The Strategist

Analysts: Revenue of global video game industry surpasses cinema and sports

12/24/2020 - 06:35

The COVID-19 coronavirus pandemic has spurred growth in the video games industry, allowing it to generate more revenue than the film and sports industries combined.

Revenues in the global video games industry are expected to jump 20 percent year-over-year to $179.7 billion in 2020, according to IDC. At the same time, revenues for the global film industry reached $100bn for the first time in 2019, according to the Motion Picture Association, while PwC projects the global sports industry to earn more than $75bn by the end of 2020.

Both have been hit by the effects of the pandemic, while the video game industry is expected to grow in double digits this year. Experts predict continued strong growth in 2021 on the back of the release of next-generation gaming consoles and new games from Sony Corp. and Microsoft Corp.

All three of the biggest publicly traded video game publishers in the U.S. have outperformed the S&P 500 in 2020, with Activision Blizzard going up by 49% and Electronic Arts Inc. - by 30%, Take-Two Interactive Software Inc. - by 64%, while the index is up by 14%.

According to a survey released last summer, 79% of respondents said they had played video games in the past six months, or since the coronavirus pandemic began in March, with an average of 14 hours of gaming per week, up from 12 a year earlier.