Newzoo: Microtransactions to make $117 billion in 2020

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.

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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.

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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."