In 2019, the gaming industry will earn $148 billion, but will lose $3 billion due to consoles

Analysts from Newzoo shared a new report in which they predicted a new profit record for the gaming industry.

What is known

According to the analytical agency’s estimates, in 2019the gaming industry will earn $148.8 billion. This is 7.2% more than in 2018, but lower than the expected result. In a previous report, Newzoo predicted that gamers would spend $152.1 billion on games.

Analysts had to lower expectations due toslowdown in the growth of the game console market. In the first two quarters of 2018, the segment showed growth of +21% and +24%, respectively, but in 2019, over the same period, income grew by +7% and +4%. The agency initially expected consoles to bring in $47.9 billion in 2019, but now expected revenue will be $45.3 billion, up 7.3% compared to 2018.

Analysts note that 2018 was a record year for three reasons:

  • The rise in popularity of "royal battles" (especially Fortnite)
  • Release of several generation-defining games
  • The success of the Nintendo Switch.

Still, the console market is showing the fastest growth and will overtake PC in terms of revenue.

The mobile gaming market will also continue to grow.Portable entertainment is expected to generate $68.2 billion in 2019, up 9.7% from 2018. Additionally, smartphone games will account for 46% of total industry revenue this year. According to analysts, the markets of Japan, South Korea and North America are to thank for the active growth of mobile entertainment.

Analysts estimate that by 2022, game sales should grow to $189.6 billion per year. Moreover, 80% will come from console and mobile games.

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