Video games software/hardware combined could be in the $165 billion (€135bn) to $170 billion range this year (if mobile outperforms again), and reach between $230 billion and $235 billion by 2022 if strong performance continues. That might make games software/hardware bigger in 5 years than 150 countries’ individual GDPs today (somewhere between Vietnam and Finland). Games software alone could drive around three-quarters of total market revenue in 5 years, with hardware taking the rest.
Digi-Capital’s new Games Report Q1 2018 details how the three big sectors of mobile games software, PC games hardware, and PC games (online) could take just under three-quarters of total games market revenue by 2022. If mobile games software continues its outperformance of recent years, it could deliver in the $55 billion to $60 billion range this year, and grow to $90 billion to $95 billion by 2022. PC games hardware sales could hit $30 billion to $35 billion in 2018, growing steadily to between $40 billion and $45 billion in the same timeframe. Lastly PC games (online) could drive $20 billion to $25 billion this year, also growing steadily to $25 billion to $30 billion by 2022.
All of this scale and growth has led to two consecutive years of games investment growth, with VCs from Sand Hill Road to China pouring a record well over $2 billion into games startups in 2017. The biggest investments were in games core tech, mobile games and AR/VR games sectors. eSports also generated a huge amount of interest, but not the same level of investment.