The gaming industry saw record-breaking revenues of $159 billion in 2020, with the COVID-19 pandemic contributing to the surge in sales as people spent more time indoors. Mobile gaming experienced the most significant growth with a 25% year-on-year increase, generating revenue of $77.2 billion. PC and console gaming also saw growth, with sales reaching a total of $55.2 billion. Online gaming and esports contributed $23.9 billion in sales. The industry is projected to reach a revenue of $200 billion by 2023, with advancements in technology such as augmented reality, virtual reality, and cloud gaming contributing to its continued growth.
Gaming Industry Booms with $159 Billion in Sales
Introduction
The gaming industry enjoyed a tremendous year in 2020, with revenues reaching an all-time high of $159 billion, largely due to the COVID-19 pandemic. Herewith, we delve into the contributing factors and analyze the market trend.
Impact of Covid-19
The Covid-19 pandemic brought forth several challenges for businesses around the world, with one industry experiencing growth amidst the turbulence – gaming. As governments imposed lockdowns and social distancing measures, people spent more time than ever indoors, leading to a surge in gaming activity.
Contribution of Mobile Gaming
Mobile gaming continued to take the lead in the gaming industry, posting a staggering 25% year-on-year growth, generating revenue of $77.2 billion. While the pandemic played a role in the rise of mobile gaming, the industry had already shown a trend towards growth, with the rise of smartphone usage globally.
PC and Console Gaming
PC and console gaming also experienced growth in 2020, with sales reaching a total of $55.2 billion for both categories combined. With next-generation consoles such as the PlayStation 5 and Xbox Series X now on the market, this trend is set to continue in 2021.
Online Gaming and Esports
Online gaming and esports continue to be a significant part of the gaming industry, contributing $23.9 billion in sales. The restrictions imposed by the pandemic forced users to spend more time at home, leading to an increase in online gaming activity such as streaming and esports events.
The Future Outlook
The gaming industry is projected to continue growing in the coming years, with a projected revenue of $200 billion by 2023. As technology advances, the introduction of augmented reality, virtual reality, and cloud gaming, to mention a few, will bring about a significant shift and continued growth to this already booming industry.
Conclusion
The significant growth in the gaming industry in 2020 is a testament to the industry’s resilience amid the pandemic. With continued advancements in technology and a shift towards online gaming, the industry is in an excellent position to continue expanding and setting records in the near future.