The Rise Of Console Gaming
2020 was an eventful year for the video game industry, and not just because of the breakout hit COVID. While the Coronavirus pandemic has negatively affected almost every facet of our entertainment industry over the past nine months, we will be moving our video game industry higher up the ladder as more people turn to consoles.
This massive and fast-growing industry is expected to generate $160 billion in global sales this year. While the console industry generates $45 billion in revenue each year, more than 700 million people who play video games in any way are devoted to consoles.
The gaming console market has undergone several hardware changes in recent decades, and the way companies in the industry make money has changed rapidly over the years. One of the most prominent examples is the way Apple has put a greater emphasis on services such as Apple Music, Apple Watch and Apple TV in recent years.
In recent years, console manufacturers have introduced new devices that are compatible with the latest specifications that gamers need on demand to improve the gaming experience.
The increasing demand for games consoles based on the 3D architecture is also expected to drive the overall market growth of the game console over the forecast period. The increasing number of smartphones and tablets, as well as the increasing adoption of mobile devices, will boost demand in the game console market. However, the increasing adoption and smartphone sales, coupled with the introduction of the latest gaming applications, will hamper the growing demand for consoles during the forecast period, the report said.
The increasing global investment in the development of 3D video games and the increasing possibilities for multiplayer online games should further stimulate the growth of the games console market. In the UK, investment in the development of 3D video games reached $2.30 billion between 2015 and 2017.
Such advances in 3D games are expected to drive market growth over the forecast period. Our insider intelligence predicts that the growth of the gaming market will slow in the coming years.
As the time spent at home increases in 2020, gamers will turn to console gaming as a means of entertainment. The console game is expected to grow 6.8% annually to $45.2 billion by 2020. The monthly increase in digital console gamers was the largest of all other gaming devices, rising 6% to 3.3% in 2019.
COVID 19 also had a negative impact on the console game, but commitment and revenue will rise despite the lockdown, at least in the short term. There is concern that the development of console games could lead to games scaling back the range of features before they reach the release window.
From the end of last year Sony started shipping the PlayStation 5 Ten years from now, we could still be ready for the next generation of video game consoles like PS4 and PS3. However, I see that this generation’s video game consoles are selling fewer units than any generation before them.
At the same time, game sales will double by 2030 and the global address market for games will increase tenfold.
Pachter says late starters are more likely to opt for streaming earlier and forego buying a console altogether.
The main players in the market are concentrating on the introduction of game consoles based on gaming and non-gaming applications. In 2012, Nintendo Co. Ltd launched the Nintendo Wii U, or Wii for short, which helps users control a gaming device from a handheld device and continue to use it to browse Internet applications, draw sketches and post pictures on social media websites. The further development of the Controller – Free Gaming Console will open up new opportunities for manufacturers in this market.
This rising trend is expected to drive market growth over the forecast horizon. In addition, manufacturers are developing multifunction game consoles due to the high demand for gaming and non-gaming applications in the games market.
While Newzoo says there will be a short-term recovery after years of loosening measurement, the next generation of consoles and related content will be key to usher in a new phase of growth for the segment. Over the forecast period, console game sales will grow at an average annual growth rate of 4.8%, although we do not expect double-digit growth five to six years after the launch. Finally, PC gaming, driven by the rise of mobile games and other non-gaming applications in the gaming market, will grow by 4-8% annually to $36.9 billion by 2020.