$300 Billion of Video Gaming Revenue, by Segment (2017-2026F)
$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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