Newzoo raised the forecast for the turnover of the gaming market in 2020 to $ 175 billion

At the beginning of the summer, Newzoo revised the forecast upward for the first time due to the pandemic. Now the company has decided that it was too cautious in its estimates. She studied the financial statements of gaming companies for the first half of the year and noticed that some trends penetrated the market earlier than planned. At the same time, analysts write that the COVID-19 pandemic itself has not dramatically affected the behavior of players.

According to new data, the video game market will earn $174.9 billion by the end of 2020. This is 19.6% more than it was in 2019.

What else has changed in the Newzoo forecast?

Revenue by region

• Gamers from Asian countries and North America will still invest the most money in games. The former will account for 48% of total gaming expenses ($84.3 billion, instead of the previously projected $78.4 billion), and the latter — 26% ($44.7 billion, instead of $ 40 billion).
• Chinese and US citizens alone will jointly spend about $85 billion on the games. This is 49% of the total revenue of the industry.

Revenue by segment

• Mobile games will remain the largest segment. But this time it is assumed that they will bring in $86.3 billion, instead of the previously expected $77.2 billion.
• Console revenue will grow to $51.2 billion, not $45.2 billion. This is 21% more than last year. For comparison, initially the segment growth was supposed to be only 6.7%.
• The forecast for revenue from PC titles has changed the least – $37.4 billion, not $36.9 billion. In annual terms, the segment will increase by 6.2%.

Forecast for 2023

Newzoo notes that player engagement is growing year by year. In the first half of 2020, due to the pandemic, gamers around the world were playing more than ever. However, many of them continue to get involved in games even in those regions where the quarantine regime has been abolished.

Analysts suggest that although the industry may feel a decline in interest in games after the end of the pandemic, company revenues will still continue to grow.

In the new forecast, Newzoo indicates that in 2023, the industry’s revenue will reach $217.9 billion. This is provided that the average annual rate of market growth remains at the level of 9.4%.

Also on the topic:

• Newzoo: in 2020, the revenue of the gaming market will be almost $ 160 billionNewzoo: Cloud gaming market revenue to exceed $500 million by the end of the year
• Newzoo: in 2020, the esports market will earn $950.3 million.
• This is $150 million less than expectedIs there any news?