Video Games

video gamesThe number of active gamers worldwide exceeds 2.3 billion, 46% of whom buy video games. Video game enthusiasts not only play video games, they read about them and discuss them in online communities. They also watch esports and their favorite players on video game streaming services.

Video games have come a long way since Atari’s Pong debuted in arcades in 1972. Graphics have improved greatly, from 8-bit in the 1970s, 3D in the 1990s and high-definition in the early 2000s to augmented and virtual reality currently. Video game enthusiasts have a wide range of genres to choose from: action, adventure, role-playing, strategy, simulation, sports, logic, and trivia, to name a few. Gamers can play against the computer, with a few friends, or as part of a team in massively multiplayer online games.

Worldwide, mobile games are expected to generate 51% of video game sales in 2018, console games 25% and PC games 24%. Smartphone game revenue is projected to reach $56.4 billion in 2018, more than 80% of total mobile gaming revenue.

Today’s market size shows the projected global sales of video games in 2018 and 2021. Overall, sales increased by 13.3% from 2017 to 2018. Smartphone game sales grew the most, 29.0%, followed by tablet games (+13.1%) and boxed/downloaded PC games (+4.5%). Console game sales rose 4.1% over this time period. Browser PC game sales, however, dropped 13.9%. Which games are most popular? God of War for the PS4 topped sales with nearly 4.6 million units sold in 2018, followed by Monster Hunter: World (PS4, 4.3 million) and Far Cry 5 (PS4, 3.5 million).

Geographic reference: World
Year: 2018 and 2021
Market size: $137.9 billion and $180.1 billion respectively
Sources: Leo Sun, “The World’s Top 5 Video Game Markets,” Lansing State Journal, August 25, 2018, page 3B; Tom Wijman, “Newzoo’s 2018 Report: Insights Into The $137.9 Billion Global Games Market,” June 20, 2018 available online here; “Video Game History,” History, 2017 available online here; “Global Yearly Chart,” VGChartz available online here.
Original source: Newzoo.
Image source: Pexels, “candy-crush-device-electronics-game-1869655,” Pixabay, November 29, 2016 available online here. Use of image does not constitute endorsement.

Digital Video Marketing

Digital video marketing word cloudAccording to Jim Louderback, CEO of VidCon, an annual online video conference held in Southern California, “[t]he younger you are the more likely you are to want to consume information in video form. If you’re under the age of 35, video is the way you want to be communicated with, it’s the way you want to learn and understand.” Knowing this, 56% of businesses surveyed by mobile video platform Magisto said they produce video content at least once a week, with 26% producing content daily. However, among companies that spend more than 25% of their marketing budget on video, those companies whose marketing departments are run by Millennials are less likely than those run by Generation Xers to spend money on business videos and less likely to create business video content on a daily basis.

Today’s market size shows the estimated amount businesses in the United States spent on digital video marketing in 2017. This figure includes the cost of video capturing, creation, hosting, distribution, analytics, and staffing. By contrast, businesses were expected to spend $83 billion on digital advertising and $71 billion on television commercials in 2017.

Geographic reference: United States
Year: 2017
Market size: $135 billion (estimated)
Sources: Chaykowski, Kathleen, “Digital Video Marketing is a $135 Billion Industry in the U.S. Alone, Study Finds,” Forbes, October 17, 2017 available online here; Video’s Payday: Part I: The Modern Marketing Dilemma and The State of Business Video, Magisto, available online here.
Original source: Magisto
Image source: Word cloud created in-house using Wordle™ available online here.


E-sports tournamentE-sports are tournaments where teams of video game players compete against each other for prize money. Traditionally, fans have watched in person and online on streaming services such as Twitch and BAMTech. As e-sports have become more mainstream, fans are able to watch the tournaments on television channels such as TBS and ESPN also. An estimated 258 million people watched e-sports in 2017, an increase of 20% from 2016, according to SuperData.

Today’s market size shows total revenues earned by e-sports in 2016. Most of the revenues were earned from advertising, ticket sales, and merchandise. According to the source, e-sports is a valuable marketing tool for selling video games. Worldwide video game sales—mobile, computer, and console—in 2016 totaled $83 billion according to SuperData.

Geographic reference: World
Year: 2016
Market size: $900 million
Source: “E-sports: Play Time,” The Economist, August 19-25, 2017, page 56; “eSports Market Report,” SuperData Research available online here.
Original source: SuperData
Image source: Yo_Tobimoto 2017_05_20_2GGC Greninja Saga_ (46 of 50) via photopin (license)

Video Games

According to the Entertainment Software Association, 72 percent of households in the United States own a video game machine. Initially video games were targeted to males, but by 2010 48 percent of gamers were female. And, although nearly all children aged 12-17 play video or computer games, the average gamer is 37 years old. Nearly one-third of gamers are older than 50.

Data show the amount consumers spend on video games in the United States. To provide some perspective, in 2010, worldwide motion picture ticket sales totaled $31.0 billion. Figures for 2012 are projected.

Geographic reference: United States
Year: 2010 and 2012
Market Size: $25.1 billion and $70.0 billion
Source: Thomas L. McDonald, “Get in the Game,” The Catholic Times, October 1-7, 2011, page 6
Original Source: Entertainment Software Association
Posted on October 20, 2011

Video Games

The world of gaming is big and it is growing. Today’s market size is the number of video games sold annually. Leading video game publishers include Nintendo with around 19% of the market in 2010, Electronic Arts (12%), Activision (9.6%) and Ubisoft (7%).

Geographic reference: World
Year: 2000, 2005 and 2010
Market size: In millions of units: 43.7, 128.7 and 651.9 respectively
Source: “Worldwide Yearly Chart,” a report on the industry by VGChartz made available online here.
Original source: VGChartz Network

Home Movie Rentals

The ways in which people obtain the movies they wish to watch at home have multiplied and changed over time, altering this market greatly. In 2005 the video rental store still had a 74% share of this market but this share has declined in favor of companies that offer a mail-in form of service, like Netflix, as well as kiosk style retail outlets. By way of punctuating this transition, in late summer 2010, Blockbuster, one of the largest video rental store chains still operating, filed for bankruptcy.

The market size listed here includes the following categories of video rental outlet: Subscriptions, Kiosks, Traditional Video-on-Demand (VOD), Video Stores, and Internet VOD.

Geographic reference: United States
Year: 2010
Market size: $7.8 billion
Source: USA TODAY, September 23, 2010, page 2B.
Original source: Screen Digest

Motion Picture and Video Industries

This industry comprises the whole large group of companies engaged primarily in the production and/or distribution of motion pictures, videos, television programs, or commercials; in the exhibition of motion pictures; or in the provision of postproduction and related services.

Geographic reference: United States
Year: 2002 and 2007
Market size: $62 billion and $80 billion respectively
Source: 2002 Economic Census and 2007 Economic Census, October 30, 2009. The 2007 data on the Information sector is available online here.
Original source: U.S. Bureau of the Census