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How Covid-19 will push games market to exceed $200 billion by 2023

By Juliet Umeh

A new report by a global provider of games and esports analytics, Newzoo, has forecasted that in the next couple of years, the games market will grow to exceed $200 billion by 2023 due to Covid-19.

Its previous report forecasted that 2020’s global games market will generate revenues of about $159.3 billion, representing year-on-year growth of 9.3%.

According to the report, mobile games, smartphone gamers accounted for the highest revenue with about 40% of the global revenue at $63.6 billion. Tablet gamers will, however, spend $13.7 billion accounting for just 9% of the entire revenue generated in 2020.

Covid 19

It said: “After mobile, Game consoles like PlayStation contributed about $45.2 billion of the total revenue in 2020. This is 28% of the globally tally, making it the second-highest contributor.

PC games will contribute about $36.9 billion, which will account for 23% of the global revenue. PC and downloaded games will contribute about $33.9 billion of total revenue while PC browser games will generate approximately $3.08 billion in 2020.”

The report attributed the increased interest rate in gaming to the COVID-19-related lockdown measures. It also highlighted the looming launch of next-generation consoles like PS5 toward the end of the year as a key contributing factor to the forecasted numbers.

How COVID-19 contributes to gaming boom

Newzoo said: “All segments of gaming enjoyed an increase in engagement and revenue due to COVID-19. This is because gaming is among the suitable alternative available with cinemas closed.

“Mobile gaming saw the biggest increase in engagements this is because many mobile games are free to play and it generally has the lowest barrier to entry.

More than two-fifths of the global population owns a smartphone, so it will be easier for people to easily download a game and start playing,” it said.

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