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Global games market will reach $70.4 billion in 2013 - Report
Global games market will reach $70.4 billion in 2013 - Report
June 4, 2013 | By Kris Ligman

Newsbrief: Market analyst group Newzoo projects global game revenues to reach $70.4 billion in 2013, reflecting a six percent year-on-year increase. Of particular interest, the report highlights Latin American and Asian-Pacific regions as top growth sectors, with each expected to grow by 11 percent this year.

While the Latin American market is expected to remain small overall ($3 billion in the coming year), Asia-Pacific is expected to reach 477 million players and total revenues of $25.1 billion in 2013, exceeding projected North American revenues ($22.8 billion).

Market projections for 2013:

  • North America: 192 million players
    • $22.8 billion in revenue
    • 2 percent year-on-year market growth
  • Europe, Middle-East and Africa: 446 million players
    • $19.5 billion in revenue
    • 4 percent year-on-year market growth
  • Asia-Pacific: 477 million players
    • $25.1 billion in revenue
    • 11 percent year-on-year market growth
  • Latin America: 116 million players
    • $3.0 billion in revenue
    • 11 percent year-on-year growth
  • Global: 1.23 billion players
    • $70.4 billion in revenue
    • 6 percent year-on-year growth

Other key takeaways:

  • Mobile games represents the biggest projected growth sector, expected to reach 18 percent of global market share in 2013, becoming a $12.3 billion industry.
  • PC boxed/download and casual/social markets tied at 9 percent of projected global market share. Casual/social games are expected to bring in $6.6 billion, over PC games' $6.0 billion.
  • Consoles are projected to continue to hold onto the lion's share of the global market at 43 percent, a slight decrease (one percent) from 2012.
  • Computer screens are estimated to beat out televisions as the dominant viewing device (39 percent versus 36 percent). Mobile devices come in behind both formats, at 25 percent.

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Alex Covic
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I am really interested how they come up with these numbers. As many of you know, a lot of very successful companies do not publish their profits. They don't have to. A lot of companies in the mobile and web-based/Internet market are not on the radar of 'classic' market analysts, nor member of any video game related organization.

Rey Samonte
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What's interesting is that despite the growth in how much money is in the industry, we still see so many studio closures and layoffs. Is the game industry just wasteful with its resources that whatever increases there are doesn't outweigh the costs?

Jakub Majewski
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Short answer: yes.

Long answer: let me use an analogy. Imagine the shipbuilding industry in the 19th century. Unprecedented growth - international trade is booming, thousands of ships are needed. But there's a problem - everyone wants those newfangled steamships, preferably with metal hulls. Shipyards specialising in metal steamships are booming, their growth is enormous. In their shadow, however, any number of shipyards specialising in wooden sailships are going out of business, and thousands are out of work.

The growth of an entire industry never equates with the growth of all its parts. Everyone has to continually adapt to changing circumstances, and those that don't - fail.

Rey Samonte
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Great analogy Jakub. I can see that. Thanks.

Peter Eisenmann
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Do 3DS and PSVita count as "Mobile" or "Console"?

Thom Q
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Uhh.. Why: "Europe, Middle-East and Africa: 446 million players"..

Is there a reason those markets are bunched together?

Bevan Davies
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Because if they didn't Europe would look like a more important market than North America.

You'll also notice they group all console formats together, so "console" appears to be the bigger market, where in reality PC is bigger than any single console format.

Huge amounts of spin to suit the powers within the market.