The game industry is massive compared to other industries. In 2019, it had $145 billion in revenue, making it larger than the film and recorded music industries combined. In 2020, it is expected to surpass these industries as revenues continue to rise. The recent COVID-19 pandemic has also increased gaming sales, causing a 30% increase in the number of people who play games in the U.S.
As the industry continues to grow, it is likely to surpass the film and sports industries. According to IDC, global video game revenues are expected to surpass $179.7 billion in 2020. The largest gain is expected in mobile gaming, which is expected to increase 24 percent to $87.7 billion in 2020, thanks to a global COVID-19 pandemic. In fact, the movie and sports industries have declined due to the pandemic.
As video games continue to grow, the video game industry must also find ways to spin more revenue from its intellectual property. As of now, video game merchandise ranges from t-shirts to figures and mugs, and comic books to novels and TV shows. The long-rumored movie may become a standard approach for successful video game series. While there are many potential avenues for monetization for the video game industry, it is difficult to compare the industry with other industries without having detailed information about the size of each industry.
The video game industry is also a significant source of indirect revenue. Direct revenues are relatively small compared to the indirect revenue generated by in-game advertising, and there is a potential that some popular game engines will move from user growth to monetization. New entrants could put downward pressure on industry margins and compete on revenue splits of ever smaller proportions. In addition to these direct revenues, indirect revenue from mobile devices, game streaming, and gaming accessories and hardware will also benefit the industry.
