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 GlobalData.
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.
Ed Thomas, GlobalData’s principal analyst for Technology Thematic Research commented in the press release detailing the new report, and explained how innovative technologies contribute to the business growth of the video games industry.
“Today’s video games industry is in the throes of a huge transformation from a product-oriented business to an as-a-service model,” Thomas said. “At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation, while new business models like support for in-game micropayments are already changing the economics of 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.”
“Cloud gaming is evolving into a global phenomenon,” Thomas explained. “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