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.
