Video Games Subscription Revenue to Exceed $11 billion by 2025, but Cloud Growth Will Be Slow

Must Read

- Advertisement -

A new report from Juniper Research has found that video games service platforms, such as EA Play and PlayStation Now, will grow to an $11 billion sector by 2025, up from an estimated $6.6 billion this year. These platforms represent a strong new revenue stream for an industry experiencing a revenue decline of around 3% per year over the next five years.

 

Video Games Subscription Revenue to Exceed $11 billion by 2025, but Cloud Growth Will Be Slow

However, Juniper Research expects cloud gaming subscriptions to comprise of only 25% of this revenue over the forecast period, as more general service platforms have fewer limits on their adoption.
Subscription Services a Success Story

Juniper Research’s new report, Video Games: Industry Trends, Monetisation Strategies & Market Size 2020-2025, shows that subscriptions accessed through PCs will be the biggest segment; accounting for over $5 billion in revenue in 2025. This will be dominated by games publishers, as they can make the most popular titles exclusive to their services, and supplement them with studio acquisitions. While tie-ups between services do exist, such as that recently announced by EA Play and Xbox Game Pass, these will become less common as the space grows.

 

- Advertisement -

Despite a booming mobile games market, mobile games subscriptions will be niche, with less than 1% of mobile gamers worldwide using a games subscription service on their smartphone.

Video Games Subscription Revenue to Exceed $11 billion by 2025, but Cloud Growth Will Be Slow
Video Games Subscription Revenue to Exceed $11 billion by 2025, but Cloud Growth Will Be Slow – www.brandspurng.com

Cloud Technology on Old Rails

Meanwhile, cloud gaming is not being held back by demand for the services, which already have millions of users, but by a lack of awareness in many places. Slow data speeds also limit its reach in many markets, as data is needed for playability. This will limit the technology’s adoption to around 1% of active gamers globally.

 

- Advertisement -

‘Cloud gaming is a highly concentrated market, with over 60% of anticipated subscriptions to be in the US and China,’ remarked research co-author James Moar. ‘Targeting specific types of players in these markets will bring sustainable success, but awareness of cloud gaming outside of particular gamer segments will keep the market niche.’

 

Read Also:  Hyundai Motor Group Develops Air-Conditioning Technologies to Maintain Clean Air in Vehicles

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.

HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR

HEINEKEN Spain unveils newest ingredient to brew with 100% green electricity

- Advertisement -

The sun is the new secret ingredient of Cruzcampo, Amstel and Heineken® beers.

General Electric Completes Gas Turbine Project in Nigeria

General Electric Company (GE) recently announced that it has completed the gas turbine rehabilitation project at Niger Delta Power Holding Company’s (“NDPHC”) three power plants located in Nigeria. Financial terms of the deal were kept under wraps.

Boeing and Ethiopian Airlines Partner on their 40th Humanitarian Delivery Flight

Boeing [NYSE: BA] and Ethiopian Airlines recently launched their 40th humanitarian delivery flight when the airline’s new 787-9 Dreamliner departed Everett, Wash., carrying more than 20,000 pounds of humanitarian supplies. The shipment, including supplies for health care and family needs, will be distributed to hospitals, clinics and charities in the Addis Ababa region.

Read Also:  Nokia posts operating loss on weak Q1 2019, still sees better H2

Child Safety with a Star: Mercedes-Benz child car seats for all age categories combine safety with comfort and design

Maximum safety in all respects is the top priority for all Mercedes-Benz vehicles. For many decades, countless technical innovations and features have made them the safest cars in the world.

Hyundai Drivers “Unlock Better” With All-New 2021 Elantra

Hyundai is letting drivers “Unlock Better” in the national marketing campaign for the all-new, redesigned 2021 Elantra. The campaign provides early access and unique experiences through premium partnerships and innovative car shopping technologies.

British Airways increases October schedule to more short and long haul destinations

British Airways is increasing the number of destinations it serves with a larger timetable of flights for its customers.

- Advertisement -
spot_imgspot_img

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

NRC Releases Timetable For Lagos-Ibadan Railway Service-Brand Spur Nigeria

NRC Releases Timetable For Lagos-Ibadan Railway Service

The Nigerian Railway Corporation (NRC) has released the timetable for the operation of the standard gauge railway service from Lagos to Ibadan. Brand Spur Nigeria...
- Advertisement -
spot_imgspot_img

Latest News

NRC Releases Timetable For Lagos-Ibadan Railway Service

The Nigerian Railway Corporation (NRC) has released the timetable for the operation of the standard gauge railway service from...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -spot_imgspot_img