The video games business is booming.
The video game industry is one that has been growing over the years. With new technology and new games coming out at such a rapid pace, the business continues to boom along with improvements to the gaming experience. According to new reports provided by GlobalData, the industry is on pace to become a $300B industry by 2025.
Mobile gaming was a major factor in the $131B generated in the video game industry in 2018. While it outpaced PC and console gaming, it's predicted to be a prominent driver in revenue in the future, as well as VR and cloud gaming.
GlobalData's principal analyst for Technology Thematic Research, Ed Thomas, explained in a press release how the innovation of video games have been a primary contributor to the growth of the industry.
“Today’s video games industry is in the throes of a huge transformation from a product-oriented business to an as-a-service model,” Thomas said. “At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation, while new business models like support for in-game micropayments are already changing the economics of gaming.”
In-game purchases for free-to-play games like Fortnite are also likely to help revenue growth. Streaming games are also set to make a major mark with subscription services like Playstation Now's increasing popularity. Other companies are following suit and developing their own cloud gaming platforms.
“Cloud gaming is evolving into a global phenomenon,” Thomas explained. “Major games companies are racing to become the Netflix of games, driven by rapidly increasing viewership on existing streaming channels. However, latency and bandwidth limitations will serve as a brake on the development of mobile gaming services. The maturing of cloud technologies and development of 5G will reduce these network issues, creating an increasingly competitive market in which several leaders have already emerged.”