Juniper Research: the gaming market will exceed $200 billion by 2023

Analysts from Juniper Research predict that the volume of the video game market will reach $217 billion in three years. The main drivers of growth will be cloud gaming, subscription services and mobile.Key points from the Juniper Research study

• the market will continue to move towards subscriptions and other models aimed at regular recurring purchases. At the same time, retail revenue will decrease by 5% by 2023;by the end of 2020, the video game market will amount to $155 billion.
• Given the growth rate, it will grow by $60 billion by 2023.;Most of the revenue will be distributed among the three main markets: the Far East and China, North America and Western Europe;
• the share of cloud gaming and other subscription services will continue to grow by 11% per year and will amount to $8 billion by 2023.;
• The main growth factors for cloud services will be the spread of 5G networks and an increase in the number of game services;
• in the next three years, 99% of mobile game downloads will be for free-play projects, and revenue from in-app purchases will grow by an average of 8% per year;
• analysts believe that the share of purchased games on the PC will be less than 50% due to the spread of the free-play model and free giveaways;
• At the same time, the PC will be the most profitable platform for in-game purchases, with total revenue of $32 billion by 2023.;
• “At current subscription prices, it will take an average of 10 months to cover the retail cost of one AAA game.

The main value of such platforms is in keeping users inside the ecosystem,” notes co—author of the study James Moar (James Moar).

The success of the Fortnite and Call of Duty: Warzone projects can lead not only to the growth of the freeplay market, but also to an increase in demand for cloud services — especially for games on mobile devices. Analysts also believe that cloud gaming will eventually significantly reduce the value of gaming hardware.

Also on the topic:

• Newzoo: revenue of the cloud gaming market will exceed $500 million by the end of the yearISFE: Europe’s gaming market earned €21.6 billion in 2019
• DFC Intelligence: Console market leaders have grown by 43% during the pandemic
• Is there any news?