The video game industry is a billion dollar business. In 2018, the revenue was $109.8 billion. This figure signals a strong future for companies like Ubisoft, Activision-Blizzard, and Tencent. In fact, it’s estimated that 22% of gamers spend 61-80% of their time playing multiplayer online games. The market continues to grow. While the top earners are still the same companies like Sony and Microsoft, some companies are booming in different segments of the industry.
The video game industry has three main players: Sony, Microsoft, and Nintendo. The first two were known as home consoles, and sold hundreds of millions of units each. Nintendo’s GameBoy and PlayStation 4 sold nearly a hundred million units each. The three companies together earned $7.5 billion in 2019.
Asia is the largest gaming continent, with nearly half of gamers. This region will account for 48% of global gaming revenue in 2020, while the United States will account for the next two largest regions. Europe and North America are the second and third largest gaming regions, respectively. Europe and Latin America contribute only 3% to the overall video game market. The Entertainment Software Association reports that 65% of American adults play video games. This growth will likely continue in the years to come, especially since Japan has a well-established gaming culture.
In addition to traditional retail sales, online gaming is another important source of revenue for the video game industry. For example, Massive Multiplayer Online games (MMOGs) have tapped into this market by selling paid subscriptions alongside the game itself. Xbox Live, for example, allows players to play multiplayer games through online services. Similarly, PlayStation Plus provides exclusive content and discounts on video games. According to the report, 66% of gamers place price as their top priority when purchasing a game.