2017 sees Digital Games becoming a $100 Billion Industry

Revenues from the global digital games market is set to reach $100 billion by the end of this year, according to a study by Juniper research.

Published annually, Future Games Market: Emerging Opportunities & Pivotal Publisher Analysis 2017-2021 found that Free to Play (F2P) games have contributed to the revival of the PC market, despite previous concerns. On top of the growth of the mobile market, the gaming industry is expected to see total revenues reach $132 billion by 2021.

In the report, Juniper published their top 5 games publishers:

    Rank           Publisher           Key Game
    1              Supercell           Clash Royale
    2              King                Candy Crush
    3              MZ (Machine Zone)   Mobile Strike
    4              Niantic             Pokémon Go
    5              MiniClip            8 Ball Pool

Source: Juniper Research

The research showed that publisher Supercell is the clear market leader, effectively monetising consumers through engaging games that are highly rated. Famed publisher for Pokemon Go Niantic Labs was advised to create longevity and engagement, or risk seeing a drop-off in active users.

With mobile industries increasingly favoured for games, many publishers are looking at ways for in-game advertising. The research found that the most effective implementation of that is when users opt in. For example, watching a short video to provide players with additional in-game credits can be marketed alongside paid options for an “ad-free experience”

“Juniper believes there is further opportunity for F2P on PC; particularly in Western markets; as well as console, with digital platforms such as Xbox Live playing host to F2P titles which are then monetised via in-game purchases and add-ons” explained research author Lauren Foye.

It was also noted that F2P monetisation strategy on PC devices is seeing rapid adoption; consumers are enticed into accessing a free game, before developers harness the freemium model. This was popularised by mobile games, and accounts for almost 80% of the platform’s revenues by 2021.

 

 

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