The video game industry revenue has shown us how lucrative it is. For instance, in 2022, the movie industry earned $26 billion, the music industry earned $26.2 billion, and the global gaming industry earned $184.4 billion. It’s clear that the gaming industry has crossed many other industries in the world in terms of revenue. But did that come instantly? No, there are several streams and historical context behind it. This article will tell you everything behind the sales of and revenue of the video game industry and how it flourished worldwide.
Video Game Industry Revenue: Historical Context
The video games industry is earning in billions now. But that’s not surprising to us. It has been decades that this industry is generating high figures. Let’s understand it with a historical context
1970s – 1980s
Since the 1970s, the video game industry has been showing great results in its revenue. Let’s take the game, Computer Space, as a solid example which was released in 1971. Then Pong was released. Magnavox Odyssey, the console game, was also hype at that time. The initial revenues of the gaming world were coming from arcade machines and hardware sales. Yet, it managed to earn $2 billion US dollars in quarters within 1982. But thanks to the technological advancement that opened newer revenue streams. Such as in-game purchases, advertising, subscriptions, and software sales.
1980s – 1990s
After 1982, arcade video gaming was ruling the era and this industry was earning $8 billion in quarters at that time. Then, in the early 1990s, 3D Revolution, and in the mid-1990s, 3D consoles were in demand. Within 1994, console game sales managed to earn $6 billion and arcade games generated $7 billion.
2000s – 2020s
From the 2000s, the video game industry was accelerating in profits. Thanks to the technological advancement of that time, like virtual reality, smartphones, etc. In the 2010s, mobile gaming was in trend. This sector generated $38 billion alone. Besides, the console market generated $6 billion and personal computing gaming generated $33 billion. In 2016, when eSports was the center of professional players, the gaming industry earned $500 million.
In 2020, during the pandemic, many thoughtful games came out. Such as Among Us, Fall Guys, and Animal Crossing: New Horizon. At that time, the video game market had 20% growth in their sales as everyone was in their house, free, in COVID. The revenue crossed $179 billion in 2020. Then, in 2022, the gaming industry earned more than $184.4 billion. Afterward, in 2023, the mobile gaming market generated more than $248 billion and the worldwide gaming market generated more than $347 billion.
World Trends In Video Game Industry Revenue
Many countries in the world are showing remarkable records of revenue that’s coming from the video game industry only. Some of the countries in the list are China, Japan, South Korea, Germany, Italy, France, United States, etc. Since it’s hard to elaborate each of them, we can mention some renowned options among them.
United States
The United States was the one that showed us Pong, the arcade game. In fact, the United States has the biggest presence in the video game industry. It gained $18.4 billion in 2017, and within 2022, it generated $230 billion from the video game industry only. Meanwhile, more than 150 million video gamers are from America.
United Kingdom
The United Kingdom has all top-notch video game franchises. Such as Grand Theft Auto, Tomb Raider, Colin McRae Dirt, etc. More than 38 million players are from the UK, and it has generated more than $5 billion US dollars from the video game industry.
China
All leading video game companies, like NetEase and Tencent, are located in China. In 2015, China surpassed the USA in the video game industry’s revenue with $22.2 billion. And now, in mid-2024, it has already generated $49.8 billion.
Germany
Germany has the largest expo of video games. In fact, it covers the largest number of video games in Europe. In 2017, Germany achieved $4.1 billion from this industry. And in 2024, it will have earned more than $10.6 billion.
Revenue Streams Of Video Gaming Industry
You must be thinking that people play video games after installing it and the developers get paid by that. Well, it’s not so simple. There are diverse ways that help the video game industry earn a large revenue.
Game Sales
Game sales is a crucial revenue stream both physically and digitally. Digital distribution platforms, like Xbox store, PlayStation store, Epic Games store, etc give the opportunity to sell directly. Also, it requires careful consideration to sell games. For example, you need to think about targeting the audience, targeting strategies, etc.
Advertising
One of the best ways that brands use to reach consumers is through advertising. Then, collaborating with brands for promotional events is also the essence of the video game industry.
Microtransactions
Microtransactions or small-scale transactions are in-game purchases. Here, players use virtual currency to buy cosmetics, skin, resources, weapons, etc. This is like a gambling experience that can give gamers a large amount of revenue.
Licensing and Merchandising
There can be artwork, storylines, characters, etc in a game. Selling these to a third party can give you a bulk amount, especially when your game is ruling the world. And when people use the licensed products of developers, they get paid additionally.
Frequently Asked Questions
Is video gaming a profitable industry?
No doubt, the video game industry is one of the most profitable industries in the world. Reports say that the video game industry has generated more revenue globally than the movie industry and music industry. We have a detailed article on how profitable the gaming industry is. Check it out if you want to learn more.
Which country has the largest gaming industry?
China has the largest gaming industry among all other countries in the world. Its biggest record of revenue from the gaming world is $112 billion.
What was the video game industry revenue in 2021?
In 2021, the video game industry generated $50.83 billion worldwide.
What was the video game industry revenue in 2023?
In 2023, the video game industry generated $184 billion worldwide.
