October 19, 2016

SAN DIEGO, CALIF. – Video Game Industry analyst firm DFC Intelligence has issued its latest forecast for the global video game market indicating that growth in the game industry is being driven by digital sales of games and high-end hardware. In 2016 overall game software sales are expected to be up 8% to $79 billion. This is despite a slowdown in sales of packaged game software. By 2020, global video game software sales is expected to reach $98 billion with a CAGR of over 5%.

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.

According to DFC Intelligence analyst David Cole, “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 game industry is also seeing growth driven by premium game hardware, including high-end PCs and new game systems. “The October launch of PlayStation VR is expected to bring renewed excitement to the video game console category,” said Cole. “This holiday season PSVR is really about educating mass consumers on this exciting new category.” Driven by its current leadership position and its new VR system, DFC forecasts Sony to continue to be a clear market leader for the next several years. However, the new forecasts are cautiously optimistic about the potential for a new system from Nintendo. “Nintendo has a golden opportunity to reach a game consumer that is currently not being well targeted by Sony or Microsoft systems.”

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.

Through the end of 2016, DFC Intelligence is offering a special on its 2017 Forecast service that includes both current 2016 forecasts and upcoming 2017 forecasts.  For information on this package contact DFC at info@dfcint.com.

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.

Robert Nolan
(804) 938-0030