As in other branches of digital entertainment, during the last 8 years, the video game industry has evolved enormously and has grown exponentially. Derived from many social and economic variables, including the Covid-19 pandemic, the industry has reached record levels of revenue and valuations.
According to Newzoo.com, in 2012, the gaming industry had revenue of about $ 70 billion, which at the time seemed like a record revenue valuation. Few analysts and industry executives were able to predict the growth that 2020 would represent, market revenue doubling just 8 years later. Undoubtedly, the pandemic has been the main trigger for growth, since video games have been a blockbuster alternative to other forms of entertainment as a result of constant shutdowns in large cities, which have sadly seen their income plummet, including the film industry or live shows.
Other interesting data published in Statista.com 2021, is that by June 2020, the global average of time spent on video games had increased by 39% year-on-year, console sales increased by 155% and digital game sales. increased 56%.
The gaming industry has been led by few companies, but over time small players have entered the market and have also shown growth. Last year, the top companies were: Sony, which made $ 25 billion in revenue from its games department thanks to the launch of its new console, the PlayStation 5. Nintendo had $ 12.1 billion in revenue when it launched Animal Crossing : New Horizons, which became their most profitable product followed by the famous Nintendo Switch. Epic Games was also ranked as one of the largest game companies of 2020, and its most profitable game is Fortnite, one of the most popular and controversial video games globally. The latter had revenues of $ 4.2 billion.
It is estimated that by the year 2026 the market valuation will be around 314 billion dollars, which, when putting things in perspective, is not surprising. According to Vexhost.com, 2021, investors were quite skeptical of the gaming industry during the first half of last year, but in the wake of the pandemic its resilience and appeal became apparent and unstoppable.
It will be interesting to see what the second half of 2021 brings to the industry with normal settling in in many countries, with students returning to schools, and with a shortage of chips and other electronic components. It will not be strange to see more regulation regarding possible psychological and harmful effects on users, particularly minors.
