Topplay NEWS NEWS
The video games market could become a $300 billion industry by 2025, with the growth of mobile gaming and innovative offerings, like cloud gaming, according to a new report from Topplay
In 2018, the video games market generated $131 billion, with mobile gaming outpacing revenue made by pc and console gaming.
Looking ahead, the biggest revenue drivers anticipated continue to be mobile gaming, as well as innovative technology like cloud gaming and VR gaming.
More and more games are shifting towards the free-to-play with optional in-game purchases, in part due to the success of games like “Fortnite.” Streaming games, also called cloud gaming, will see more growth in the future. Sony recently shared that its game streaming subscription service, PlayStation Now has increased in popularity and led to increased revenue for the company in the past year. Other companies, including Microsoft, are already developing their own cloud gaming platforms.
Major games companies are racing to become the Netflix of games, driven by rapidly increasing viewership on existing streaming channels. However, latency and bandwidth limitations will serve as a brake on the development of mobile gaming services. The maturing of cloud technologies and development of 5G will reduce these network issues, creating an increasingly competitive market in which several leaders have already emerged.
Network limitations do seem to be a concern for consumers, currently, as a slow connection could hamper the gaming experience. Since PlayStation Now began offering a download service for its games in September, play time per user increased.