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Global Gaming Reenergized - Augmented Reality, Location Based Gaming and Connected Toys Fuel Mobile Gaming Finds Frost & Sullivan - Decline in gaming console shipments will be offset by growing demand for Toy-to-Life and smartphone supported games - Frost.com
Global Gaming Reenergized - Augmented Reality, Location Based Gaming and Connected Toys Fuel Mobile Gaming Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Singapore, Singapore, 2016/07/28 - Decline in gaming console shipments will be offset by growing demand for Toy-to-Life and smartphone supported games - Frost.com.

   
 
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The mobile gaming market seems to have reached an impasse with increasing saturation, heavy consolidation, and steadily declining unit shipments. In recent years, strong game development companies such as Supercell and Mixi have also come to dominate the industry. There are also increasing concerns over market saturation in Japan, the US, Europe and Korea and the lack of payment options in emerging markets. However, in terms of revenues, 2015 was another strong year for the industry with hardware and software revenues reaching US$52 billion globally.

New analysis from Frost & Sullivan, Global Gaming Market Tracker Mobile & Console Gaming Market Forecaster analyzes key gaming markets such as the US, Japan, Korea, China and the UK in terms of hardware and software and offers forecasts until 2020.

Some key findings:

Mobile games will show significant growth by 2020
Marc Einstein, Research Director, Japan, Frost & Sullivan is bullish towards the market.

“There will still be significant growth in the mobile gaming market. The recent release of Pokemon Go has provided a proof of concept for augmented reality and location based gaming. The partnership with the game and McDonald’s in Japan also opens the door for new revenue streams for gaming companies. There are also many new interesting areas such as connected toys which will further bridge the gap between digital and physical products so we expect continued growth in the gaming market,” noted Einstein.

Einstein also expects that it will be a matter of time before disruptive payment channels for digital services become popular in emerging markets.

“Countries like Indonesia and Brazil are showing increasing interest in Bitcoin and this will eventually lead to further growth in mobile gaming revenues,” he added.

Revenue from Console Sales will continue to decline
On the other hand, the market for console hardware and software is expected to slowly decline from US$23 billion in 2015 to US$16 billion in 2020, at a negative Compound Annual Growth Rate of 6.6%. Among the key markets, USA, Japan and UK still accounted for more than 70% of global revenue in the segment in 2015.

Cris Duy Tran, Consulting Analyst, Digital Transformation, Asia Pacific, Frost & Sullivan noted that the massive uptake of mobile games has limited prospects for the console market in emerging markets and impacted sales in developed markets.

“Moving forward, console makers will need to continue to explore new areas to drive business in such as augmented and virtual reality,” he added.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on “the next big thing" | Register: Gain access to visionary innovation.

 
 
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Global Gaming Reenergized - Augmented Reality, Location Based Gaming and Connected Toys Fuel Mobile Gaming Finds Frost & Sullivan

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Frost & Sullivan | Global Gaming Market
Contact: Melissa Tan - Frost.com 
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