Technological breakthroughs over the past several decades have opened the door for smaller, more powerful, and less expensive circuit boards, which, in turn, have allowed programmers to disrupt entertainment as we know it. Gaming, which began as a collection of experiments in cutting edge college labs in the 1950’s made way for the dimly lit arcade era in the 1970s, until home consoles arrived in the 1980s and 1990s. Since then, with the ubiquitous presence of mobile phones, gaming has finally arrived on the world stage as consumers in emerging markets (EM) joined the competition.
Highlights from the Growh of Gamers in Emerging Markets:
Gaming in the Emerging Markets: EM will likely become the primary growth driver as emerging economies continue to experience increasing levels of mobile penetration and internet connectivity. Consumer spending on games is expected to growth $196 billion by 2020, and mobile gaming will grow to represent almost half of the entire games market by 2020.
New Revenue Opportunities: Mobile gaming helped increase the market size by making gaming more accessible across the world without needing cost prohibitive consoles. Cloud gaming will be the next step in the gaming evolution where people can compete cross-platform and across any geography.
Esports: Esport revenues are expected to climb 26.7% year-over-year to $1.1 billion in 2019, with China leading demand. Esports audiences also continue to grow rapidly, with 15% expected growth for 2019 to 454 million total esports followers, driven by higher spending esports enthusiasts.