Global gaming revenue is expected to reach $174.9 billion by the end of this year, up 19.6 per cent than the last year, according to a new report by Newzoo.
This is $15.6bn higher than the previous forecast that the Amsterdam-based market research company made during the early months of the Covid-19 pandemic in May.
“Armed with companies’ financial results for the first half of 2020, we can now see the impact of increased engagement on game spending more clearly,” Tom Wijman, senior games market analyst at Newzoo, said.
“Exactly how sustainable this growth is remains to be seen and is dependent on many factors … we anticipate that the market will continue to grow, generating $217.9bn in 2023,” he added.
The gaming industry – split into mobile games, e-sports streaming, console purchases and more – is currently the most profitable form of entertainment in the world.
Consumer appetite for gaming rose rapidly in 2020 with the creation of new platforms such as Apple's Arcade and Google's Stadia. Movement restrictions due to the Covid-19 pandemic also propelled users’ interest, industry experts said.
Asia-Pacific region will see the maximum spend on gaming at $84.3bn, an annual growth of more than 17 per cent. It will be followed by North America ($44.7bn), Europe ($32.9bn) and Latin America ($6.8bn). The Middle East and Africa region, where consumers will spend $6.2bn on gaming this year, will see the fastest yearly growth globally at 30.2 per cent.
China and the US remain the two biggest markets for the gaming industry. Together, they represent 49 per cent ($85.3bn) of the world’s games market in terms of consumer-generated revenues.
The increased engagement and revenues resulting from the pandemic will ripple into 2021 and beyond, said Newzoo.
“Based on engagement metrics of the past months, we see that consumers are continuing to engage with gaming more than they did before the pandemic … even in markets where lockdown measures have long been lifted,” Mr Wijman said.
“While some consumers may play less after the pandemic ends, all signs point to a significant chunk of revenue growth and engagement being permanent.”
Mobile gaming is the largest segment by revenue, according to Newzoo. It will generate $86.3bn in 2020, up from the previous forecast of $77.2bn.
Meanwhile, the console games and the PC games will generate $51.2bn and $37.4bn respectively.
The Middle East region is one of the fastest-growing gaming markets in the world, a whitepaper released by YouGov on Monday showed.
The top mobile games played in the region include PUBG, Intikam Al Salatin, Fortnite and Rise of Kingdoms.
Regional players such as Beirut-based gaming studio Falafel Games and Amman-based Arabic mobile games publisher Tamatem have also started to gain traction by developing culturally-relevant content.
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The biog
Name: Shamsa Hassan Safar
Nationality: Emirati
Education: Degree in emergency medical services at Higher Colleges of Technology
Favourite book: Between two hearts- Arabic novels
Favourite music: Mohammed Abdu and modern Arabic songs
Favourite way to spend time off: Family visits and spending time with friends
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