Newzoo's latest quarterly update for its Global Games Market Report forecasts that the global games business will grow to $108.9 billion this year, with mobile devices (smartphones and tablets) generating a lion's share of the revenue. Newzoo called mobile the "most lucrative segment" while noting that it should grow 19% year-on-year to $46.1 billion, which would represent 42% of the market. By 2020, mobile gaming will represent just over half of the total games market, the firm said.

While mobile includes tablet gaming revenues, the sector is clearly dominated by smartphones. Of the $46 billion expected this year, Newzoo said $35.3 billion will come from smartphone gaming; at the same time, tablet unit sales "have plummeted," Newzoo commented. Even so, there are 280 million tablets being actively used worldwide, contributing more than $10 billion to worldwide gaming revenues.

One of the big reasons for mobile's continued growth is the rise of China's gaming market. Overall, APAC territories will generate $51.2 billion (47% of the global total) this year, Newzoo said, and China will be responsible for one quarter of all global game revenues, reaching $27.5 billion this year. That's notable because it outpaces the US games industry, which is expected to reach $25.1 billion. Mobile revenues in China, expected to be led mostly by Tencent and NetEase, should come in at $11.2 billion for 2016, Newzoo said, and that's expected to rise to $14.6 billion this year.

Looking at the console and PC gaming segments, Newzoo said that console gaming should generate a total of $33.5 billion in revenues worldwide, with almost two-thirds of that coming from digital.

http://www.gamesindustry.biz/articles/2017-04-20-mobile-games-booming-as-global-games-market-hits-usd108-9b-in-2017-newzoo

It is great to see gaming continue to grow. I hope that in time the PlayStation, Xbox/Surface, and Switch Ecosystems start to claw back some more market share as we see more form factors deployed.

I am also interested to know how much of this they expect to come from VR. I know right now things are slow, but their is a lot of content coming starting in May that should start to put the spotlight back on VR. Then with Microsoft jumping in with XBO and Scorpio next year, we should start to see a real push.

I think in the long ruun gaming is going to be the biggest industry on the planet. It allows everyone to live out their dreams and fantasies, and with every new generation the momentum should grow. In 50 year there will not be almost no one left that grew up without the magic of games, and Great Grandparnets will be able to game with their Great Grandchildren. It is going to be beautiful digital world.

Been saying it for years now.

This is why Switch has to go upmarket and focus on big experiences.

If the contest is buttons vs. free games ... free games have been kicking the shit out of dedicated portables and will continue to do so. "Free" is the killer app on top of the slick, user friendly package smart OS' offer. 

You need to go upmarket and create a bigger difference that the consumer cannot deny.

We went from 230 portables (150 mill DS + 80 mill PSP) sold in one gen to 1/3 (65 mill 3DS + 14 mill Vita) of that in about six years time. That means almost 70% of people who purchased a portable game machine last gen have not come back this gen. 

That's a lot of dough

Which is why I don't see the switch lasting long..... 

Unless the Switch goes "upmarket" and "focuses on big experiences".

I think they have a shot with the whole Wii 2.0 concept with the joy cons.... but the core audience isn't too big hey are like Wii U big

I thought the 108.9 comes from the total, and mobile making 32% of that number?

Still is massive though, and definitely will increase over time

This is in trouble:

If it has to compete with this:

The problem here is FREE beats buttons. By a mile, for most people. And for many people who are not very good at video games, no buttons and more simple interfaces is actually a bonus not the negative. A lot of people on this board don't grasp these two concepts. Free > buttons, smartphone convienance and accesibility > dedicated portables. Free is huge, huge, huge. 

You have to go to a higher point today to justify the portable gaming concept and the large problem of asking people to pay for portable games these days. So yeah absolutely, this goes to another level:

Combined with the ability to play HD games on TV, the above can appeal to core gamers. Switch has to maintain a large group of gamer enthusiasts. Which is a good thing. The library will be better in the long run for it. 

You can call it what you want, but the game has changed. The same ol' stuff portables have been doing for the last 15 years doesn't cut it anymore, you gotta bring a lot more to the table if you're going to have an audience interested in spending their money. 

Compelling points. Thank you.