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Global games market to make $159.3 billion in 2020

Newzoo's latest report estimates massive $159 billion revenues from gaming in 2020 driven by increases in mobile, console, and PC.

@DeekeTweak
Published Fri, May 29 2020 5:33 PM CDT   |   Updated Mon, Oct 19 2020 8:19 PM CDT

The global games market will make $159.3 billion in 2020, analyst firm Newzoo predicts.

Global games market to make 9.3 billion in 2020 37 | TweakTown.com
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Newzoo has recently released their forecast for 2020's games earnings, and the growth is pretty substantial. The total games industry is expected to make over $159 billion this year across all segments--digital, physical, hardware and accessories--up 9.3% YoY and driven primarily by mobile gaming microtransactions revenue.

According to the report, this approximately 2.7 billion gamers will generate these revenues throughout 2020. Mobile will rake in $77.8 billion, or 48% of the total, dominated by smartphone games like Honor of Kings, Fortnite, and PUBG Mobile.

Console gaming's 729 million population will spend $42.9 billion in 2020, less than it did in 2018, but almost 7% more than it did in 2019. Bear in mind Newzoo adjusted its 2019 console estimations to align with softer demand as gamers wait for next-gen consoles.

PC gaming is on the rise, too. The segment, which includes billion-dollar browser games from titans like NetEase as well as premium games and microtransactions, will pull in $36.9 billion, or 23% of total yearly earnings. PC segment revenues are expected to grow by nearly 5% across its 1.3 billion population.

2020 will see China's return to dominance in games earnings. Newzoo had previously predicted the United States would beat China in games spending in 2019.

"Across all three segments (PC, console, and mobile), almost half of consumer spending on games will come from China and the U.S. in 2020. However, growth will be driven by emerging markets in regions like Latin America and Asia-Pacific in the years to come," Newzoo analyst Tom Wijman said in the report.

Global games market to make $159.3 billion in 2020 36 | TweakTown.com

This is just the beginning of the industry's growth. The firm expects gaming to break $200 billion by 2023 in the height of the next console generation and the pivotal 5G era of mobile connectivity.

"Due to the new generation of consoles, growth in console game revenues will steadily grow every year, although we do not foresee revenues reaching double-digit growth before five to six years into the launch. Mobile gaming will continue to be the fastest-growing segment overall," Wijman said.

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NEWS SOURCE:newzoo.com

Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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