Newzoo: games to generate $159.3 billion in 2020

In its latest report, Newzoo projects that in 2020 video games industry will generate $159.3 billion in revenue, up 9.3 percent from 2019. This will come from 2.7 billion gamers around the world.

The report identifies two significant growth drivers: the increased engagement due to coronavirus lockdowns, and the imminent arrival of next-gen consoles.

Mobile

While increased engagement and revenues can be seen across all platforms, the biggest surge is happening on mobile. The segment is projected to bring in $77.2 billion by the end of the year, up 13.3 percent from 2019.

2.6 billion people will play games on mobile in 2020. Of those, 38% will be paying players.

Console

Despite the impact of the pandemic on the physical distribution, console gaming will grow 6.8% year on year. More than 729 million players will spend $45.2 billion on console games and hardware.

PC

Finally, 1.3 billion players will play PC games spending $36.9 billion in 2020. The 4.8% year-over-year growth is almost completely down to the lockdown measures.

***

Geographically speaking, China and the U.S. will account for around 50 percent of the user spend in 2020. However, moving forward, it is emerging markets in Latin America and Asia-Pacific that will be driving growth.

Finally, Newzoo predicts that the industry will continue to grow in the following years and will surpass $200 billion by the end of 2023.