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Wednesday, July 23, 2014

Cloud Video Games Market will Reach $1 Billion Revenue

Competition among the different video game platforms is increasingly fierce due to a couple of key reasons. First, new console hardware providers enter the market with their generally cheaper devices, while on the other hand gamers are offered a new means of playing via mobile phones.

According to findings from the latest market study by Juniper Research, global revenues from PC and console video games will decline from $46.5 billion this year to $41 billion by 2019.

The Juniper study reveals that despite the decreasing sales of console hardware and increasing significance of mobile platforms, PC and console video games will still account for over 50 percent of industry revenues over the next 5 years.

Global revenues from software sales on both the PC and console platforms will remain relatively healthy, with PC video games software sales exceeding sales on the console platform.

Juniper also found that the new generation of consoles will create a short-term uplift in video game software sales, which is then expected to slow down as the lifecycle of the hardware progresses.

They also believe that a 9th generation of video gaming consoles is likely to arrive around 2019 -- assuming a similar console lifecycle to previous iterations, which is also likely to provoke a longer term software spike.


Upside for Cloud Video Game Revenues

The Juniper study highlights that the cloud games market will reach $1 billion in revenues -- that's a growth of almost 30 percent on the 2014 figure of $281 million.

The increase is a result of the launch of online services, such as the PlayStation Now, and rising interest from mobile network operators to augment ARPU by adding cloud games alongside traditional smartphone services.

Other Findings from the market study include:
  • Multiplayer online battle arena games, such as League of Legends and Dota2, will continue to be among the most popular genres on the PC platform.
  • Handheld devices will continue to struggle in attracting gamers, and revenues from this platform will shrink to under 2 percent of the total games industry sales by 2018.
  • The increasing availability of online video game streaming platforms, such as Twitch, supports the surge in popularity of eSports, or professional gaming.