The Global Video Game Market Currently Makes Over $100 Billion in Revenue

From small beginnings to billions

When we all played Prince of Persia on our Intel 486’s in the 90s, we never imagined that gaming would ever go from a small assortment of pixels on the screen to a full VR experience that is available today.

With platforms and games that can cater to any individual’s gaming desire, the gaming industry is a huge market, that’s been growing faster in the last decade than ever before. With technology advancing rapidly and with games breaking new grounds in graphical and gameplay advancements every year, it doesn’t seem to be slowing down anytime soon.

With the video game industry breaking $100 Billion in sales this year, experts predict that it will reach as much as $132 Billion in total revenues by 2021.

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The growth of an empire

The video game industry today is primarily fueled by mobile games and free-to-play games. Free-to-play games, until paid to unlock its full features, are a sort of demo where players can try the free version of the game to see if they like it, but eventually reach a milestone in the game where progression would be slowed or halted if real money isn’t invested in it. Free-to-play contributed much to the total revenue of the industry by offering players a chance to play the game for free, but must pay additional costs if they wish to unlock the full potential of the game.

However most free-to-play games have some kind of in-game shop where players can purchase features that would normally be locked to players who play it for free. They also have the option of a subscription which in turn provides a constant source of income to the industry. 

Traditional sales, such as digital downloads, don’t stimulate the gaming industry as much financially but are still an important part of it.

CRASH: The Year Video Games Died

Many people also fear that the giant video game industry bubble is about to burst.

A bubble waiting to burst

With the industry growing out of control so fast, many fear that its economic bubble is about to burst. As game prices skyrocket to an average of $60 for a brand new title, this is a very strong contrast to pre-2000 where a game cost about $20 on average. The rise in production costs and prices could also attribute another $20 increase in prices.

At that point, a game costing almost $100 might become unappealing to most gamers as Steam currently receives about 50k refund requests every day. Clearly, as vast and as varied as the industry is, it clearly prioritized technological advancements (such as better graphics) in lieu of replayability and just good old gameplay. 

All presentation no substance seems to be a theme that’s inherent in new titles and with the rise of the indie game developers, the AAA titles and the major part of the industry might be in trouble indeed.

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