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Results of 2021: due to quarantine, the gaming industry brought in more money than cinema and American sports combined
27.12.2021 [18:22],
Konstantin Khodakovsky

Modern games began to resemble competitive interactive films, and the COVID-19 pandemic (more precisely, quarantine measures) allowed the industry to make more money than films and North American sports combined. By the way, we have already written something about the results of the year in the application to the industry of interactive entertainment.

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According to IDC, global video game revenues will grow 20% to $ 179.7 billion in 2021, making video game production more profitable than the global film industry and the entire North American sports industry combined. According to the Motion Picture Association, film industry revenues in 2021 reached $ 100 billion for the first time, and according to PwC estimates, in 2021 North American sports will bring more than $ 75 billion.

However, both of these industries were hit hard by the impact of the COVID-19 pandemic in 2021, while the video game industry, by contrast, is showing double-digit percentage growth. Experts predict explosive growth will continue in 2021 thanks to the recent launch of a new generation of Sony and Microsoft game consoles and new games – even as the quarantine measures are lifted.

“I think growth will slow as soon as effective, cheap, globally available vaccines become available, but I am very confident that by the end of 2021, billions of people will still need vaccines,” IDC’s director of gaming told MarketWatch. research by Lewis Ward. – So, I think the slowdown will happen in 2022 “.

The video game industry has been booming in recent years due to the variety of platforms and game methods. Sales are growing across all sectors: digital sales of big titles, mobile games, shareware projects with micropayments, cross-platform games, streaming services like Google Stadia, subscriptions like Microsoft Game Pass, Steam analog stores, VR and so on.

Although console sales will grow with new systems, it is not the largest segment in the industry, nor is it the fastest growing. According to Mr. Ward, the largest increase is expected from mobile games – a huge share is made by China, where this sector is actively developing along with the proliferation of smartphones and tablets. Excluding in-game ad revenues, global mobile game revenues are expected to grow 24% year-over-year to $ 87.7 billion.

Everyone has smartphones, they are sometimes very cheap, this is not specialized gaming equipment, and therefore mobile games are naturally in increasing demand. The ban on gaming consoles, only recently lifted in China, also contributes to the dominance of mobile gaming. Today, China accounts for only about 1% of the console market, while the country contributes the most to the growth in demand for mobile games in the Asia-Pacific region: today this market is valued at $ 56.6 billion, up 25% from last year. Two companies, Tencent Holdings and NetEase, account for more than half of the market share of the Chinese mobile games market. Outside China, the mobile gaming market is dominated by companies such as Activision Blizzard, Zynga and Glu Mobile.

At the same time, the global revenue of the console market, including systems, games and services, will grow globally by 20% compared to 2021 – to $ 52.5 billion. At the same time, the global PC gaming market will grow by 11% compared to last year – up to $ 39.5 billion. Unlike the revenue of the gaming console market, IDC does not consider hardware sales when evaluating the mobile games and PC market. According to Mr. Ward, revenue from computer games would have been greater if it were not for the widespread closure due to the COVID-19 pandemic of the still very popular Internet cafes in China.

Interestingly, the stocks of the three largest publicly traded American video game publishers surpassed the S&P 500 average of 14%, with Activision Blizzard up 49%, Electronic Arts up 30%, and Take-Two Interactive up 64%.

“After the end of the quarantine, publishers may face difficulties as consumers are likely to reallocate time and budget to areas that have been closed and are still partially inaccessible (for example, travel, restaurants, cinema, theme parks, concerts, casinos),” they said. JP Morgan analysts. “Growth in 2021 will not be as strong, and stock price performance will depend on the performance of the main game series and investor enthusiasm for plans for new games – these factors, in our opinion, favor Activision and Zynga.”.

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