Estimates have the video games market rising to a generate $300 billion in revenue by the year 2025 according to a new report from GlobalData.
In 2018, the market generated $131 billion, with mobile gaming outpacing revenue by PC and console gaming. However, with the addition of cloud gaming and VR gaming and continued advancements in mobile gaming, there’s apparently plenty more market value to exploit.
Ed Thomas, GlobalData’s principal analyst, says in a statement: “Today’s video games industry is in the throes of a huge transformation from a product-oriented business to an as-a-service model. At the same time, new technologies like 5G, cloud, and virtual reality will usher in a new phase of innovation, while new business models like support for in-game micropayments are already changing the economics of gaming.”
The comments come as the success of games like “Fortnite” and “Apex Legends” sees games moving away from standalone titles towards games as a service that are free-to-play with optional in-game purchases.
In addition, cloud gaming is expected to surge as major games companies race to become “the Netflix of games” even as latency and bandwidth limitations will slow down development on that front.