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

Digital Transformation Growth Defies Market Volatility

The forward-looking CEO's commitment to ongoing investment in Information Technology (IT) is persistent. Worldwide IT spending is forecast to total $4.4 trillion in 2022 -- that's an increase of 4 percent from 2021, according to the latest worldwide market study by Gartner, Inc.   "This year is proving to be one of the noisiest years on record for CIOs," said John-David Lovelock, vice president at Gartner . Regardless, digital transformation remains a high priority across the globe. Geopolitical disruption, inflation, currency fluctuations, and supply chain challenges are among the many market volatility factors vying for attention, yet contrary to what Gartner saw at the start of 2020, enterprise CIOs are accelerating IT investments in 2022. Digital Transformation Market Development As a result, purchasing and investing preferences will be focused on areas including data analytics, cloud computing, seamless customer experiences, and IT security. Inflation impacts on

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut