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Data from Juniper Research has found that revenues generated by digital games will be just over $80 billion this year, a figure which is expected to rise to $104 billion prior to the end of 2018. The main driver for this will be PC gaming, which alone could account for 42% of games revenue.
The line between PC gaming and console is blurring, particularly as Microsoft brings Windows 10 to the Xbox One later this year. November’s update will bring a raft of new features such as cross-play between the PC and Xbox, as well as the arrival of DirectX 12 which makes it easier to port between the devices and will open up further revenue opportunities for developers.
Mobile has been the biggest driver of the “Free-to-Play” model
According to research author Lauren Foye: “As digital purchases gain favour with consumers, we will see a drive in sales during the lifecycle of the current generation of consoles. Newly emerging technologies such as Virtual Reality will aid in consumer adoption, as the console continues to evolve to become the home entertainment centre.”
This generation of consoles is still in early days, and yet is growing much faster than last which shows that consumer appetite isn’t going anywhere soon. Software revenue generated by this segment will reach $27 billion by 2018, up from an estimated $21 billion this year.
Another driver for digital revenue is mobile platforms with a market share predicted to approach 35% by 2020. Mobile has been the biggest driver of the “Free-to-Play” model which offers the base game free, and offers subsequent items or methods of progression for a fee through in-app purchases.
Free-to-Play is now often used in PC gaming, and has even made its way to console. Just this morning game studio Bungie announced their popular MMO console title, Destiny, will feature microtransactions as of next week. The model is often accepted for as long as the paid items are cosmetic or not required for progression, and don’t offer players who pay a significant advantage.
Are you surprised at the revenue being driven by digital games? Let us know in the comments.
