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Global gaming revenue set to decline

New research has found that global revenues from PC and console games will decline from $46.5bn this year to $41bn by 2019, despite a profileration of new consoles like the Playstation 4 and Xbox One.

The research, conducted by Juniper, also showed that despite the decreasing sales of console hardware and increasing significance of mobile platforms, PC and console games will still account for over 50% of industry revenues over the next 5 years.

Some pundits have declared the iPhone, with its huge number of free and 99 cent games, will kill traditional consoles but it seems this just isn't the case.

Global revenues from software sales on both the PC and console platforms will remain relatively healthy, with PC games software sales exceeding sales on the console platform.

The report PC & Console Games: Trends, Opportunities, and Vendor Strategies 2014–2019 found that the new generation of consoles will generate a short-term uplift in software sales, which is then expected to slow down as the lifecycle of the hardware progresses. Juniper also believes that a 9th generation of consoles is likely to arrive around 2019, assuming a similar console lifecycle to previous iterations, which is also likely to provoke a longer term software spike.

The report highlights that the cloud games market will reach US$1bn in revenues – a growth of almost 30% on the 2014 figure of $281 million. Juniper said the increase is a result of the launch of services, such as the PlayStation Now, and rising interest from operators to augment ARPU by adding cloud games alongside traditional services.

Other Findings from the report include:

  • Multiplayer online battle arena games, such as League of Legends and Dota2, will continue to be among the most popular genres on the PC platform.
  • Handheld devices will continue to struggle in attracting gamers, and revenues from this platform will shrink to under 2% of the total games industry sales by 2018.
  • The increasing availability of online video game streaming platforms, such as Twitch, supports the surge in popularity of eSports, or professional gaming.

The whitepaper, ‘Clash of Platforms’, is available to download here together with further details of the full report and Interactive Forecast Excel.

In less gloomy news the fourth-ever Dota 2 International - the MOBA game's worldwide championship tournament - was won today by the team known as Newbee, which is now more than $5 million richer.

In a best-of-five competition that took place in Seattle today, Newbee defeated Vici Gaming in four games. Vici won the first game before Newbee took out three in a row. A full recap of the games can be seen at onGamers here.


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