PC game revenue to hit $33.4 billion in 2018 - PC Retail

PC game revenue to hit $33.4 billion in 2018

'Core gamer spending on high-end PCs, dedicated game devices and accessories is starting to soar,' explains analyst
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Global PC game revenue is to hit $33.4 billion (£19.7bn) in 2018, an analyst has told PCR.

DFC Intelligence owner David Cole said that PC games are expected to rise from an estimated $26.3 billion (£15.5bn) in 2014 to $33.4 billion in 2018.

Cole highlighted a resurgence in popularity for gaming systems as driving the growth.

“Core gamer spending on high-end PCs, dedicated game devices and accessories is starting to soar,” he stated.

“When you add in mobile devices the impact of the gaming consumer on total hardware spending is huge.

“The influence of this spending will have a bearing on all major players in the consumer electronics space.”

Cole previously told PCR that PC games had surpassed console games in terms of revenue.

The comments followed the prediction of DFC's Worldwide Market Forecast for the Video Game and Interactive Entertainment Industry that total worldwide revenue for PC games, console games and mobile games will rise by 56 per cent from an estimated $64 billion (£38bn) in 2014 to hit $100 billion by 2018.

DFC forecasted that mobile game revenue will be one of the main drivers for the growth, soaring from $10 (£6bn) billion in 2013 to $29 billion (£17bn) in 2018, comprising 30 per cent of total game software revenue.

“The market is growing on all fronts,” said Cole.

“The new console systems are doing well but much of the predicted growth is on mobile platforms and in BRIC countries.

“What we are seeing is a game market in 2018 that is likely to be split fairly evenly between console, PC and mobile platforms.”

DFC analyst Jeremy Miller added: “The challenge with mobile games is that even as it grows it remains very fragmented and overcrowded.

“Companies need to be very cautious about their platform strategy and understand which markets and platforms are suitable for their particular product.”

In the console market, DFC raised its forecast for the PS4 and Wii U and lowered its forecast for the Xbox One, stating its expectation that the PS4 will lead the market for the next few years.

Cole explained that the main challenge facing the consoles was the difficulty of expanding beyond the core market.

“The Xbox One should carve out a solid share among dedicated action gamers, but due to some questionable business decisions Microsoft’s broader entertainment strategy is in disarray, despite the release of the new $399 Kinect-less SKU,” he said.

“The main question is whether Sony can continue to build on initial PS4 sales to build an installed base similar to what they had with the PS2.”

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