DFC INTELLIGENCE ISSUES LATEST FORECASTS ON GLOBAL VIDEO GAME MARKET, PROJECTS SOFTWARE TO PASS $100B BY 2021
MOBILE GAMES DRIVE GROWTH IN 2016
March 27, 2017
SAN DIEGO, CALIF. – Video Game Industry analyst firm DFC Intelligence has issued its latest forecast for the global video game market that increases its overall outlook for the market driven by greater than expected growth in mobile games. In 2016 mobile game software sales was the fastest growing segment, and by 2021 mobile games are expected to account for $48 billion in revenue, nearly half of total game sales that are expected to pass $100 billion in 2021. The industry continues to experience strong growth even as the console market has struggled in the past year.
“The growth in mobile games was driven mainly by an increase in spending per user as consumers are increasingly able to determine which games provide value,” said DFC Intelligence analyst David Cole. “This improvement in monetization is a core driver of future growth potential given the ubiquity of mobile devices.” A major area of growth is occurring as digital products are able to embrace a more premium business model where consumers are willing to pay top dollar upfront for digital content. This is a major change in the recent mindset where games are given away for free and forced to rely on a freemium business model that simply does not work for many games.”
The PC game market also showed solid growth across all categories, with revenue surpassing $30 billion for 2016. Unfortunately, last year the console game software market was down in terms of packaged game sales and flat when online revenue is considered. However, given a strong lineup of titles for 2017 that will play on both PC and console, as well as with the launch of the Nintendo Switch, console game sales are expected to bounce back in 2017. Overall forecasts for the Nintendo Switch have been raised for the third straight quarter.
The new estimates are part of DFC Intelligence’s regularly updated forecast service which looks at game revenue for PC, dedicated console systems and mobile platforms across over 35 countries and 5 major regions. Sales are split not only by platform but also by method of delivery (digital or packaged) and type of business model.
DFC Intelligence is also proud to announce it has joined as a sponsor of the Game Market Analyzer (GMA), an iOS app designed for game developers to identify the global addressable market for their products. This app was built in conjunction with LAI Game Services and is available to qualified industry professionals. “We designed the Game Market Analyzer app for game developers interested in global markets. Our objective was to create an easy-to-use tool that would help developers find the best opportunities for their games worldwide,” said David Lakritz, LAI’s President and CEO.
About the Forecasts:
DFC Intelligence game industry forecasts are updated throughout the year to account for current trends and new products. The forecasts are available in multiple forecasts that include pdf reports, Excel spreadsheets and online access. Clients can purchase forecasts on a one off or on an ongoing basis. It is also possible to custom pull specific forecasts on a given range.
As an introduction to the service, DFC Intelligence has released a new summary report, Worldwide Video Game Market Forecasts. Additional details about the report including a table of contents and report sample request are available on the DFC Intelligence website. Members of trade, accredited and industry press may request an executive summary and direct briefing with the report’s lead analyst and firm’s CEO. David Cole.
DFC Intelligence (http://www.dfcint.com) is a strategic market research and consulting firm focused on interactive entertainment and the emerging video game, online game, interactive entertainment and portable game markets. Since 1995, DFC has published in-depth strategic market reports and subscription-based research services. DFC research is used by more than 300 leading companies in over 30 countries worldwide.