5 Amazing Facts About Console Gaming Industry Revenue

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SoftwareSuggest

Senior editor

Parul Saxena

Chief editor

Last updated: February 11, 2021

It should come as no surprise to anyone that console gaming is still incredibly popular, and this industry is showing no signs of slowing down. As game developers from around the world continue to release amazing titles, major console developers are packing more power than ever into their consoles. This changing landscape has led to a development race between the largest companies in the world, including Nintendo, Sony, and Microsoft.

Manufacturers have started making even more profit by building peripherals specialized for console gaming. For example, high-quality Xbox One gaming headsets have been following an upward trend regarding sales through the last few years. There have also been some huge changes to the amount of data that modern titles use up, and that has resulted in staggering upgrades to internal and external hard drives.

Many experts are taking a look at financial developments in the gaming industry. Some companies and developers are falling by the wayside, but a few of the leading manufacturers are enjoying record sales. Here is a quick glimpse at five eye-opening facts about the gaming industry and just how much its revenue has changed over the last few years.

Amazing Facts About Console Gaming Industry

1. The Industry Is Now Worth Over $137 Billion

Overall, the gaming industry is now worth well over $137 billion, and that makes it the largest entertainment industry in the world. As for console gaming, manufacturers are making around $33.3 billion annually, but that is expected to rise in the coming years. Many experts believe that cross-platform play is going to play a major role in console gaming, and that might allow consoles to catch up to mobile gaming eventually.

With countless mobile apps and games getting released every single day, the mobile gaming industry continues to take the biggest slice of profits. That being said, some developers are now focusing on cross-platform play between mobile devices and consoles, and that could have a huge impact on sales over the next decade. As more titles can be played across platforms, some gaming enthusiasts might transition over to consoles for the improved connection speeds and better processing power.

2. Free Games Continue to Dominate

One of the most unusual changes within the gaming industry is the rise of free-to-play games. On Xbox Live, Gears 5 has recently become the most played game, but Fortnite held that title for quite some time. Fortnite is a free-to-play game that focuses on battle royale matches, and it has continued to be one of the most popular games in the world for multiple years. While many free games make money off advertisements and selling physical copies, Fortnite makes almost all of its money off microtransactions.

Inside the game itself, players can purchase a wide variety of items and upgrades, and those sales are staggering. One recent study found that Fortnite made just over $2.5 billion in 2018, and that makes it one of the most profitable games ever created. The growth of this game has stagnated in recent months, but the creators have stated they will be releasing quite a bit of content in the upcoming year, and that could keep their profits soaring.

3. The PS4 Controls the Market

Xbox One seemed to be catching up to Playstation 4 in overall sales, but that all changed with the release of Nintendo’s Switch. As soon as that platform was released, Xbox One sales immediately began to taper off. As of 2019, Playstation 4 has claimed just over 55 percent of all console sales, while the Xbox One only controls 25 percent of the market. The Switch is currently enjoying around 20 percent of the console market, but that might change with the release of the Playstation 5 and Xbox Scarlett.

Nintendo’s Switch is relatively new, and the only upgrade to that system has been the release of the Switch Lite. Even though they continue to release world-class titles and amazing peripherals, there are no plans for a new Nintendo console within the next year or two, and that is great news for Microsoft and Sony.

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4. Physical Game Sales Could Disappear By 2022

With cloud servers becoming more popular than ever, some analysts believe game manufacturers will completely do away with physical copies by 2022. One team of researchers discovered that physical game sales are dropping by around 10 points per year, and that means game discs could disappear by 2022 or 2023. While this might seem like a significant blow to the gaming industry, it could be beneficial in the long run.

Digital copies are going to require quite a bit of storage, but it will be much easier for gamers to make impulse buys if they don’t have to drive to the store or order hard copies off the internet. Unfortunately, digital copies will destroy the resale industry, and that is going to be bad news for companies like GameStop.

5. Revenue From Premium Games Is on the Rise

It might seem like free-to-play games have taken over the market, but premium games are still making vast sums of money. In 2018, a study conducted by Superdata found that premium game sales increased by 10 percent within 12 months. Some of the leading earners in that genre are PlayerUnknown’s Battlegrounds, FIFA 18, Call of Duty: Black Ops 4, and Grand Theft Auto V. Many game developers are also releasing paid downloadable content, and that has kept quite a few games in the green for multiple years in a row.

The Future of Console Gaming

There are no guarantees within the gaming industry, but it seems as if console manufacturers will enjoy some huge profits over the next few years. In addition to high-quality titles, those companies are also working on cutting-edge peripherals like VR headsets, new controllers, and staggeringly large hard drives. As long as the manufacturers continue to release new content and exciting peripherals, gamers will keep spending money.

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