Skip to main content

Video Game Software Revenue to Reach $24B by 2017

Demand for casual user online video games has grown significantly over the last few years, particularly on mobile devices -- such as smartphones and media tablets. Regardless, personal computer gaming is still in vogue with its loyal traditional fan-base.

A recent digital gaming software and services forecast from International Data Corporation (IDC) concludes that PC and Mac gamer spending and direct banner/video advertising outlays -- across all digital channels -- will grow to over $24 billion worldwide by 2017.

The forecast also found that global digital PC/Mac game revenue will rise about 4 percent per year between 2012 and 2017.

North American digital PC/Mac gaming revenue, however, is forecast to slip at the margins over the forecast period.

This market share slide is mainly the result of the cannibalization of casual-leaning, browser-centric games -- typified by Zynga's Farmville 2 -- by smartphones and tablets.

The market share shift is also compounded by a steady drop in hardcore gaming subscription revenue -- as an example, Blizzard Entertainment's World of Warcraft.

Largely driven by rising living standards in Brazil, Russia, India, and China, plus the inability of game consoles to establish much of a beachhead in key developing economies, digital PC/Mac gaming revenue outside North America should expand by more than 5 percent per year through 2017.

"Other than the casino genre, it's been tough sledding for most casual-leaning PC game genres in the past year," said Lewis Ward, research director, gaming at IDC.

IDC belives that most of the growth is coming from hardcore-oriented freemium titles -- such as Tencent's and Riot Games' League of Legends, Valve's Team Fortress 2 and Dota 2, Wargaming.net's World of Tanks -- and a handful of Chinese MMORPGs.

The forecast also notes that Valve's Steam service has a significant opportunity to expand into North American and Western European living rooms in the next few years -- based on the company's Steam Machines initiative.

According to the IDC assessment, demand for prepaid digital games should remain stable if not rise at the margins through 2017 partly because key developers, publishers, and platform providers will ramp up their offerings on HDTVs.

The difference between what PCs, consoles, microconsoles, and perhaps even smart TVs will be able to deliver three years from now will be mostly semantic.

The platforms that outperform will have great games, a wise mix of business models, an ability to strain key customer insights out of a sea of big data, and offer great a social experience.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of