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Digital Disruption Report

Video Games - Thematic Research

The video games industry is evolving rapidly

Streaming is the future… Cloud gaming is evolving into a global phenomenon. Major games companies are racing to become the Netflix of games, driven by rapidly increasing viewership on existing streaming channels. However, latency and bandwidth limitations will serve as a brake on the development of mobile gaming services.

The maturing of cloud technologies and development of 5G will reduce these network issues, creating an increasingly competitive market in which several leaders have already emerged.

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  • What you need to know...
  • Mobile gaming has already outstripped the console and personal computer (PC) markets.
  • Over the coming years, with the increased maturity of streaming (supported by 5G), cloud services, and mobile esports, combined with the fact that mobile platforms are close to technical parity with their PC and console rivals, more gamers will shift towards mobile gaming platforms, driving the expansion of this market to over $100bn by 2022, up from $55bn in 2018.
  • New technologies like 5G, cloud, and virtual reality (VR) will usher in a new phase of innovation, while new business models like support for in-game micropayments are already changing the economics of gaming.

Focus on short term goals with technological backup is the success mantra in the video games market. Sony and Microsoft are the best positioned companies at both a software and hardware level.

GlobalData’s Video Games – Thematic Research report analyses this further.

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