Newzoo: Microtransactions to make $117 billion in 2020

Microtransactions are expected to rake in 77% of 2020's total global games earnings.

Published Fri, Jun 26 2020 10:56 AM CDT   |   Updated Tue, Nov 3 2020 11:43 AM CST

The global games market is expected to rake in $159 billion in 2020, but 77% of that will be from microtransactions and in-game spending, analyst firm Newzoo reports.

Newzoo: Microtransactions to make 7 billion in 2020 2 |

Digital game sales are on the rise, but even those full game purchases are eclipsed by in-game revenues like microtransactions. According to Newzoo, mTX and other digital in-game purchases will make up 74% of 2020's total earnings, or over $117 billion. Free-to-play mobile gaming will predictably make up the lion's share of revenues.

Newzoo: Microtransactions to make $117 billion in 2020 1 |

Newzoo predicts the global games market will generate $159.3 billion in 2020, and monetization is expected to grow incrementally over the years. By 2023, mTX is expected to make up 77% of all yearly revenues, or a massive $154 billion. This will ultimately change how games are developed and monetized, whether it be through direct piecemeal microtransaction purchases on a store via cosmetics or convenience items, or through battle pass-style seasonal purchases.

The firm says nearly all of mobile games revenues are from microtransactions:

"In fact, 98% of all mobile game revenues were generated through in-game transactions. We forecast this to edge ever closer to 100% as the years progress. Nevertheless, there will likely always be a market for paid games on mobile."

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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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