Wednesday, 02 May 2018 01:54

'Loot boxes' and in-game spend driving digital games market to US$160b by 2022


With new game formats and monetisation strategies at play, developer prospects have been boosted with growth to reach US$160 billion by 2022, up from US$117 billion this year.

The analytical gurus at Juniper Research have forecast that the digital gaming market is "set to be boosted by the increasing prevalence of loot boxes", which are "purchasable in-game packs which contain a random selection of items, thus monetising users in-game".

We're told that the practice has "already proved immensely popular globally, especially in the Chinese games sector".

New monetisation models and game styles

The new research, dubbed "Future Games Market: Market Sizing & Forecasts 2018-2022", argued that "how loot boxes are monetised will be a critical decision for games developers for the future".

Research author Lauren Foye explained: “Loot boxes play upon the gamers’ desire to have the most prestigious and sought-after in-game items, whether these be weapons or cosmetic goods.

"By monetising the random generation of items, developers are effectively encouraging a form of in-game gambling, extending both the lifecycle and engagement of games titles to their audience.”

In addition, the research notes "the opportunity presented by evolving game formats, as evidenced from the surge in popularity of Battle Royale titles, where dozens of players face-off in a ‘last-man standing’ format. Titles include PUBG & Fortnite, each of which hosts 35 million unique players".

Meanwhile, in the well-established mobile games sector, Juniper finds "advertising is set to play a still greater role in monetising consumers whom avoid paying into popular free titles; with ad spend reaching $20 billion by 2022".

Article continues below image, please read on. 

Core devices see uptick in spend

Juniper also states that the console market is "set for a revival, noting that the Nintendo Switch has done markedly well with over 16 million units sold since its March 2017 launch".

"Console revenues are set to hit US$33.2 billion by 2022, up from US$25.3 billion in 2017. The research pinpoints growth in digital formats, as well as anticipated boosts to sales from the next generation of consoles, now expected from 2020 onwards."

For more insights, Juniper has provided, as usual, its free whitepaper: "3 Takeaways from the Booming Chinese Digital Games Market", in the hope of tempting relevant parties to purchase the full research, at relevant prices.

Subscribe to ITWIRE UPDATE Newsletter here

Active Vs. Passive DWDM Solutions

An active approach to your growing optical transport network & connectivity needs.

Building dark fibre network infrastructure using WDM technology used to be considered a complex challenge that only carriers have the means to implement.

This has led many enterprises to build passive networks, which are inferior in quality and ultimately limit their future growth.

Why are passive solutions considered inferior? And what makes active solutions great?

Read more about these two solutions, and how PacketLight fits into all this.


WEBINAR INVITE 8th & 10th September: 5G Performing At The Edge

Don't miss the only 5G and edge performance-focused event in the industry!

Edge computing will play a critical part within digital transformation initiatives across every industry sector. It promises operational speed and efficiency, improved customer service, and reduced operational costs.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

But these technologies will only reach their full potential with assured delivery and performance – with a trust model in place.

With this in mind, we are pleased to announce a two-part digital event, sponsored by Accedian, on the 8th & 10th of September titled 5G: Performing at the Edge.


Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News