Analytical estimates about the gaming industry are kind of hit or miss at times. Sometimes they’re spot on, other times they’re about as broad as spitting on the wide side of a barn for target practice. In this case, Technavio estimates that the online gaming scene will hit $46.61 billion, globally, by 2020 in just four years.
According to the report, the online gaming market the world around was valued at $28.5 billion in 2015, and it’s expected to nearly double within the span of just a few years. This fits in line with another recent report from SuperData Research, where they revealed that MMO and MOBA gaming alone will be worth $20 billion, as repoted by Alist Daily.
The online gaming space is expected to see a compound annual growth rate of 12%, according to Technavio, this includes free-to-play games, pay-to-play games, mobile games, browser games and client-based games.
They also list off some of the top online gaming companies in the market today, with Activision Blizzard, Zynga and Electronic Arts filling out the top three spaces. I’m guessing they have Activision leading the pack thanks to Overwatch, StarCraft II and the bustling e-sports scene involving Heroes of the Storm and Hearthstone. However, I get the feeling that the report missed out on the biggest players on the block… Tencent.
For those of you who don’t know, Tencent is the biggest software publisher in the world, and a powerhouse over in China. They buy up popular brands and let the money flow in. They recently saw a quarterly profit just recently of $1.41 billion from their mobile games alone, as reported by Marketwatch.
Nevertheless, with e-sports on the rise, China’s gaming scene constantly blowing up, Nintendo about to release the NX, and VR moving in wildly different directions, I think gaming has an interesting road ahead of it, especially over the course of the next two years. If things continue on the upward trend in the online space as they have been recently, it’s not surprising to think that the global online gaming arena will hit $46.61 billion by 2020.
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