the best use of the device and introduce games in 4k resolution, Sony released the first „middle generation” console: the PS4 Pro, with twice the computing power compared to the older PS4, now available in Slim housing more compact.
Meanwhile, the PC market has seen an increase in average GPU performance by 40% with an average consumption of 20% less. New Nvidia and AMD Pascal Polaris architecture that knocked down the cost of mid / entry level graphics cards: Nvidia GTX 1060 and AMD Radeon RX 480, which can be „VR Ready” and together to provide high performance at 1080p and 60 fps at an affordable price (220-230 €).
Meanwhile, the PC market has seen an increase in average GPU performance by 40%
2017 will be another year seriously, not only for a large number of titles coming out in the first months of the year, but above all for coming on the Nintendo console: a hybrid with a switch, and beyond the generation of Microsoft console: Xbox Scorpio.
Meanwhile, observing the graphs summarizing the SuperData study on revenues generated by the entire gambling industry in 2018, we can get a lot of interesting observations and considerations:
The video games industry and interactive entertainment revenues in 2018
Consumers spent nearly $ 41 billion on mobile games themselves, dragged by Pokémon GO and Clash Royale. The smartphone gaming market is very mature and is increasingly approaching the volumes generated by traditional games on the PC and the console, thanks to new productions of increasing value.
Computer games are confirmed as the leader of the domestic market with a turnover of 36 billion dollars. Together with free-to-play, we find the highest rankings MMO, from the historical League of Legends to the novice Overwatch.
The first year of virtual reality was unforgettable, especially for manufacturers of dedicated equipment. The high starting price of the spectators and the lack of a composition of titles strong enough to determine the success of the capillary, meant that flying at low altitudes was related to the innovative VR market, both on the console and on the PC.
Despite its relatively small size (around $ 900 million), e-sport is becoming a reference point for publishers, TV shows and advertisers. Producers of video games such as Activision, Riot Games and Electronic Arts, which generated good profits from the sale of television rights and, as expected by Joost van Dreunen (CEO of Superdata), we expect further growth in 2017.
Let’s analyze in more detail all the charts sector by sector.
If it is true that the 2018 phenomenon was certainly GO Pokémon, which generated a peak of USD 203 million profit in August for a total of almost USD 800 million in a year, the combined still ranks only sixth in the general classification. However, it should be taken into account that the game, the first actually expanded on Pokémon and developed by Niantic, was published by Nintendo only in the middle of the year.
Clash Royale is another year’s phenomenon from $ 197 million in the month of the premiere (March) for a total collection of $ 1.1 billion annually, bringing games to the podium in third place, just behind Monster Strike and Clash of Clans,
As you can see from the chart, the mobile sales dragged from arrogance especially from the Asian market (driven by China), which generated $ 24.9 billion revenue, more than three times the second largest market in the world, North America (US-led) from $ 6, 9 billion. The old continent is in the third position with a business turnover of USD 5.7 billion.
Free PC market
- The graph of the free PC game leads us to the first clear consideration: the new MOBA on the market is very hard to dethrone games with an established position and definitely at the top of the ranking.
- In fact, first of all, we find a simple League of Legends with revenues of about $ 150 million a month. In second place was Dota 2, which raised 23.4 million dollars a month. Both left a much smaller market share for Heroes of The Storm, SMITE and Paragon.
Considering generally MMO games, free-to-play dominates the market without a doubt, generating six times the profit from pay-to-play, in particular thanks to MMORPG, which in its entirety (free-to-play and pay-to-play) – play) earned 21.1 billion dollars, which is more than half of the entire PC market.
Also in this case revenues are dominated by the Asian market, which adds four times the value of the second place by 12.5 billion dollars, in this case in Europe by 2.8 billion dollars, and then in North America, which stops at the total value of 2, $ 2 billion.
Video games market (computer and console)
Computer games market on PC in 2016. The console games market in 2016
Considering the „traditional” video game market, we can see that the difference between total PC profits compared to console gains is in favor of the latter, though not too much. Of course, the total number includes the revenues of all premium consoles on the market, which earned 6.6 billion dollars compared to 5.4 billion US dollars.
The ranking of the best-selling titles is more or less what we expect. At the top of the console market we have Call of Duty: Black Ops III, FIFA 17 and Grand Theft Auto 5, and then The Division and Destiny. While Overwatch appears on the PC market, followed by Counter-Strike: Global Offensive, Guild Wars 2, Minecraft and Fallout 4.
Data on the geographical location of revenues are even more interesting. The PC market is at the top of our region: Europe has $ 2.7 billion in revenues, which is far below $ 1.8 billion in North America. In third place is the South American market with revenues of USD 0.4 billion, and the Asian market is disappearing from the radar, only 0.2 billion dollars.
Challenge between North America and Europe, up to USD 2.9 billion and USD 2.6 billion in revenue on the console market. In third place we find the Asian market, but with a business volume of 0.6 billion dollars, much smaller than the western market.