February 21, 2017

Gaming Industry: Mobile Fruition and F2P Masterminds $100B Games Market

A topical report by Juniper Research says that revenues from global digital games market are set to break the barrier of $100 billion by the end the year and is expected to reach at $132 billion by 2019.

The research company cites that mobile fruition and F2P (Free to Play) masterminds the irresistible global games market tumor; branding five mobile games publishers with (key games) fueling the outgrowth:

1. Supercell (Clash Royale)
2. King (Candy Crush Saga)
3. MZ/Machine Zone (Mobile Strike)
4. Niantic (Pokémon Go)
5. MiniClip (8 Ball Pool)

Previously SuperData and Newzoo also forecasted the global digital games market to hit $91 billion in 2016. SuperData in its Market Brief – Year in Review 2016 said that interactive entertainment generated $91 billion in revenues in 2016.

1. Mobile ($40.8 billion),
2. PC ($35.8 billion),
3. Console ($6.6 billion),
4. Gaming Video ($4.4 billion),
5. VR ($2.7 billion),
6. eSports ($0.9 billion)

The study also underscores the Asia’s hegemony in Free-to-Play (F2P) PC games market with revenue of $18.6 billion in 2016 and forecasts the market to reach at $21.3 billion by 2019. In F2P PC Games segment, the following were the top-5 games by revenue for January 2016 – November 2016:

1. League of Legends ($1.7 billion),
2. Dungeon Fighter Challenge ($1.1 billion),
3. CrossFire ($1.1 billion),
4. World of Tanks ($0.40 billion),
5. DOTA-2 ($0.28 billion)

New Study Reveals Global Games Market has already Hit $100 billion Mark

Newzoo has updated its estimates for Global Games Market which imparts that Top 100-Countries by Game Revenues - 2016 has already bolstered to near $100 billion, $99.6 billion to be precise at YoY growth of 8.5%. Just three countries (China, United States, and Japan) contributed $60.2 billion with a predominant market share of 60.6%:


Average internet-user revenue generation by country for 2016 was:

1. Japan ($104.4)
2. United States (93.5)
3. South Korea ($87.9)
4. Luxembourg ($76.7)
5. United Kingdom ($65.0)
6. Singapore ($672.1)
7. Ireland ($57.5)
8. Norway ($57.4)
9. Australia ($57.4)
10. Germany ($56.9)

China, the leader in global games market – 2016 is ranked 27th in this category with an average of merely $32.5; even below than Hong Kong ($34.6), Taiwan ($44.4), Qatar ($51.0), and Macao ($56.6).

All-Time Best Selling Games by Revenue

fandom lists all-time highest-grossing games by revenue across platforms; including arcades, consoles, computers, mobiles, and online transactions:


1.  World of Warcraft (2004 – 2015); Activision Blizzard; $9.27 billion
2.  CrossFire (2007 – 2015); Smilegate; $7.13 billion
3.  Street Fighter II (1991 – 2008); Capcom; $6.15 billion
4.  Wii Sports (2006 – 2012) ; Nintendo;$5.19 billion
5.  Lineage (1998 – 2016); NCsoft; $4.75 billion
6.  Monster Strike (2013 – 2016); Mixi; $4.53 billion
7.  Pac-Man (1980 – 2012); Namco; $4.47 billion
8.  Wii Fit (2007 – 2013); Nintendo; $4.43 billion
9.  Dungeon Fighter Online (2005 – 2015); Neople; $4.37 billion
10. Puzzle & Dragons (2012 – 2015); GungHo Online Entertainment; $3.85 billion
11. Space Invaders (1978 – 1982); Taito; $3.85 billion
12. Fantasy Westward Journey (2001 – 2015); NetEase; $3.69 billion
13. League of Legends (2009 – 2015); Riot Games; $3.59 billion
14. Candy Crush Saga (2012 – 2015); King; $3.05 billion
15. Wii Sports Resort (2009 – 2013); $2.84 billion

Global Mobile Games Market – 2016

Can’t Stop, Won’t Stop: The 2016 Mobile Games Market”, a report released earlier this month, believes that the mobile games market propelled a revenue of $40.6 billion in 2016; over 60% of the global mobile games market.


The report covers the combined mobile, mobile VR, and VR markets and is produced jointly by SuperData and Unity Technologies. “Mobile games earned the equivalent of all box office sales in 2016.”

“After blockbusters Unity titles like Super Mario Run and Pokémon Go, the mobile market grew 18% in 2016 year over year and accounted for half of the entire digital games market.” “It is also attracting big players live Activision Blizzard’s $5.9B deal to buy King and Tencent’s $8.6B payout for Supercell.”

The analysis suggests Asia as the largest mobile games market in the world that produced $24.8 billion of revenue in 2016; 359% of North America’s $6.9 billion and 435% of Europe’s $5.7 billion. China, Japan, and Korea are the three Asian countries, spent the most to make in-game purchases and led Asia to lead globally.

Clash Royale vs. Pokémon Go

Supercell’s Clash Royale and Pokémon Go by Nintendo also drove robust growth in mobile games market for 2016. Finnish company Supercell is the maker of mega-hit mobile game, Clash of Clans and Clash Royale, and is owned in majority by China’s Tencent Holdings who bought most of its shares last year for $10 billion.

Ilkka Paananen, CEO and co-founder of Supercell, gave financial highlights for the year to Reuters that the company’s sales remained flat at $2.3 billion in 2016, challenged by Nintendo’s Pokémon Go. However earnings before interest, tax, depreciation, and amortization (EBITDA) hilled to $967 million in 2016 from $848 million in 2015.

Released on March 2, 2016 worldwide, Supercell’s Clash Royale bred eye-watering gross revenue of $1 billion within first year (11-months) of its launch, says Sensor Tower. “In its first 11 months of availability, Clash Royale has grossed approximately five times as much as Clash of Clans did during the same length of time.”

Nintendo’s Pokémon Go after its release on July 6, 2016 in the United States, on the other hand, also produced revenue of over $1 billion dollar just in seven months. By comparison, Clash Royale realized revenue of only $550 million worldwide for the same period, estimated by Store Intelligence.