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Gaming Industry to Mark Another Revenue Record ($180.3B) This Year

The gaming industry has marked another year of record revenue in 2021, according to Newzoo, reaching $180.3 billion. That translates to a growth of 1.4% over the past year, which benefited from global lockdowns caused by the COVID-19 pandemic.





Tom Wijman, Newzoo’s Head of Reports & Forecasting, explained:

We started the year thinking it would be impossible for the market to match 2020, as delays for AAA releases and ongoing supply shortages for new gaming hardware gave people little opportunity to spend. Yet, nine months into 2021, we realized that the market would grow again. If anything, this shows that the games market is definitely no longer the seasonal, hit-driven business it once was. New gaming content no longer means new games or new hardware—a new season pass is just as likely to drive revenues.

The gaming industry's cloud market also experienced significant growth this year, registering over twice the revenues of last year, with Newzoo predicting even bigger growth ahead in the next three years.




Market Consultant Guilherme Fernandes stated:

The cloud gaming market is well-positioned to meet the strong growth that Newzoo predicts for next year and beyond. Many consumers will search for alternative ways to play new releases, as gamers struggle to upgrade their hardware and new components will be hard to come until late 2022 at least. Cloud gaming is a perfect solution for these players

That's not all, as the eSports and live streaming sectors of the games industry have also expanded throughout 2021. eSports revenues grew 14.5% year-over-year, while the games live streaming audience got bigger by 12.7% compared to 2020, with Twitch generating 23.3 billion hours of live viewership thus far in 2021, an all-time record for the platform.









 

kingfey

Banned
"The cloud gaming market is well-positioned to meet the strong growth that Newzoo predicts for next year and beyond. Many consumers will search for alternative ways to play new releases, as gamers struggle to upgrade their hardware and new components will be hard to come until late 2022 at least. Cloud gaming is a perfect solution for these players"

Xcloud is gonna skyrocket next year.
 

reksveks

Member
Mobile Revenue excludes advertising; whilst nice seems like a chunky revenue missing (but happy to be corrected)

Not by much,wouldn't be too worried about it. I think most publishers at this point understand a dedicated audience on console is more sustainable than that what they would get on mobile so they treat it as a secondary income source.

Hmmm, I would need to double check the other big boys and where this report from statstica has got their data from but i think the following is about right:




For all the people whom complain why SE puts some much time into their mobile games during E3 and Gamescom, this is why; it's half of their business.
 
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kingfey

Banned
Nothing new there.

For every single console game there`s hundreds of mobile games, though. The average individual share for mobile games is tiny.
That is false. Console games shares are tiny compared to mobile games.

You have more 700m phones in the world, which can access these games for free, compared to console, who have to spend certain money to get these games.

Not only that, even the lowest indie mobile games bring more money, compared to normal indie games.
 
Nothing new there.

For every single console game there`s hundreds of mobile games, though. The average individual share for mobile games is tiny.
It is kinda new. It only happened in 2018 once and never before. Now again in 2021 and from now on probably every year.
 

CitizenZ

Member
So just so im clear, it says it also takes into account services so that would be based on MS- 3.6 billion in revenue for GP(based on 20 million) and 9 Billion for xbox live subs thats 12.6 billion just in services. That brings that 50 billion now to 38 billion. Thats just from 2 services and only from MS. Ouch.

So Sony as of Sept has 47 million PS + subs- so they equates to 5.5 Billion so that now brings the overall console market to just 33 Billion minus services.
 
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Woopah

Member
They are the same, as in portable.
Playing browser games on a PC and playing games on a PS4 are both things you do while stationary, but they are still very different markets.

Switch sells a lot of $60 dollar software which is not something you find a lot of on smartphones. The affordability levels are not the same at all. On top of that, the cheapest and most portable Switch model is noticeably less popular than the more expensive ones that connect to a TV.
 

reksveks

Member
So just so im clear, it says it also takes into account services so that would be based on MS- 3.6 billion in revenue for GP(based on 20 million) and 9 Billion for xbox live subs thats 12.6 billion just in services. That brings that 50 billion now to 38 billion. Thats just from 2 services and only from MS. Ouch.

So Sony as of Sept has 47 million PS + subs- so they equates to 5.5 Billion so that now brings the overall console market to just 33 Billion minus services.

Sony's total network service revenue for FY2021H1 is 202,430M JPY so ~ 1.78B USD; their annual number for FY20 was 383,012M JPY so ~ 3.35B USD.

Can't do anything like the same for MS sadly.
 
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Pagusas

Elden Member
so if i'm reading that right, the hardcore gaming market actually contracted about 8%? Sad :(

Both PC and Console sales are down YoY
 
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Shubh_C63

Member
whale Mobile games were GaaS long before entire AAA industry followed suit. No wonder.

I expected more B$$ to be honest.
 

Great Hair

Banned
2014

2016

2020

 
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yurinka

Member
tfw mobile is bigger than consoles and PC combined
Yes, it has been the case for a while. It isn't the first year.


Here it looks like they're making shit up

The other graphs make sense, but this one doesn't make sense at all. Here we have a picture of the analyst who made it:





2014

2016
Seems that Newzoo's Jamaican analyst did work at Intel before joining Newzoo xDDDD


Is this global or just the US??
Worldwide.

Worldwide = $180B, USA (top 2 country) = ~$39B
 
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Stuart360

Gold Member
I think its worth mentioning that the mobile number includes money spent on marketing (which is a lot with most mobile games being f2p), while PC and console doesnt.

Also i'm sure mobile had a larger percentage last year.

EDIT. I missread what it said, it DOESNT include advertizing on mobile.
 
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Plantoid

Member
Here it looks like they're making shit up
Why? You underestimate the power of accessibility...

My 8 year old nephew can't tell the difference playing xcloud in his old Samsung phone (it's a 2gb ram phone)

3 years from now 5g will be widely available...
 

Stuart360

Gold Member
Why? You underestimate the power of accessibility...

My 8 year old nephew can't tell the difference playing xcloud in his old Samsung phone (it's a 2gb ram phone)

3 years from now 5g will be widely available...
Yeah i mean there is a chance this could be the last console gen, depending on hoiw long covid lengthens this gen. Now i dont actually believe that, i feel there will be one more physical gen after current, and then one or both of Microsoft and Sony will go streaming only. People have to remember we are talking like 14 or 15 years into the future here.
As much as many of us dont want streaming, its only a matter of time until it happens.
 

yurinka

Member
I think its worth mentioning that the mobile number includes money spent on marketing (which is a lot with most mobile games being f2p), while PC and console doesnt.
Newzoo's graphs are about revenue generated by games via all their revenue sources (pay to own a game, DLC, microtransactions, in-game ads, season passess...) in all platforms. They don't mention their budgets for development or marketing.

Yeah i mean there is a chance this could be the last console gen, depending on hoiw long covid lengthens this gen. Now i dont actually believe that, i feel there will be one more physical gen after current, and then one or both of Microsoft and Sony will go streaming only. People have to remember we are talking like 14 or 15 years into the future here.
As much as many of us dont want streaming, its only a matter of time until it happens.
This won't be the last generation of consoles. Sony, Nintendo and Microsoft confirmed to be working on next gen consoles. Specially Sony and Nintendo won't leave consoles when they are breaking gaming history records and streaming still is a tiny niche, that would be stupid.

5G coverage will take over 10 years to be mainstream across the world, and a big portion of the world has shitty connections or even no (or at least not decent) connection where they play. On top of that, they'll have to continue improving their catalog, business model and streaming technology. I think streaming will take a very important role in gaming's future, but I think we'll have to wait over a decade to see it becoming mainstream. And as happened with mobile, I think it will coexist with console gaming, which even if mobile gaming market grows way faster, console gaming market is growing too.
 
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Stuart360

Gold Member
As in-app ad revenue? I don't think it does

Or marketing spend from app devs to promote their games?
I missread what it says in the box on the right of the first pic. I thought it said 'Mobile includes advertizing', but it says it doesnt.
My mistake.
 
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carlosrox

Banned
global lockdowns caused by the COVID-19 pandemic.

*caused by the Governments


So if they expect there to be growth for the next few years does that mean there's gonna be lockdowns and pandemics they're gonna keep pinning the growth on? Doesn't make sense. Gaming has just been getting bigger every year with or without lockdown bullshit.
 
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Stuart360

Gold Member
Newzoo's graphs are about revenue generated by games via all their revenue sources (pay to own a game, DLC, microtransactions, in-game ads, season passess...) in all platforms. They don't mention their budgets for development or marketing.


This won't be the last generation of consoles. Sony, Nintendo and Microsoft confirmed to be working on next gen consoles. Specially Sony and Nintendo won't leave consoles when they are breaking gaming history records, that would be stupid.
Yeah i missread something. I edited my post.
 

Azelover

Titanic was called the Ship of Dreams, and it was. It really was.
I'm sorry I don't have time to read everything now. But are they counting Smartphones as dedicated videogame hardware?
 

TransTrender

Gold Member
Why? You underestimate the power of accessibility...

My 8 year old nephew can't tell the difference playing xcloud in his old Samsung phone (it's a 2gb ram phone)

3 years from now 5g will be widely available...
I don't think 5G will be a silver bullet in the largest markets if it's still expensive, dependent on high end phones, and of course data limits.
Too bad the quality has been worse than ever


If the current shortage of chips and GPUs keeps up until 2024 or so, this may be end up being an accurate estimate.
I hope not though.
I don't think the end user experience, especially on mobile, will greatly improve in the next two years. It still seems like a 'bad' way to play games.
 

Woopah

Member
*caused by the Governments


So if they expect there to be growth for the next few years does that mean there's gonna be lockdowns and pandemics they're gonna keep pinning the growth on? Doesn't make sense. Gaming has just been getting bigger every year with or without lockdown bullshit.
Gaming got a huge boost from the pandemic lockdowns last year. The industry would not have grown so much without them.
I'm sorry I don't have time to read everything now. But are they counting Smartphones as dedicated videogame hardware?
Smartphones are in the mobile segment. Dedicated hardware is in the console section.
 

kingfey

Banned
That's very funny. PC gamers spend grands on PC hardware then spend pennies on games. Consoles are keeping AAA gaming afloat as it seems despite being very few vs PC, and mostly Sony.
Its funny you said Sony, when its Nintendo which makes the most profit.

PC Market is suffering from split market. Until ea, Activision, and EA comes to other PC stores, I doubt they will sell higher.

Steam alone has ps4 numbers. Yet, those companies avoid that store.
 

Bo_Hazem

Gold Dealer
Its funny you said Sony, when its Nintendo which makes the most profit.

PC Market is suffering from split market. Until ea, Activision, and EA comes to other PC stores, I doubt they will sell higher.

Steam alone has ps4 numbers. Yet, those companies avoid that store.

"Waiting for sale" is trendy among PC gamers. Also I said AAA games and Nintendo barely has any game exceeding $50M budget, if any. Talking about state-of-the-art tech, expensive production projects, true gen leaps.
 

kingfey

Banned
"Waiting for sale" is trendy among PC gamers. Also I said AAA games and Nintendo barely has any game exceeding $50M budget, if any. Talking about state-of-the-art tech, expensive production projects, true gen leaps.
AAA games would be Sony. No doubt on that one.

Waiting for sales is what provides devs long term sales. And because they are fully digital, they still get their profits, compared to consoles.

One advantage consoles have is the 1 store. Only console manufacturers stores are on that system. Unlike pc, with multiple stores.
 

Woopah

Member
But gaming is just getting bigger and bigger period. And it's expected to continue so...
Well exactly. What they are saying is:

2020 - The console markets grows much more year on year than it otherwise would have done, due to the boost it gets from the pandemic lockdowns
2021 - The console market shrinks year on year, because this in this period it didn't get as much of a pandemic boost.
 

ArtHands

Thinks buying more servers can fix a bad patch
Console players love paying for $70 games and online fee while PC players get free games from Ubisoft, Epic, GOG etc and free online

Credit to console players for sustaining those AAA publishers while PC players reap the benefits
 
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kingfey

Banned
Console players love paying for $70 games and online fee while PC players get free games from Ubisoft, Epic, GOG etc and free online

Credit to console players for sustaining those AAA publishers while PC players reap the benefits
P.s.
Your console owners are giving away games for free, in a subscription model.

Talk to them 1st.
 

kingfey

Banned
you mean "free as long as you keep paying to subscribe" not actual free.
Same shit. Not to mention, console players get used cheap disc, and those aren't going to the devs.

At least pc players pays the devs full profit. Since they get 70%/30% of digital sales on pc
 
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