Search this website
Image Credit: Reuters
The mobile gaming industry has crossed the revenue generated by PC and console gaming industry for the first time. According to a recent report by Venture Beat, DFC Intelligence reported that mobile games exceeded PC and console revenue in 2016. To put that in perspective, this means that casual gamers who game at their leisure are spending more money on games than the ones who have dedicated gaming console and PC’s built for gaming.
The report points out that the mobile gaming market increased by 32 percent to reach about $38 billion in terms of revenue in 2016. Technology companies like Tencent and NetEase in China doubled their revenue. Between these companies, NetEase pushed Tencent to the second spot to grab the top spot for the mobile publisher in 2016 despite the fact that Tencent remains the largest gaming company across the globe.
One should note that Tencent maintains this feat by establishing its presence in PC gaming industry as well as with the help of its subsidiaries like gaming studio Riot who developed ‘League of Legends’. The company is valued at $316 after it reported a 58 percent increased in the first quarter of 2017.
Newzoo, a market analyst firm has estimated that mobile gaming industry will reach the $65 billion mark by 2020 from the $38 billion in 2016. DFC analyzed about 30 companies and concluded that market will move to more complex games as the casual and social casino games have started peaking. Complex games would mean that there would be more crossover from the console and PC game publishers. Companies like Square Enix have done that with Hitman Go and Final Fantasy Brave Exvius as mentioned in the report.
The report points out that Electronic Arts and Activision Blizzard are two players to watch out in the Mobile gaming industry. These two players are expected to grow at a tremendous rate in the near future.