Video games: the mobile set to become the number one source of income in 2016

by bold-lichterman

The curves will cross. As of this year, revenues generated by mobile games are expected to exceed those on PC or consoles, according to a study of the Newzoo firm. At 36.9 billion dollars, their growth will reach 21.3% over one year in the world. This performance allows mobile games (smartphone and tab) to capture a larger share of the sector’s global turnover (37%) than consoles (29%) or PCs (27%). This hierarchy upsets the established order since consoles were the main source of income in the industry last year.

In this context, the total market for video games is expected to weigh 99.6 billion dollars this year, against just under 92 billion last year. And the growth of the sector should continue at least until 2019, according to projections by Newzoo which expects a compound annual growth rate of 6.6% by 2019. A cruising speed that should allow the video game industry to reach 118.6 billion in revenue in 2019, according to the report.

Strong growth in APAC

The market is notably driven by Asia-Pacific. With an expected growth of 10.7% in 2016, the region is expected to account for 47% of revenues generated by the video game industry, half of which comes from China. In this country alone, mobile games should even represent 10 billion dollars this year, up 41% compared to 2015. In the end, Newzoo forecasts that the Chinese games market will reach 28.9 billion dollars – including 13 billion dollars. 9 billion on mobile – in 2019, compared to 24.4 billion this year.

Faced with the rise of mobile games, historical publishers are trying to adapt in order to respond to new consumer practices. In November 2015, the American group Activision Blizzard (from which Vivendi recently completely separated) bought King, the company behind the very popular “Candy Crush Saga”, for an amount of $ 5.9 billion.