Why the video game industry should continue to grow in the years to come

2020 is the year of all records for the video game. While many economic sectors are heavily impacted, the video game world is doing very well. The game sales are reaching very high levels high, digital particularly pulling out of the game. For their part, streaming platforms like Twitch can be pleased with the results recorded, with for example a record five billion hours of viewing in the second quarter.

Cloud gaming and mobile games spearheading

The question is now to saveWhether this trend observed for several years now will continue. The answer is yes if we are to believe a report from Juniper Research. According to analysts, the video game industry will generate 200 billion dollars in revenue in 2023, against 155 billion forecast for the year 2020.

In detail, however, the authors predict a drop in revenue purchase, and are therefore not necessarily very optimistic about the success of the Xbox Series X or the PlayStation 5, even if the latter should nevertheless perform well.

According to the researchers, the growth of the sector will be mainly driven by free games, including Fortnite and Call of Duty Mobile, which will bring huge returns to studios through in-app purchases. Thus, 99% of downloads from mobile games would be free-to-play.

Cloud gaming should continue to grow. Stadia is struggling to take off for the time being, but the Xbox Game Pass is already a success. these services should be 9% per year until 2023. It will also be necessary to see if they are profitable over time and for the time being that is not yet the case. As James Moar, one of the authors, reminds us, to Forbes: “At the current price of game subscriptions, it will take an average of ten months of cash payment to cover the cost of producing a single AAA game.”