The global digital gaming market is projected to expand at a CAGR of 15.7% and is expected to be worth USD 264.9 Bn by 2023. The increased proliferation of smartphones and tablets is providing a considerable push to the gaming market globally. Also, the improvement in technology and the ease of access to internet connectivity have given an impetus to live games of MMO and eSports genres. The gaming companies are increasingly preferring digital distribution channels over physical distribution channels, as digital distribution allows easy purchase and downloading of digital content for different gaming platforms.. Read More: https://bit.ly/2ULckcN
2. |
Table of Contents
2
Chapter 2
Introduction
2.1. Market Definitions
2.2. Different business models
2.3. Distribution channel analysis: Big four companies
Chapter 3
Global Digital Gaming Market Overview
3.1. Market overview
– Global market revenue (USD Bn)
– Global projected market revenue (USD Bn)
– Geography-wise market revenue (USD Bn)
3.2.Global trends
Chapter 1
Executive Summary
1.1. Market scope and segmentation
1.2. Key questions answered in this study
1.3. Executive summary
GLOBAL DIGITAL GAMING MARKET
3. |
Table of Contents
Chapter 4
Global Digital Gaming Market – Based on Region
4.1. North America
– Overview
– Drivers
– Challenges
– Trends
4.2. Asia-Pacific
– Overview
– Drivers
– Challenges
– Trends
3
Chapter 4 (Cont.)
Global Digital Gaming Market – Based on Region
4.3. Latin America
– Overview
– Drivers
– Challenges
– Trends
4.4. Europe Middle East and Africa (EMEA)
– Overview
– Drivers
– Challenges
– Trends
Chapter 5
Global Digital Gaming Market – Based on Platform
5.1. Global digital gaming market overview – Based on platform
5.2. Global mobile games market
– Drivers
– Challenges
5.3. Global console games market
– Drivers
– Challenges
5.4. Global PC games market
– Drivers
– Challenges
GLOBAL DIGITAL GAMING MARKET
4. |
Table of Contents
Chapter 6
Major Platforms Overview – By Region
6.1. Major platforms – North America
– Revenue contribution
– Key highlights
6.2. Major platforms – Asia-Pacific
– Revenue contribution
– Key highlights
6.3. Major platforms – Latin America
– Revenue contribution
– Key highlights
6.4. Major platforms – EMEA
– Revenue contribution
– Key highlights
4
Chapter 7
Huge Opportunity Zones
7.1. eSports
7.2.Blockchain gaming
7.3.Cloud gaming
7.4.Virtual reality, augmented reality, and mixed reality
Chapter 8
Competitive Landscape
9.1. Activision Blizzard
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
9.2. Electronic Arts
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
GLOBAL DIGITAL GAMING MARKET
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Table of Contents
Chapter 8
Competitive Landscape
9.3. Take-Two Interactive
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
9.4. Ubisoft
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
5
Competitive Landscape
9.5. Zynga
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
9.6. Tencent
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
Competitive Landscape
9.7. GungHo Online
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
9.8. Nintendo
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
GLOBAL DIGITAL GAMING MARKET
6. |
Table of Contents
Competitive Landscape
9.9. Sony Corporation
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
9.10. Microsoft Corporation
– Company snapshot
– Key numbers
– Major game titles
– Initiatives
– Growth strategy
6
Major Players Foraying into the Gaming Market
Google
Facebook
Amazon
Chapter 9
Gaming Start-ups and Disruptors
10.1. Chopup
10.2. Omnidrone
10.3. Piranha Games
10.4. Nazara Technologies
10.5. Witching Hour Studios
10.6. Touchten Games
10.7. Steel Wool Studios
10.8. Playsnak
10.9. Flying Mollusk
10.10. Lucid Sight
10.11. Ironhide Game Studio
10.12. NGD Studios
GLOBAL DIGITAL GAMING MARKET
7. |
Table of Contents
Gaming Start-ups and Disruptors
10.1. Chopup
10.2. Omnidrone
10.3. Piranha Games
10.4. Nazara Technologies
10.5. Witching Hour Studios
10.6. Touchten Games
10.7. Steel Wool Studios
10.8. Playsnak
10.9. Flying Mollusk
10.10. Lucid Sight
10.11. Ironhide Game Studio
10.12. NGD Studios
10.13. Google and Facebook
7
Chapter 10
Conclusion
10.1.Conclusion
Chapter 11
Appendix
11.1. List of tables
11.2. Research methodology
11.3. Assumptions
11.4. About Research On Global Markets
GLOBAL DIGITAL GAMING MARKET
8. |
Executive Summary I
8
Overview
The global digital gaming market is one of the most thriving sectors in
the global media and entertainment industry.
The market is forecast to experience significant expansion, at a CAGR of
XX%, and will reach USD XX Bn by 2023
The mobile gaming segment is the largest, having generated USD XX Bn
in 2017, followed by console and PC games
The overall market trend shows a shift from brick and mortar stores
towards more digital purchases
Drivers
Technological advancements and shift of network from 2G to 4G will
lead to an increase in digitally-downloadable games, and other live
games of the MMO and eSports genres
The increasing prominence of cross-platform games and 3D games is
boosting the global digital gaming market
The number of smartphone users are expanding at a significant rate,
which in turn is boosting the mobile gaming market globally
– The proliferation of smartphones and tablet PCs is giving a
considerable thrust to the global gaming market
Trends
Game development companies are increasingly considering digital
distribution as the preferred distribution channel as compared to
physical distribution channels
– Digital distribution allows gamers to purchase and download digital
content for different gaming platforms
Increasing adoption of eSports, especially in the Asia-Pacific region, has
bolstered growth of the gaming industry
– Currently, eSports is one of the areas in which gaming companies are
willing to make significant investments, since the eSports market’s
revenue increased by more than four times between 2013 and 2016,
and could almost triple by 2021
Challenges
The investment crunch is one of the factors posing a challenge to the
mobile gaming industry
– In the absence of funds, mobile gaming-based start-ups have limited
access to infrastructure and talent
The biggest problem that the gaming industry faces is the need for
creation of new content to keep existing audiences engaged
Securing users constantly is essential for gaming companies to ensure
that their earnings do not dip
– Gaming experts say that the industry has reached a position where
almost all possible genres and methods of gameplay have been
explored
GLOBAL DIGITAL GAMING MARKET
XX
XX
XX
XX
XX
XX
XX
XX
264.9
0.0 50.0 100.0 150.0 200.0 250.0 300.0
2015
2016
2017
2018
2019
2020
2021
2022
2023
Global Digital Gaming Market Revenue (USD Bn)
Source: Netscribes Analysis
GLOBAL DIGITAL GAMING MARKET
9. |
Executive Summary II
Segmentation Based on Region
The digital gaming market is segmented based on region: North
America, Asia-Pacific, Latin America, Europe, the Middle East and Africa
APAC is forecast to contribute XX% of the total revenue of the digital
gaming market in 2023
APAC is expected to witness the highest growth rate through the
forecast period of 2018-2023
Most of APAC’s growth is to come from China, a region where mobile
gaming is becoming increasingly popular
Mobile gaming is the dominant form of gaming in the Latin American
region
The mature market of North America is expected to see console games
as the largest segment
9
Segmentation Based on Platform
The digital gaming market is further segmented based on platforms:
PCs, mobiles, and consoles
The mobile gaming segment was the largest, with a market share of
XX% in 2017, and will be expanding at the highest CAGR of 23.1% (2018-
2023) among the three
– The market is driven by revenue from advertisements, affordability
of mobile phones in emerging markets, proliferation of the Internet,
and low entry barrier costs in gaming
The console gaming segment is expected to be the second-largest one
in the gaming market
– It will be driven by the launch of next-generation consoles and
expanded digital purchases
Research On Global Markets’ analysis predicts a considerable shift from
PC gaming, to mobile and console gaming
– The market share of PC gaming has witnessed a fall over the years as
the market is restrained by factors like piracy, high cost of gaming
PCs, etc.
Competitive Landscape
In the competitive landscape, ten major gaming companies have been
profiled:
– Activision Blizzard
– Electronic Arts
– Take Two Interactive
– Ubisoft
– Zynga
– Tencent
– Nintendo
– GungHo Online
– Sony Corporation
– Microsoft Corporation
The prominent trends among the top companies are adoption of
eSports, Virtual Reality (VR), and digital distribution of games
The growth strategies of the companies include organic expansion to
develop older games and improve their relationship with customers
– Also, inorganic expansion by way of acquisitions help companies
venture into segments like mobile games, and technologies like AR,
VR, etc.
A snapshot of eight new-age gaming start-ups - Chopup, Omnidrone,
Piranha Games, Nazara Technologies, Witching Hour Studios, Touchten
Games, Steel Wool Studios and Playsnak, Flying Mollusk, Lucid Sight,
Ironhide Game Studio, and NGD Studios - is given, along with their
funding information, initiatives, and recently-released games
GLOBAL DIGITAL GAMING MARKET
10. |
Global – Market Trends
Digital Distribution
Delivering games digitally, instead of distributing the same via
retail/physical channels, is the most prominent trend now
In digital distribution, the barriers to entry are significantly low
– Big gaming companies have created their own platforms for digital
distribution, likes Steam, Origin, and Xbox Live Marketplace, using
which, gamers purchase and download digital content for different
gaming platforms
10
Change in Gaming Devices
Another key trend in the industry is the evolution of
gaming devices
Mobile games are quickly gaining popularity, since more gamers are
turning to their smartphones and tablets for entertainment, thereby
facilitating digital distribution
Entry barriers in the mobile gaming industry are lower than other
platforms
As a result, major companies are investing in mobile games. In 2016,
Activision Blizzard completed the acquisition of King Digital
Entertainment to expand on its opportunities in mobile gaming
Use of Communication Software
and Virtual Credits
Games are now being equipped with messaging and video applications
to allow smooth communication ‘in between’ games, across players
Developers are currently focusing on monetizing content, by enabling
virtual credit systems for the sale of downloadable digital content
within games, or 'in-game purchases' like buying new avatars, and
purchase of extra levels, among others
GLOBAL DIGITAL GAMING MARKET
11. |
Global – Market Trends
Adoption of eSports
eSports is a form of competitive video gaming where players compete
with each other in an online or live environment for a large number of
viewers
The most common genres of video game associated with eSports are
real-time strategy, combat, first-person shooter (FPS), and multiplayer
online battle arena (MOBA)
Currently, eSports is one of the major areas that gaming companies are
willing to invest in, since revenue from this market grew by more than
four times between 2013 and 2016, and might almost triple by 2021
11
Adoption of AR and VR Technologies
AR and VR are new but essential trends in the gaming industry, and it is
actively being made available to customers at affordable prices
VR is more about having a great gaming ‘experience’ rather than just
playing a game
This leaves room for speculation with regard to how successfully VR will
be able to convert hours of dedicated game-playing into a more
immersive gaming experiences
On the other hand, AR technology is easily implementable, and its
success is visible from the popularity of Pokémon Go and Night Terrors
Women and Non-Millennial Gamers
There has been an enormous rise in the number of female gamers.
Since 2010, female gamers have made up around half of all global
gamers
In the U.S. - a leading gaming region - the average age of gamers is 37
Also, 31% of the video game-playing population comprises adult
women, while only 18% of the gaming population are boys of ages
below 18
GLOBAL DIGITAL GAMING MARKET
12. |
2017
2016
2015
2017
2016
2015
2017
2016
2015
2017
2016
2015
ActivisionBlizzardElectronicArts
TakeTwo
InteractiveUbisoft
Distribution Channel Analysis
12
With the dawn of the broadband Internet era, the landscape of
game distribution channels has changed over the years
Major gaming companies like EA, Take-Two, Activision Blizzard
and Ubisoft are increasingly shifting towards the digital
distribution channels, from the retail distribution channels
Clearly, digital distribution is a common growth strategy for top
players
It allows companies to make their products available to
consumers at minimal costs, thereby, drastically lowering the
total cost of developing video games
Video game producers are focusing more on story and content
development, without worrying about incurring massive costs on
distribution channel intermediaries
Gaming companies are also launching titles which were previously
available only on PCs and gaming consoles
Games such as FIFA, Madden NFL, The Sims, SimCity, and Star
Wars are available across mobile platforms and even as free,
downloadable versions for PCs
In addition to developers and publishers, digital distribution
benefits consumers by enabling them to buy/play the games
online without having to purchase it through any retailer
(online/B&M)
They can download games directly through websites like Steam,
Origin, and others
Revenue from the retail
distribution of games for the four
major companies has declined,
and digital distribution channels
have gained prominence. In 2015,
revenue from both channels of
distribution were almost equal,
while in 2017, it became clear that
the future of the market was in
games downloaded over the
Internet, and not so much in
games bought via retailers
Distribution Channel Analysis : Four Major Companies
Retail Digital
Source: Annual reports of the stated companies
GLOBAL DIGITAL GAMING MARKET
13. |
XX
XX
XX
XX
XX
XX
XX
XX
XX
Mobile Console PC
13
Mobile
Mobile games was the largest segment of the
2018 global digital gaming market, accounting
for XX% of the revenue
This segment is expected to expand at a CAGR
of XX% during the 2018-2023 period, and is the
fastest-growing segment, globally
By 2023, the mobile gaming segment is
forecasted to hold on to largest market
share
Console
Console games came after the mobile gaming
segment, with a revenue share of XX% in 2018,
generating USD XX Bn
By 2023, revenue from the console gaming
market is forecast to reach USD XX Bn
2015
Market share of various platforms (2015, 2018, and 2023)
PC
The PC games segment is next, but is expected
to experience a negative growth rate during
the forecast period (CAGR of XX%)
Research On Global Markets’ analysis says that
PC gaming is likely to become the least
preferable form of gaming in the years to
come. The market revenue from PC gaming is
forecast to come down to USD XX Bn
2018
2023
GLOBAL DIGITAL GAMING MARKET
Global Digital Gaming Overview – By Platforms
Source: Netscribes Analysis
14. |
Global Console Games Market Overview
The first generation of console games were introduced in
the 1970s and had several hardware shortcomings like
lack of an audio port, etc.
Consoles have come a long way since then and have become much more than a
simple gaming device.
High-end devices like Xbox, PlayStations, and Wii Switch have 3D graphics, Internet
connectivity, online playing options, and movie-watching features.
Despite high purchase costs, and increasing competition from the mobiles segment,
launch of next-generation consoles and expanded digital purchases on the same will
drive the market forward.
14
XX
XX
XX
2015 2018 2023
Console games - global revenue (USD Bn)
Source: Netscribes Analysis
GLOBAL DIGITAL GAMING MARKET
15. |
Global Console Games Market Overview
Drivers
Launch of new generation console
The global console market is influenced significantly by the launch of next-generation gaming consoles
The major vendors in this segment are Sony, Microsoft, and Nintendo. The last generation of consoles were
released in 2013, and since then, the global console games market has seen a decline, since the market has
reached its saturation point
Gamers want upgrades in console technologies, and they look for enhanced audio-visual experiences while
gaming through consoles
Thus, the launch of next generation consoles will propel the market
Increase in micro transactions/digital purchases on consoles
Mirroring the global gaming market trends, increased digital purchases on consoles will drive the growth of
console games
Advanced technology and features
Use of advanced technology in consoles acts as a significant driver for console games
New consoles come with better RAM, processing units, motion sensors, and Internet connectivity
Live video streaming via Netflix, YouTube, etc., watching DVDs/ Blu-rays, online game playing, browsing the
Internet, among others, make these the preferred consoles, as opposed to traditional ones
15
Challenges
Competition from mobile and social gaming
People are shifting to mobile gaming for its ease of access and affordable pricing. Since 2007, mobile apps have
become more popular
Meanwhile, serious gamers are shifting to PC-based games. All these put together, have resulted in the
contraction of the market size for console games
High cost
High initial investment on consoles (which has no alternative use apart from gaming/ browsing) creates a
problem with regard to penetration in developing economies like that of APAC, where disposable income is less
in comparison to developed regions like North America and Europe
Since gaming/ browsing can be done using PCs/mobile devices, consumers do not usually invest in a dedicated
gaming device like a console
Inability to adopt eSports
eSports is an emerging trend in the gaming industry. Compared to PC gaming, consoles have limited
penetration in the eSports market
Console games have a small share in popular eSports genres like fighting and sports, and in that little share, the
emphasis is more on one-on-one gaming instead of MMO. This acts as a significant deterrent for the growth of
eSports on consoles
GLOBAL DIGITAL GAMING MARKET
16. |
Major Platforms Overview – North America
16
Key highlights – major platforms (North America)
In North America, even though mobile gaming is becoming increasingly popular, consoles are still the
biggest segment
During 2018-2023, the console gaming segment is expected to expand at a CAGR of XX%
Due to higher purchasing power of the people (the average U.S. consumer spends over USD 2,000
annually on entertainment and media), compared to developing regions like MEA or APAC
(consumers in Nigeria and India spend less than USD 50 annually on entertainment and media),
people here have higher interest in investing in console games
Also, the last generation of consoles was introduced in 2013. In 2018, console games contributed a
major share of around XX% to the gaming industry in the North American region. Thus, when the
next generation of consoles come around in 2018-19, the demand for these games is sure to soar
again
Unlike APAC and MEA, where mobile games is the dominating segment, it is the second largest
segment in North America, after consoles
Gamers in North America are willing to spend more money on mobile games, compared to their Asia
Pacific counterparts, as the American “install-to-purchase” (engagement and purchase rate)
engagement on mobiles games is almost XX% higher than in APAC
North America’s PC gaming revenue is expected to expand at a stable CAGR of XX% through 2018-
2023
Steam, which is one of the most significant digital PC games portals, sells most of its games in North
America, followed by Europe and Asia. League of Legends, Hearthstone: Heroes of Warcraft,
Minecraft, and Overwatch are PC games that people play the most in the U.S.
XX
XX
XX
PCs
Mobiles
Console
2018
USD XX Bn
XX
XX
XX
PCs
Mobiles
Console
2023
USD XX Bn
Revenue contribution based on platforms (North America)
Source: Netscribes Analysis
GLOBAL DIGITAL GAMING MARKET
17. |
Opportunity Areas – Overview
Gaming has moved forward from the
conventional 2D Arcade and TV
video games, to advanced forms
Gaming companies are foraying into the domains of
eSports, Blockchain gaming, cloud gaming, and VR
and AR in gaming
A growing global audience and a top-tier talent pool is
pushing gaming companies to make investments in
these gaming domains.
17
eSports is drawing large
audiences in recent
times, which in turn has
opened up a plethora of
opportunities for media,
gaming, and
entertainment companies
Blockchain gaming
addresses all the
problems that the gaming
industry has been facing
for years
Cloud gaming enables
gamers to play high-end
games on low-end
machines
Players are more involved
in VR-based gaming, as it
has the potential to
create social experiences
1 2 3 4
GLOBAL DIGITAL GAMING MARKET
18. |
Virtual Reality, Augmented Reality, and Mixed Reality
Overview
VR had been thought to possess great potential as it could create social experiences while gaming
Players would be more involved in a VR based gaming. VR gaming makes players feel as if they belong to a
scene rather than demonstrating things. The simulation in VR gaming allows players to see things from different
angles and perspectives
After cross analyzation of eSports engagement and VR buying intention, it was found that there was a strong
correlation between them - near about 63% of all VR buyers were into eSports
Mark Liu, the chief executive of the world’s largest chipmaker, Taiwan Semiconductor Manufacturing, has said
that there is great demand from game console processors and gaming graphics processing units for VR
applications. He also said that in the coming years, VR will be embedded in people’s daily lives, thus changing
the way people communicate and interact, and would increase productivity as well
The concept of mixed reality in gaming is also on the rise. Mixed reality games enable gamers to experience the
real world with virtual objects. The increasing adoption of wearable devices by gamers is creating avenues for
further developments in this domain
Also, an increase in the demand for connected devices, together with advancements in processing technology
and sensors, are driving the AR, VR, and mixed reality market
Niantic came up with the world’s first edge-enhanced mixed reality multiplayer experience with its Codename:
Neon. It boasts of a fully multi-tenant control plane that supports zero-touch provisioning of edge cloud
resources as close to the players as possible
18
Major Challenge – Pace of Adoption
VR seems to be stuck in its early-adopter phase, with only the deeply-pocketed and most committed users
getting involved. The main factor blocking the mainstream adoption of VR games seems to be the dearth of
compelling content
The only good triple-A titles compatible with PSVR are Resident Evil and Gran Turismo Sport
The key takeaways from the annual survey conducted by the Game Developers Conference stated that there is
a declining interest in VR. It is a bit of a whiplash to the VR industry as a whole
The vastly exciting technology, which was thought it would break through and dominate everything back in
2015 and 2016, could not garner much attention. In 2017, it witnessed a slow rate of adoption among
consumers, which amounted to a big reality check for VR gaming
Industry experts state that it is the interest in VR that is dwindling. The number of developers working on AR
games is in a steady state, and those who are already there in the business of creating VR games do not expect
it to be a long-lasting market
– The CEO of the studio CCP Games, Hilmar Veigar Petursson, said that their company does not see much of a
future for VR gaming. They expected VR to be two to three times as big as it was. Hilmar said that their data
showed that VR-based gaming adoption was slow even among enthusiasts. With hardware that is difficult to
set up, absurd PC requirements, and nearly no AAA titles to attract the curious into the world of VR, it is
increasingly unlikely that the gaming industry will see a significant shift to VR any time soon
GLOBAL DIGITAL GAMING MARKET
19. |
Virtual Reality, Augmented Reality, and Mixed Reality – Regional Insights
19
North America Europe
Asia-Pacific (APAC)
LATAM
Research conducted by a global leader in games and
esports analytics at the end of the year 2016 on the
European and North American countries, stated that 11%
of the online population across the countries in Europe
(aged 10-65) intended to buy a Virtual Reality (VR) product
in the next six months
The research claimed that the buying intention would be
highest in Spain and Italy with consumers in Belgium and
the Netherlands staying most skeptical about the new
technology
It was also observed that 7% of this group, or about
4 million people, were non-gamers. This was proof that VR
technology’s reach was already extending beyond gaming
In the U.S., the intent to buy is a bit higher than that
of the European aggregate, with 12% of the online
population planning to buy a VR product in the
coming six months
According to the report by a global leader in games and eSports analytics, spending on augmented reality (AR) and VR will be humongous for the Asia-Pacific region
The availability of new VR headsets such as Mirage Solo from Lenovo and Oculus Go from Facebook are expected to drive the adoption, as well as content spending in 2018, and beyond
These headsets eliminate the need for pairing with consoles or PCs, which used to drive the costs higher for VR/AR experiences
The launch of the AR SDK platforms from both Apple and Google are also expected to drive spending on application developments and games for mobile platforms
In 2018, VR games had the highest market share out of all the applications of VR
Latin America’s new video game federation has
developers from eleven countries working together to
give a boost to the gaming market in the region
The Argentinian studio, OKAM, formed in 2010, came up
with its first virtual reality title Ship Ahoy!, a multiplayer
nautical battler for HTC Vive and Oculus Rift, on January
10, 2018
The stakes for VR gaming is high in this region with
developers finally planning on making their moves.
GLOBAL DIGITAL GAMING MARKET
20. |
Company Overview: Tencent
Year of establishment: 1998
Headquarters: Shenzhen, China
Key people: Ma Huateng (Chairman)
Employee strength (2017): 44,796
Industry: Video games
Ticker: HKG: 0700
Website: www.tencent.com
Major game titles
PUBG
Arena of Valor
Honour of Kings
Ring of Elysium
Wangzhe Rongyao
20
Growth strategy
Tencent Games plans to capture at least a third of India’s gaming user
base in two years by making a humongous investment of USD 200 Mn
The company presented its new platform, Games Without Borders
(GWB), built by the Tencent Institute of Games, to gather innovative
ideas from game developers around the world. Through this platform,
Tencent aims to foster, promote, and protect outstanding games
Tencent introduced 26 new games in 2018. The company is focusing on
its gaming business to drive growth
Major locations
Asia, primarily Hong Kong and China
North America
Europe
Key numbers (2017)
Net revenue (FY ending Dec. 2017): USD 35.6 Bn
Net revenue (until June 2018): USD 11.1 Bn
Net margin (%): 33
Gross margin (%): 49.2
RoA (%): 15.1
RoE (%): 33.2
Major initiatives
In 2018, Tencent invested USD 474 Mn in Shanda Games. This move will
bolster Tencent’s lead in the local video gaming market
In 2018, the company folded yet another video gaming company into
its empire. Square Enix signed a letter of intent to enter into a strategic
alliance with Tencent
Tencent, which partners with Epic Games to sell in China, announced a
new set of rules for streaming games in the country in February 2019
In May 2018, Tencent signed an MoU with Britain to work closely with
its cultural industries, thereby deepening the co-operation between
China and Britain and setting the stage for Tencent’s further
international expansion
Recent initiatives
In November 2018, Tencent Games announced a collaboration with a
Blockchain eSports platform named SLIVER.tv to create a live eSports
channel that would feature streamers from Method, FaZe Clan, and
NRG. The channel would be powered by Theta rewards, and the users
would be able to buy in-game upgrades and items using the Theta
tokens
GLOBAL DIGITAL GAMING MARKET
21. | 21
Major Companies Foraying into the Gaming Market
Google plans to unveil a new gaming hardware at the Game
Developers Conference in 2019. The service will enable gamers to
stream console-quality games on a cheaper device
The company is likely to offer a “Netflix for games” subscription
service. The three-month demo of Project Stream, which came to an
end in January 2019, enabled users to play Assassin’s Creed
Odyssey on their Google Chrome browsers on Mac, Windows, Linux,
and Chrome
However, it is believed that Project Stream was just part of Google’s
broader gaming efforts, Project Yeti
The plan for Project Yeti is to run high-performance titles, on its own
machines, and then stream them to the devices owned by the
gamers
It has been said that Google had been beta testing the full Project
Yeti streaming service internally. Reports say that the service will also
include an in-game chat function
The Project Yeti console, which is likely to be a streaming-only device,
is presumed to be cheaper than dedicated gaming consoles, such as
Xbox One and PlayStation
Facebook had released its first batch of Instant Games back in 2016 in
a closed beta version. These games could be easily played without
the need for any additional downloads from the app store
Recently, the company revealed that the daily monthly active players
had increased by more than three times in 2018, and that there were
over 6,000 games with over 20 Bn game sessions being played
Facebook reported that it had experienced rapid growth since March
2018, after the company opened up the platform to all the
developers
The company is aggressively expanding its gaming system in multiple
directions. Recently, it added “Play” buttons, which directly link to
Instant Games, to more than 270,000 gaming groups that serve over
90 Mn active users
Amazon, which operates the largest video game streaming service in
the world with its Twitch, is getting serious about video games
The company wants to take the video game publishing industry to
the cloud completely
News reports say that Amazon is working on building a Netflix-like
service for gaming. The new service from Amazon is likely to allow
players to stream games without having to download the individual
titles
GLOBAL DIGITAL GAMING MARKET
22. |
Start-up Overview – Disruptor
Overview
Description – Flying Mollusk is a small
independent studio which aims to create
entertaining and impactful games by making
use of emerging technologies
Founded in - 2013
Headquarters – Los Angeles, California
Website - www.flyingmollusk.com
Industry - PC gaming
Key Initiatives
Flying Mollusk’s psychological thriller, Nevermind, makes
use of Affectiva’s emotion recognition software to sense
a gamer’s facial expressions to detect signs of emotional
distress. Nevermind’s use of biofeedback makes the
game more challenging and surreal
Overview
Description – Lucid Sight primarily focuses on frontier
gaming and its supporting technologies. Their games
are secured by the Ethereum Blockchain
Founded in - 2015
Number of employees – 23
Headquarters – Los Angeles, California
Website - www.lucidsight.com
Industry – PC and console gaming
Funding Information
Number of funding rounds: 3
Total funded amount (USD Mn): 10.5
Number of investors: 6
Nature of funding: VC and HNI
Investor description: BreakawayGrowth Fund,
Salem Partners, Rana Capital Partners
Key Initiatives
The VR gaming start-up released a VR advertising
SDK to help other gaming companies effectively
monetize their VR games. It was founded to help
gaming companies focus on developing engaging,
free, high-quality VR games
Key People
Erin Reynolds
Founder
Michael Annetta
Lead VR Designer
Key People
Randy Saaf
CEO
Octavio Herrera
COO
22GLOBAL DIGITAL GAMING MARKET
23. |
Appendix
23
Reporting
The analyst then creates a report
with the support of his findings and
analysis, with help from an editorial
team.
Problem identification
The analyst identifies key questions
that he/she would like to address
from the market study.
He/she describes the major
challenges that would help clients
understanding the industry,
globally, or for a specific region.
Defining objectives
The analyst then defines the
research objectives and
methodologies which form the
basis of the research.
Information gathering
The next stage of research is
conducted utilizing secondary and
primary sources of information.
They conduct an in-depth study of
the global market, identifying and
understanding its key stakeholders,
drivers, trends, challenges, and
opportunities, covering major
regions such as North America,
Latin America, Europe, Asia-Pacific,
and the Middle East and Africa.
Primary research complements the
secondary research, as and when
required, as it helps gain insights
from the industries directly, by
communicating with senior
executives, key opinion leaders, and
independent consultants who are
experts in their industries, or
specific industry sectors.
Analysis
The qualitative and quantitative
findings from the previous stages
are brought together by specialists
to perform a rigorous analysis. The
regional market trends, drivers, and
opportunities obtained during the
analysis are compared with regional
economic indicators, sector growth
rates, population index, etc., to
ensure consistency of the data.
After consistency is ensured, these
historical and present indicators
help to understand how the market
will perform in the future. The
proprietary forecasting model
factors in all these indicators to
predict the future market
accurately.
GLOBAL DIGITAL GAMING MARKET
Research Methodology
24. |
Appendix
24
About Research on Global Markets
Owned by Netscribes, Research on Global Markets is the go-to platform for global professionals looking for credible and transparent
research on developed and emerging markets. We set ourselves apart from other online market research publishers with our
focused coverage, commitment to data authenticity, simple licensing, and complete user privacy.
Research on Global Markets (ROGM) is a comprehensive source for syndicated market research reports on various emerging, high-
growth sectors across the globe. The reports provide detailed analysis, with reliable market data and information, including global
macroeconomic trends, market size, growth forecasts, competitive landscape, and market share analysis across more than 200
countries.
Research on Global Markets draws from the company’s vast experience in market research and intelligence. It provides tactical and
actionable insights to clients, and enables effective decision-making and strategic implementation.
GLOBAL DIGITAL GAMING MARKET
25. |
Disclaimer
25GLOBAL DIGITAL GAMING MARKET
This report is prepared by Research On Global Markets ("ROGM"), a brand owned by Netscribes (India) Private Limited (“Netscribes”).
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26. |
Office locations Geographical Coverage
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Get in touch with us:
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Kolkata
Mumbai
Singapore
Office Locations & Geographical Coverage
26GLOBAL DIGITAL GAMING MARKET
https://qz.com/780475/us-census-bureau-real-median-household-income-saw-the-largest-recorded-increase-in-history-in-2015-rising-5-2-almost-3000/ (1st driver)
https://stats.oecd.org/Index.aspx?DataSetCode=AV_AN_WAGE (1st driver)
https://www.census.gov/library/publications/2018/demo/p60-263.html (1st driver)
http://www.lsainsider.com/study-us-adult-daily-time-spent-with-digital-media-grows-2-5-hours-in-5-years/archives#sthash.OQaF4ODf.dpbs (2nd driver)
https://www.weforum.org/agenda/2018/10/chart-of-the-day-us-spending-on-video-games-is-now-bigger-than-the-gdp-of-bahrain/
https://www.nielsen.com/us/en/insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-interacting-with-media.html
https://www.speedtest.net/insights/blog/2018-internet-speeds-global/
https://marketingland.com/mobile-now-accounts-nearly-70-digital-media-time-comscore-210094 (2nd driver)
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjonciR9b7XAhUOTo8KHUMRBJQQFggqMAA&url=https%3A%2F%2F
www.reuters.com%2Farticle%2Fus-usa-economy-idUSKBN1810BZ&usg=AOvVaw0ZYNy07sFB6CbkIoFmPYWv (3rd driver)
http://theesa.ca/2017/11/01/strong-video-game-new-report/ ( 3rd TREND)
Essential facts report 2015 and 2017 calculated for 1st trend
Wikipedia search esports started in California. And internet speed in USA (https://www.fastmetrics.com/internet-connection-speed-by-country.php)
https://www.forbes.com/sites/kevinmurnane/2017/08/14/speedtest-ranks-internet-access-speed-in-more-than-100-countries/#2f505a4f65b5 important
https://en.wikipedia.org/wiki/List_of_countries_by_smartphone_penetration (challenge 1)
https://www.creditloan.com/blog/the-state-of-the-40-hour-workweek/ (challenge 2)
https://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/ (challenge 3) important site for data on usa
https://qz.com/780475/us-census-bureau-real-median-household-income-saw-the-largest-recorded-increase-in-history-in-2015-rising-5-2-almost-3000/ (1st driver)
https://stats.oecd.org/Index.aspx?DataSetCode=AV_AN_WAGE (1st driver)
https://www.census.gov/library/publications/2018/demo/p60-263.html (1st driver)
http://www.lsainsider.com/study-us-adult-daily-time-spent-with-digital-media-grows-2-5-hours-in-5-years/archives#sthash.OQaF4ODf.dpbs (2nd driver)
https://www.weforum.org/agenda/2018/10/chart-of-the-day-us-spending-on-video-games-is-now-bigger-than-the-gdp-of-bahrain/
https://www.nielsen.com/us/en/insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-interacting-with-media.html
https://www.speedtest.net/insights/blog/2018-internet-speeds-global/
https://marketingland.com/mobile-now-accounts-nearly-70-digital-media-time-comscore-210094 (2nd driver)
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjonciR9b7XAhUOTo8KHUMRBJQQFggqMAA&url=https%3A%2F%2F
www.reuters.com%2Farticle%2Fus-usa-economy-idUSKBN1810BZ&usg=AOvVaw0ZYNy07sFB6CbkIoFmPYWv (3rd driver)
http://theesa.ca/2017/11/01/strong-video-game-new-report/ ( 3rd TREND)
Essential facts report 2015 and 2017 calculated for 1st trend
Wikipedia search esports started in California. And internet speed in USA (https://www.fastmetrics.com/internet-connection-speed-by-country.php)
https://www.forbes.com/sites/kevinmurnane/2017/08/14/speedtest-ranks-internet-access-speed-in-more-than-100-countries/#2f505a4f65b5 important
https://en.wikipedia.org/wiki/List_of_countries_by_smartphone_penetration (challenge 1)
https://www.creditloan.com/blog/the-state-of-the-40-hour-workweek/ (challenge 2)
https://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/ (challenge 3) important site for data on usa
https://www.nytimes.com/2015/12/21/technology/as-downloads-take-over-a-turning-point-for-the-video-game-industry.html
Annual Reports of EA, T2, etc.
http://www.theisthmus.com.au/2011/10/digital-distribution-changing-the-world-of-games/
https://www.theguardian.com/technology/2016/may/17/video-game-industry-changing-virtual-studios