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August 15, 2023
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Rida Khan
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- Zack Aboulazm
The following content is sponsored by Roundhill Investments
$300 Billion of Video Gaming Revenue, by Segment (2017-2026F)
Did you know that video gaming generates more revenue than movies and music combined? In fact, it’s projected to surpass $300 billion (excluding esports) by 2026 according to PwC.
This infographic, sponsored by Roundhill Investments, takes a closer look at gaming revenue and how it is expected to evolve.
Notable Sources of Growth
Mobile games, categorized under social and casual gaming, are spearheading industry growth.
- Social gaming: Playing interactive video games via social media or mobile apps.
- Casual gaming: Playing easy-to-learn video games for short, simple sessions.
Both options are user-friendly, with low barriers to entry, and are expected to command a whopping $242.7 billion of the $321.1 billion total revenue by 2026.
| Year | Mobile games -social/casual | PC games | Console games | Integrated video games advertising | Total |
|---|---|---|---|---|---|
| 2017 | $67.7B | $25.5B | $23.8B | $3.4B | $120.4B |
| 2018 | $83.2B | $27.3B | $25.0B | $3.7B | $139.2B |
| 2019 | $103.9B | $28.9B | $25.6B | $4.0B | $162.4B |
| 2020 | $132.9B | $31.3B | $28.6B | $4.1B | $196.9B |
| 2021 | $148.0B | $33.7B | $28.3B | $4.2B | $214.2B |
| 2022F | $167.0B | $35.2B | $29.2B | $4.3B | $235.7B |
| 2023F | $185.8B | $36.6B | $30.0B | $4.7B | $257.1B |
| 2024F | $204.7B | $38.6B | $30.6B | $4.5B | $278.4B |
| 2025F | $223.8B | $40.4B | $31.1B | $4.6B | $299.9B |
| 2026F | $242.7B | $42.2B | $31.5B | $4.7B | $321.1B |
Integrated advertisements bring in a significant chunk of money and may see a higher growth percentage compared to console games over the specified timeframe, according to the data.
The Industry’s Revenue Model
An impressive 85% of gaming revenue comes from free-to-play (F2P) games. These games are free upfront and generate revenue through ads, in-game transactions, and optional purchases.
For example, Dungeon Fighter Online, a massively popular F2P online game, ranks among the highest-grossing video games ever. In fact, most of the top revenue-generating games, including Fortnite, Pokemon Go, and PUBG, are F2P.
Take your Portfolio to the Next Level
Fueled by technological advancements and amplified engagement during the COVID-19 pandemic, video gaming’s popularity is surpassing predictions.
But you don’t need to be a gamer to capitalize on this monumental growth.
If you’re looking to invest in video games, Roundhill’s video games ETF, $NERD, offers exposure to the video game sector by providing investment results that closely correspond to the performance of the Nasdaq CTA Global Video Games Software Index.
Invest in the video game ETF: $NERD, now.
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Related Topics: #business #casual gaming #console #console gaming #dungeon fighter #F2P games #fortnite #gaming #marketing #online advertisment #PC #PC games #platform #ps4 #PUBG #revenue #roblox #Roundhill #Roundhill Investments #segment #smartphone #social gaming #technology #video #videogames
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