September 8, 2020
New data from Futuresource Consulting found by the end of this year, the gaming software market will be worth $154 billion, and gaming hardware will end the year at $15 billion, with 51 million consoles shipped.
Much of that growth will be digital as next-generation game consoles will offer an all-digital version, devoid of a disc drive, spurring further digitalization of gaming content access. Indeed, Microsoft just revealed that the Xbox Series S will cost $299, and $499 for the Xbox Series X when they bow on Nov. 10 in the United States.
In the meantime, Nintendo is expected to have a strong year due to less competition from Sony and Microsoft in the first three fiscal quarters, as gamers await the PS5 and Xbox Series X.
“There has been a strong response to the title Animal Crossing: New Horizons, and its timely launch at the beginning of the pandemic,” analyst James Manning Smith wrote in a post. “The title has found success through its appeal across demographics, appealing to young gamers and families, as well as the franchise’s nostalgic older fanbase, offering the perfect escape from a difficult year.”
Futuresource said that beyond next-generation consoles, mobile gaming has remained the fastest growing segment of gaming software spending, largely due to rapid growth in emerging regions. This year, mobile gaming will account for 50% of total gaming software spend, driven by the coronavirus pandemic and social distancing. It is forecast to increase its market share to 52% by 2024 due to its popularity and accessibility in emerging markets.