A report from gaming analytics firm Newzoo has predicted there would be a growth of 9.6 per cent year on year in the revenues for the growth of the global video and electronic games market for the entire of 2019, driven by the amalgamation of gaming with content and communication.
It is “the complete convergence of different forms of digital entertainment all coming together,” Peter Warman, chief executive of the Netherlands-based firm, to the media in an interview.
Games can now be found virtually anywhere and on any electronic device even as they now transform into tools for connectivity by allowing the users to connect to each other through chatting and by providing opportunities to meet new people. Warman said that gaming as a communication platform is one of the most important and unique aspects of gaming for Fortnite publisher Epic Games Inc.
Companies like Tencent Holding Ltd’s WeChat in China and Facebook Inc both have announced the launching of their own games through their apps – Facebook, WhatsApp Inc and Messenger apps for Facebook.
A new battle royale game was launched exclusively on the new gaming platform of Snap Inc which is the home of messaging app Snapchat, by Words With Friends developer Zynga Inc on June 5.
A growth in demand for console games and the influence of Fortnite in America and the echo of a earlier US governmental freeze on new games in China will drive the growth in the gaming market in the US and move ahead of China this year with anticipated revenues of about $36.9 billion compared to $36.5 billion for China.
“I believe it’s a temporary glitch,” said Warman of the Chinese market, because of te numerous game sthta are in the pipeline and waiting to get approval.
Partly because of the nostalgia for retro games, there is also a comeback for Japanese gaming companies. For example, it is expected that next year, a rehash of Final Fantasy VII, originally released in 1997 by Japan’s Square Enix Holdings Co Ltd, would be launched in the market. In terms of revenues on the Newzoo’s list of top public gaming companies, ranked 9th and 10th are Nintendo Co Ltd and Bandai Namco Holdings Inc, developer of the classic Pac-Man games.
“It’s taken a long time but they’re back,” Warman said. He pointed out that mobile gaming and a shift business models from paid games to free-to-play wer5e not embraced by some of the Japanese game developers which saw the Japanese gaming industry falling behind.
The report said that $68.5 billion, or 45% of the global market of the total revenue of the global gaming market is contributed by mobile gaming on smartphones and tablets and not the PC and console games and hence it is the largest gaming platform.
The data for the report was collected by Newzoo from through a survey that comprised of more than 62,500 invite-only respondents from February to March spread across 30 markets.
(Adapted from Reuters.com)