j Contents Foreword

Table of Contents

00. Foreword 3

01 . Met hod olog y & Term inolog y 5

02. The Glob a l G a m es Ma rket 12

03. Key Glob a l Trend s 19

2020 04. Ra nking s 25

Global Games 05. S p ec ia l Foc us Top ic s 27

Market Report
06. Ab out Newzoo 30
Cover © SHUTTERSTOCK

Key Trends | Market Sizing & Forecasts

Special Focus Topics | Rankings

© 2020 Newzoo 2 Global Games Market Report 2020

j Contents Foreword j Contents Foreword

Foreword At the same time, game companies are investigating new ways
to deliver content to consumers. Subscription services offer a new
N ewzoo ’s 2 02 0 Gl o ba l G a me s M a rke t Re p o rt level of value and have the potential to redefine the relationship
between developers, publishers, and players. Similarly, cloud
gaming services are on track to attract even more players by
With great pride, we present the 2020 Global Games Market Report. This is another landmark lowering the upfront cost of hardware, removing one of the
Tom Wijman
year for the industry, which continues to be shaped by global events on a scale never-before- highest barriers to entry to PC and console gaming. Going forward, Sr. Market Analyst
tom@newzoo.com
seen in our lifetime. Games are playing a pivotal function in society as a pillar of entertainment, we see leading companies willingly sacrifice short-term revenues
social connection, and relief, improving the quality of life for millions during the COVID-19 for long-term success. By prioritizing user engagement above all,
pandemic. Consumers are spending more time gaming than ever, and the games market has companies are pushing us further toward a platform-agnostic
seen unprecedented levels of engagement in the first half of 2020. future. It doesn’t matter which device people play on—as long as
Meanwhile, the second half of the year will see a climactic event nearly a decade in the they are accessing these companies’ ecosystems.
making: both Sony and Microsoft will launch the next generation of home consoles, ushering To that purpose, we have further improved our game revenue
in an exciting new era for the games market. breakdown. We now split revenues per platform between full
The lockdown measures across the world have accelerated—and even catalyzed—change games (boxed and digital), in-game revenues, and subscription
in the games market. Ten years ago, younger generations were leaving behind traditional revenues on console. We will continue to expand this breakdown in
media for social media. Today, they are leaving behind social media for the more interactive the coming months to account for the ever-evolving games market.
experiences that gaming offers. Playing games has always been an inherently social
experience, and this year, the World Health Organization officially promoted video games
as a recommended social activity during the pandemic. At its core, gaming is a universal
language connecting people through a shared passion, common goals, and unifying
experiences. Game worlds are generally more immersive than social apps. Through ever-
improving connectivity technology, games are becoming fully fledged, fully functional
social networks. The largest social networks like Facebook and Bytedance’s TikTok
recognize the opportunity (and threat), and continue to increase investment in games to
unlock and explore their potential.
It doesn’t stop there: game worlds are experimenting with experiences that go beyond the
game itself. Fortnite famously hosted one concert last year, and in the first six months of
2020 alone, we have seen global entertainers host concerts in Fortnite in front of millions,
a late-night talk show host an episode via Animal Crossing, people celebrating weddings
and graduations in game worlds, and more. Thanks to gaming, the once-impossible concept
of a metaverse—a virtual space that is persistently online and active, and unlimited in
scope with its own economy—is edging closer to reality. 
Mobile gaming continues to break barriers, expanding the reach of gaming around the
world. By the end of this year alone, more than 92 million new players from emerging markets
will have entered the ecosystem, most of them via mobile. One of the key contributing factors
is the ongoing growth of hypercasual mobile games. The accessibility of these titles—through
simple gameplay, little-to-no waiting time, and ad-based monetization—allows anyone to play
and enjoy. Chinese game companies, in particular, are leading the change for mobile, finding
new revenues and success in the wake of 2018’s nine-month-long licensing freeze.

© 2020 Newzoo 3 Global Games Market Report 2020 © 2020 Newzoo 4 Global Games Market Report 2020
j Contents Foreword j Contents Methodology & Terminology

Methodology
Si z i n g th e Ma rke t Wi th A Va ri e ty of Data

Newzoo aims to provide clients and market stakeholders with the best possible assessment of

1.
the size of the overall games market, broken down into segments and regions. By developing
many data points, we ensure that our numbers make sense on a segment, regional, and
individual country/market level. Below, we describe our approach in more detail to explain
what underpins our forecasts, facilitating comparisons with other data sources.

At the highest level, Newzoo focuses on three key metrics for every market: players, payers,

Methodology
and revenues. We define a market as a country or geographic region in combination with one
or more game segment(s).
The data on players and payers is mainly based on our own primary consumer research,

&Terminology
which continues to form the basis of our detailed understanding of consumers and games. In
our primary consumer research, conducted from February and March 2020, more than 62,500
invite-only respondents across 30 key countries/markets were interviewed. The 30 countries/
markets together represent more than 90% of global game revenues. The respondents are
between the ages of 10 and 65 for all markets except for Turkey, Saudi Arabia, Indonesia, India,
Thailand, Singapore, Vietnam, Philippines, Malaysia, Taiwan, and China, for which the focus
is 10 to 50. Respondents are selected carefully to represent the online population in developed
countries and the urban population of major cities in Turkey, Saudi Arabia, Southeast Asia,
and India. In China, we focus on the population of Tier 1 and Tier 2 cities.
The player and payer ratios resulting from our consumer research are projected against
the online population, using UN population and ITU internet penetration metrics. The logic
behind the model is that the online population is an important driver of the number of
potential gamers and an indicator of how much more structural growth a country can expect
in its potential gamer population.
The differences between the player and payer numbers in the Global Games Market Report
and our Consumer Insights stem from the use of age boundaries and the use of the core city
approach. In the Global Games Market Report, the total population is considered, while our
Consumer Insights use the population between the ages of 10 and 50 or 65 to best represent
the online urban population in most countries.
The revenue data comes from our predictive games market model, which uses a top-down
approach to market sizing. We incorporate macroeconomic and census data from the IMF and
UN, such as household income and GDP per capita, transactional and app store revenue data
from our data partner Priori, our primary consumer research, other partner data, detailed
financial information reported by more than 100 public companies, and third-party research.
We also receive valuable input from clients, often leading international game companies.

© 2020 Newzoo 5 Global Games Market Report 2020 © 2020 Newzoo 6 Global Games Market Report 2020
j Contents Methodology & Terminology j Contents Methodology & Terminology

Market size estimates and growth forecasts for individual segments, countries, and in Global G ames Market Report Methodology
aggregate for the total industry are validated against our analysis of various contextual metrics.
For instance, our market model calculates the average annual spend per paying gamer, which
is then compared with historic numbers, other regions, household income, and GDP per capita.
Our historical revenues and growth rates reflect the year-end US$ exchange rate. Our Global Financial Company Analysis
projected growth rates assume steady exchange rates going forward, but we take into Game revenues of public and non-public companies
consideration historical growth rates in local currency rather than US$, as this gives a better
picture of underlying growth.
We define revenues as the amount the industry generates in consumer spending on games:
physical and digital full-game copies, in-game spending, and subscription services like Population & Economic Census Data
PlayStation Plus and Xbox Game Pass. Mobile revenues include paid downloads and in-game Projecting organic growth on a local and global scale
Players(#)

spending on all stores, including third-party stores, and from direct downloads.

Share of Paying Players (%)

Our revenue numbers exclude taxes, consumer-to-consumer second-hand trade, advertising
revenues earned in and around games, (peripheral) hardware, business-to-business services, and
the traditionally regulated online gambling and betting industry (e.g., BWIN and William Hill). Primary Consumer Research in Key Countries
In terms of countries and regions, we define the market size as the amount companies Understanding playing and spending behavior
Global
generate from consumers in that specific territory, as opposed to the amount companies
Games
based in a particular territory generate worldwide. Market
The broader conceptual framework supporting our forecasts consists of the expected Model
growth of the online population plus the expected development of the Key Market Indicators Partner Data Payers (#)

per region, as illustrated below. Actual download, revenue, and play time data

Avg. Spend/Paying Player ($)

Overall, our forecasts are always the outcome of an iterative process, reviewing the
implications of our assumptions on a very granular level. During this process, we rely on
quantifiable metrics, such as historical growth rates, and include hard-to-quantify metrics,
such as (gaming) culture, spending behavior, and other societal factors. Local Data Validation
With commercial companies in specific countries

Money (#)

Third-Party Research
Reported on a local and global scale

© 2020 Newzoo 7 Global Games Market Report 2020 © 2020 Newzoo 8 Global Games Market Report 2020
j Contents Methodology & Terminology j Contents Methodology & Terminology

Terminology Game enthusiasts. All people who engage with gaming content through playing, viewing, and/
or owning.

Definit i o n o f M a i n Ter ms Game revenues. Consumer revenues generated by companies in the global games market,
excluding hardware sales, tax, business-to-business services, and online gambling and
Augmented reality. A technology that supplements real-life views of users with computer- betting revenues.
generated sensory input as images or sounds.
Games as a service. Also known as GaaS, games as a service provides game content or access to
Big spenders. Payers that spend an average of $25 per month on gaming content per platform games on a continuous revenue model, e.g., via a game subscription service or a season/battle pass.
on PC, mobile, or console.
Highly engaged players. Players that indicate they spend a minimum of 15 hours per week
Boxed full-game revenues. Revenues generated by the sales of games or game-related content playing on a PC, mobile, or console.
delivered on physical storage media (i.e., discs or cartridges). Also includes physical copies ordered
in online stores. In-game revenues. Revenues generated through the sales of in-game items, including expansion
or content packs, cosmetics/skins, power-ups, time savers, loot boxes, playable characters, content
Browser PC games. Games played on casual game websites or social networks. passes for a one-off fee (battle/season pass), in-game currencies, content passes for a recurring
fee, and reward passes.
Cloud gaming. Also referred to as gaming on demand, cloud gaming is the ability to play a
game on any device without owning the physical hardware required to process it or needing a Mobile phone games. Games played on tablets or smartphones.
local copy of the game itself.
Online population. All people within a country/market or region who have access to the
Compound annual growth rate (CAGR). The constant growth rate over a period of years. In Internet, via a computer or mobile device.
this report, all CAGRs are based on the years 2018-2023.
Payers. All people who have spent money to play games on a PC, console, a mobile device, or
Console games. Games played on a TV screen directly or through a console, such as Xbox, cloud gaming service in the past six months.
PlayStation, and Nintendo, or on handheld devices, such as a Nintendo DS or PS Vita.
Pay-to-play (P2P) games. Games paid for upfront or paid subscription-based games.
Digital full-game revenues. Revenues generated by the sales of games or game-related
content purchased directly from an online store and delivered through a digital download, e.g., Peripherals. Gaming-related hardware products that are used for gaming, such as gaming
the PlayStation Store, Xbox Store, Steam, and Tencent WeGame. mice, keyboards, headsets, controllers, or monitors.

Downloaded/boxed PC games. PC games downloaded from websites or services (i.e., Steam Players. All people who played (digital) games on a PC, console, a mobile device, or cloud gaming
or Epic Games Store) or purchased as a boxed product (CD/DVD), including client MMO and service in the past six months.
MOBA games.
Spend/payer. Annual average revenue generated per payer (Game revenues/Payers).
Esports. Competitive gaming at a professional level and in an organized format (a tournament
or league) with a specific goal (i.e., winning a champion title or prize money) and a clear Subscriptions revenue. Revenues generated by periodical fees paid for subscriptions to
distinction between players and teams that are competing against each other. gaming content. A service a user can access by paying for a pre-determined time period. In this
report, the term is used in the context of a game subscription service, which is a service that
Free-to-play (F2P) games. Games that are (legally) free to download and play, very often offering offers access to software content without providing the platform/hardware access that a cloud
in-game spending opportunities. gaming service provides.  

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j Contents Methodology & Terminology j Contents Foreword

Tablet games. Games played on an iPad or any other such tablet.

Virtual reality. The computer-generated simulation of a three-dimensional image or environment

that can be interacted with in a seemingly real or physical way by a person using special electronic
equipment, such as a headset with a screen inside or gloves fitted with sensors.

2.
N ewzoo ’s G a m er Per s on a s

Gamer Persona. A new way of segmenting game enthusiasts across their playing, viewing,
and owning behavior.

All-Round Enthusiast. Consumers who love playing games, watching gaming video content,

The Global
and owning gaming-dedicated hardware, but don’t quite reach the same levels as Ultimate
Gamers in terms of hours or dollars spent.

Games Market
Backseat Viewer. Consumers who watch plenty of gaming video content/esports on Twitch
and YouTube but hardly ever play games.

Conventional Player. Consumers who tend to prefer playing much more than viewing
gaming content, which may lead to lower engagement levels with the overall gaming
ecosystem (compared to All-Round Enthusiasts).

Hardware Enthusiast. Consumers who are archetypal technology aficionados. Frequent first-
adopters, they like to either build their own computers or try out new gadgets (e.g., VR headsets
or smartwatches).

Lapsed Gamer. Consumers who are currently a non-game enthusiast. They have played in the
past but are currently not engaging with gaming whatsoever. They can be reactivated; more
than a quarter of them intend to play games in the foreseeable future.

Popcorn Gamer. Consumers who play a little but enjoy watching gaming content far more.

The Subscriber. Consumers who enjoy high-quality game experiences, preferably free-to-play
or discounted titles, but only spend on hardware when necessary.

Time Filler. Consumers who play games, typically on mobile, to pass the time but never watch
video content of games. Nearly a third of all female game enthusiasts fall within this group.

Ultimate Gamer. Consumers who love all things gaming—playing, owning, and viewing—and
dedicate much of their free time and disposable income to the pastime.

© 2020 Newzoo 11 Global Games Market Report 2020 © 2020 Newzoo 12 Global Games Market Report 2020
j Contents The Global Games Market j Contents The Global Games Market

The Global Games Market 2020 2020 Global G ames Market

Per Segment

An Over vi ew per Regi on a n d S e g me n t

Browser PC Games

$3.0Bn
The global games market will generate revenues of $159.3 billion in 2020, a +9.3% year-on- Dowloaded/Boxed
-13.4% YoY PC Games
year increase. The following section emphasizes how these revenues are divided per region
$33.9Bn
and segment Console Games
2%
$45.2Bn +6.7% YoY

21%
+6.8% YoY 28%
• A significant driver of this year’s growth is a heightened interest in gaming as a result of
2020 Total
COVID-19’s lockdown measures. The launch of the next-generation consoles toward the
$159.3Bn
end of the year is another key contributor. +9.3%
Tablet Games YoY
9%
• Mobile gaming (including both smartphone and tablet) remains the largest segment in 2020,
$13.7Bn
Smartphone Games
40%
with revenues of $77.2 billion and growing +13.3% year on year. The fastest-growing mobile +2.7% YoY $63.6Bn
gaming ecosystems are in emerging markets in the Asia-Pacific region and the Middle East
+15.8% YoY
and Africa. However, the Americas, Europe, and China will also enjoy strong growth.

• On PC, browser game revenues will continue to decrease as more gamers convert to mobile
gaming. In 2020, browser revenues will decline -13.4% year on year. Downloaded/boxed PC All game segments saw an increase in engagement and revenues, mostly due to COVID-19
games will generate $33.9 billion this year. lockdown measures, but mobile gaming saw the biggest increase (+13.3% year on year). As
mentioned, mobile will be the largest segment again by far ($77.2 billion). There are several
• Engagement and revenues on console are set to grow due to the lockdown measures, at least reasons mobile will enjoy more growth than both PC and console gaming: it has the lowest
in the short term. COVID-19 is also having adverse effects on console gaming, as physical barrier to entry, there is a spillover effect from the shutdown of PC cafés in specific markets,
distribution, massive cross-company collaboration, and certification are a significant part and mobile suffers the least impact from game development due to relatively low complexity
of console game development. These factors, along with the continued shift toward the compared to PC and console gaming. We expect engagement for mobile games to rise more
games-as-a-service business model, will drive 2020’s console game revenues to $45.2 rapidly than revenues. After all, it is infamously difficult to convert mobile players into payers.
billion, growing at +6.8% year on year. Overall, there will be 2.6 billion mobile gamers in 2020, of which just 38% will pay for games.
Console is 2020’s second-largest segment, growing +6.8% year on year to $45.2 billion. Growth
• The current console generation of Xbox One and PlayStation 4 is coming to an end this in the console market has slowed down significantly compared to the heights it reached in
year, meaning the installed base for these consoles is at its highest. The Nintendo Switch 2018. Anticipation for the next-gen consoles already led to lower-than-expected spending on
continues to be successful. console last year; this has spilled over to 2020.
In total, PC games will generate $36.9 billion in 2020, making it the third-largest segment.
• Markets in the Asia-Pacific region will generate $78.4 billion in 2020, up +9.3% year on year, Growth in downloaded/boxed PC games is partially offset by declining browser PC revenues,
accounting for almost half of all global game revenues. as browser gamers have mostly transitioned to mobile.

• In 2020, the Middle East and Africa region will grow the fastest year on year, up +14.5%
from 2019.

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2020 Global G ames Market 2020 Global Players

Per Region Per Region

Middle East & Africa

Middle East & Africa
377M
$5.4Bn
+8.8% YoY
Europe +14.5% YoY
$29.6Bn Europe 14%

+7.8% YoY
3% 386M
19% +3.6% YoY Asia-Pacific
14% 2020 Total
Latin America
Asia-Pacific 1,447M
$6.0Bn 2.7Bn
2020 Total $78.4Bn Latin America +5.3%
54%
4% $159.3Bn 49% YoY
+4.9% YoY
+10.3% YoY
+9.3% +9.9% YoY 266M 10%
YoY
+7.4% YoY
8%
North America 25% North America
$40.0Bn 210M
+8.5% YoY +2.6% YoY

This year, Asia-Pacific will generate game revenues of $78.4 billion, accounting for 49% of the
global games market. This represents a year-on-year growth of +9.9%. North America will
again be the second-largest region by game revenues, making up a quarter of 2020’s total global By the end of 2020, there will be a total of 2.7 billion players across the globe, an increase of
games market ($40.0 billion). This represents an +8.5% increase from last year, the second-slow- more than 135 million from the previous year. The Asia-Pacific region, with 1.4 billion gamers,
est year-on-year growth rate of any region. With its year-on-year growth of +7.8%, Europe is the will account for more than half (54%) of all players worldwide. East Asia (China in particular)
slowest-growing games market, producing revenues of $29.6 billion in 2020 and representing drives Asia-Pacific’s high player numbers. North America will have the fewest players of any
just under a fifth of the global games market. region this year, making up 8% of the entire market. Meanwhile, Europe and the Middle East
Both Europe and North America are very mature gaming markets, so their lower growth and Africa region will each account for 14% of players worldwide.
rates—relative to more emerging markets—makes sense. Meanwhile, Latin America will make
up 4% of the games market this year, increasing +10.3% year on year to $6.0 billion.

© 2020 Newzoo 15 Global Games Market Report 2020 © 2020 Newzoo 16 Global Games Market Report 2020