Digital Games Revenue Growth Rate

These Digital Games Revenue Growth Rates Will Surprise You

The buzz over mobile and social has subsided, and this year’s growth in digital games revenue will come from the game industry’s more traditional platforms – consoles and PCs.

Genres that were once leading the buzz in games, such as MMOs, are stalling out. Revenue from pay-to-play MMOs is expected to shrink this year by 14%, while free-to-play MMOs will only grow 2% this year.

Digital Games Revenue Growth Rate
Forecasts for 2014 indicate the biggest growth factors for digital games revenue will come from console and PC platforms.

What’s old is good again in the digital age, with traditional PC game revenue up 20%, and console game revenue up 28%. High growth rates on consoles are due to the digital-download friendliness of the latest consoles, PlayStation 4 and Xbox One. The newest platforms are bundled with large hard drives and UI-optimized online stores. PCs continue to perform well due to the accessibility of the Steam platform.

Digital Games Revenue
Digital games revenue for console titles are slowly catching up to other established digital games categories.

It’s worth noting that social games remain a growing segment – expected to grow 7% this year. The social games sector has its challenges, most notably Zynga’s struggles, but the sector continues to grow, partly in thanks to the user-acquisition benefits of social networks. While ads for traditional mobile installs can cost as much as $3.71, social games can acquire new customers for free through a friend’s recommendation on a social network.  The viral growth mechanisms of social games support a less expensive user acquisition strategy.

Source: SuperData

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Video game data and analysis from a consultant