World electronic gaming revenues to grow 9.6% to $152.1 bln in 2019-report

Bandai Namco Holdings

18/06/2019 16:00

By Hilary Russ
    NEW YORK, June 18 (Reuters) - The global video and
electronic games market will generate $152.1 billion in 2019, up
9.6% over last year as gaming morphs into content and
communication, according to a report by gaming analytics firm
Newzoo on Tuesday.
    It is "the complete convergence of different forms of
digital entertainment all coming together," Peter Warman, chief
executive of the Netherlands-based firm, told Reuters in a phone
interview.
    As games become seemingly ubiquitous, they are turning into
tools for connectivity, allowing players to chat with friends
and meet new people. Fortnite publisher Epic Games Inc, in
particular, believes in gaming as a communication platform,
Warman said.
    Facebook Inc  FB.O  is launching its own games through its
Facebook, WhatsApp Inc and Messenger apps, as is Tencent Holding
Ltd's  0700.HK  WeChat in China.
    On June 5, Words With Friends developer Zynga Inc  ZNGA.O 
launched a new battle royale game exclusively on the new gaming
platform of Snap Inc, home of messaging app Snapchat  SNAP.N .
    This year, the United States will overtake China for the
largest gaming market by revenues - $36.9 billion versus $36.5
billion - due to growth in console games and the influence of
Fortnite in America and the echo of a previous governmental
freeze on new games in China.  urn:newsml:reuters.com:*:nB9N21903A
    "I believe it's a temporary glitch," said Warman of the
Chinese market, because there are so many games in the pipeline
awaiting approval.
    Japanese companies are also making a comeback, in part
because of nostalgia for retro games.
    A revamp of Final Fantasy VII, originally released in 1997
by Japan's Square Enix Holdings Co Ltd  9684.T , is expected to
be released next year, for example.
    Nintendo Co Ltd  7974.T  and Bandai Namco Holdings Inc,
developer of the classic Pac-Man games, are ranked 9th and 10th
on Newzoo's list of top public gaming companies by revenue.
    "It's taken a long time but they're back," Warman said,
after some Japanese developers were slow to embrace mobile
gaming and shift business models from paid games to
free-to-play.
    Mobile gaming on smartphones and tablets, versus PC and
console games, remains the largest platform, producing $68.5
billion, or 45% of the global market, the report said.   
    Newzoo surveyed more than 62,500 invite-only respondents
from February to March across 30 markets, among other data
sources. It is the firm's 9th such annual report.
    The report excludes revenue from esports, or formalized
professional video game competitions. Newzoo reported in
February that global esports revenue would hit $1.1 billion this
year.  urn:newsml:reuters.com:*:nL1N20400H

 (Reporting by Hilary Russ; Editing by Richard Chang)
 ((Hilary.Russ@thomsonreuters.com; +1 (646) 223-7381; Reuters
Messaging: hilary.russ.thomsonreuters.com@reuters.net))