Video games have been a popular pastime for decades now, but it really seems like the area has gone to a whole new level in recent years.
Players seem to have so much choice these days, both in terms of the games they can play and how they access them. For example, they can turn to mobile devices, streaming, consoles, or PCs to get their gaming fix, while seemingly every genre under the sun is available. Now, new research has attempted to put a figure on the revenues generated by the area, as well as the ever-growing world of competitive gaming known as eSports.
Positive developments
PwC’s Global Entertainment & Media Outlook 2021-2025 report outlines that, overall, there was a 3.8 percent decline in the entertainment and media industry’s revenues last year.
However, despite the fall, it added that there were some positive developments in specific segments. For instance, the analysis revealed that video streaming “boomed” across last year, while it is also set to grow at a compound annual growth rate (CAGR) of 10.6 percent to 2025.
Regular visitors to our site will be pleased to hear that video gaming and eSports are other areas that have been performing well. Revenues in the segment reached $147.7 billion in 2020, while PwC added that a CAGR of 5.7 percent has been projected. This would mean that video gaming and eSports could be worth almost $200 billion by 2025.
The rise of eSports
As we have already touched upon, the idea of growth emerging around video gaming is perhaps not that surprising. After all, there is a range of options now at many people’s fingertips.
However, the rise of eSports has been fascinating to watch through recent years. It has truly become a massive area, with many competitions based around a variety of games. eSports Earnings details how the top titles awarding prize money include the likes of Dota 2, Counter-Strike: Global Offensive, Fortnite, and League of Legends.
The area has also developed in other ways as well. For example, just like with traditional sports, a major betting scene has emerged in relation to eSports. Betway is an eSports betting provider and, at the time of writing, it features odds on events linked to titles including Call of Duty, Dota 2, and StarCraft 2. The competitive nature of the online betting industry is also highlighted in the way that it features a welcome offer for new players. Members can also watch matches while betting too and viewing figures are another area where eSports are thriving. According to recent research by Newzoo, the global streaming audience for gaming will reach 728.8 million this year. Big brands are also embracing eSports and Insider Sport recently revealed how Samsung has agreed to a major sponsorship deal with Guild eSports.
Welcome to the Odyssey! 👀
Guild x Samsung. We’re so excited to welcome @SamsungUK to the #GuildGang family as our Official Display Partner ❤️💙#GoBeyond #GuildSamsung pic.twitter.com/cYE2eZYNOK
— GUILD (@guildesports) June 21, 2021
Virtual success
While things are certainly looking bright for eSports, PwC has highlighted another area linked to video gaming that is also doing well.
Virtual reality was described by the organization as the fastest-growing entertainment and media segment, with its revenues rising by 31.7 percent last year to hit $1.8 billion. By 2025, the area is expected to be worth almost $7 billion. Notable VR gaming releases in recent years have included Marvel’s Iron Man VR from Camouflaj, while Beat Saber became the first VR-only title on Steam’s 100 Top Sellers List in 2019. There have also been lots going on in terms of hardware, with Sony discussing new headset technology in February.
Some big deals are also being struck around virtual reality too. For instance, earlier this month Variety reported that a newly extended agreement between Netflix and Shonda Rhimes included a reference to potential gaming and VR content.
An interesting spotlight
Video gaming has been in a state of near-constant evolution since it first emerged, but it is still fascinating to reflect on the current state of play around the area. PwC’s research has put an interesting spotlight on the issue, as well as the impact that offshoot elements like eSports are now having.
It will be interesting to see how the short-term forecasts in the study pan out, as well as how the role of gaming in society continues to develop across the years and decades ahead.
