Remember the time when people were so eager to get their hands on the second release of PlayStation 2? How about the time when Nintendo introduced its first dual-screen handheld game console, the Nintendo DS? For sure, kids in the 80’s to the early 2000s will be able to relate or better yet, recall those days when they were so eager to get a hold of the latest video games that hit the market.
The evolution of the video game industry has come a long way from its humble beginnings in 1962 when the first known video game, Spacewar, was developed to the time when Magnavox Odyssey released the first dedicated home video game console to the first mobile game that was pre-installed in all 400 million cellular phones in the market in 1997.
Decades later, we are all still crazy about video games, only today, it’s becoming far bigger and far more advanced than most people have imagined it to be. In recent years, console games have been the norm but with the explosion of cloud-based gaming and live streaming, the question that’s keeping us all worried is--are gaming consoles going to take the backseat?
Today, we’ve seen that the explosion of the online gaming industry birthed the rise to fame of mobile gaming. Research claimed that the global games market as of 2018 is valued at $152.1 Bn and the mobile gaming sector takes up the largest share of the pie which amounts to $45.04B. Consequently, game consoles make up $31.49B of the global market leaving $23.47B to PC games.
The good news is that although mobile gaming still remains to be the largest segment, consoles are not going to be wiped out anytime soon. In fact, Nintendo was able to sell 36.87 million units of the Nintendo Switch, which just shows that game consoles are still selling well in spite of the spike in popularity of smartphone games.
Statistically speaking, a study by Newzoo claims that consoles will actually be the fastest-growing segment this year with a 13.4% increase in year-to-year growth in contrast to mobile gaming’s recorded 10.2% increase. This projection for console gaming is even estimated to rack up a CAGR of +9.7% by 2022 accounting for about $61.1 billion in revenues.
Interestingly, this increase in growth for the console gaming sector is largely driven by the North American market, the largest consumer of console games. It appears that this is also partly caused by China’s new policies regarding the approval of new game licenses. And with China’s new regulations in place, the U.S. is set to surpass China as the top gaming market in the world.
While PC gaming seems to be falling behind in terms of both sales and innovation, consoles, on the other hand, continue to be on the upswing with more impressive specs that offers convenience, portability, and high-resolution gameplay that now matches more affordable price points.
In other news, after everybody went head-over-heels over the Nintendo Switch, brace yourselves (and your pockets!) because Sony has confirmed the release date for PlayStation 5 which is expected to hit the stores by late 2020.