The gaming industry expected to grow 7.5% annually until 2025, PwC reveals
Gaming was one of the bright spots for the entertainment and media sector during the onset of the pandemic, according to PwC’s latest Australian Entertainment and Media Outlook.
Total interactive gaming and esports revenues, which rose by 7.2% in 2020 to $3.41 billion, are expected to grow at a 7.5% CAGR based on the midpoint forecast scenario through to 2025.
Gaming was one of the bright spots for the entertainment and media sector during the pandemic, PwC reveals
PwC’s report cited that “traditional gaming was boosted by the launch of next-generation consoles from Microsoft and Sony in late 2020, notwithstanding supply issues of the consoles themselves”.
More broadly, the report revealed that the most of the growth going forward will be in digital. Facebook Gaming and Amazon’s Twitch have all recently been active in acquiring premium games-related video content, including media rights to esports competitions and exclusivity deals with prominent games streamers.
Google plans to integrate its cloud-gaming unit Stadia with YouTube, which will make games seamlessly playable by viewers of game-related content and live streams, according to the report.
While mobility of content has been a feature of the entertainment and media landscape for some time, the increasing sophistication of technology – specifically 5G – means that the technology-enabled quality of the viewing, listening, reading or gaming experience is able to meet the higher expectations and demands of contemporary consumers.
This technology expectation is also met with an experiential one. Not only do consumers expect the technology to work wherever they are, but they also want the experience to meet with their specific requirements and personalised preferences based on their prior interactions.
“People do not want to be tied to a traditional method of distribution, but rather want to be able to access what they want, from wherever they are, on any device they choose,” stated the report.
The delivery of high definition content, whether it is on a phone, or a HD 8K LED television, is expected to be delivered with zero lag and glitch-free – whether people are on the bus or in their lounge room.
The report continued: “The lounge room – once the domain of linear television and appointment viewing – now offers consumers the additional options of SVOD, BVOD, Premium Video on Demand (PVOD) and gaming (to name a few), largely thanks to the growth in connected televisions and a much simpler user interface.”
PwC’s report added that the challenge for the advertiser is to meet the consumers where they are. If, for example, companies want to meet younger consumers where they are already spending their time, that may mean including a gaming strategy in their approach.
In-game micro-transactions continue to grow, and now account for almost a third of the total games and esports revenue in Australia. This is expected to continue on a growth trajectory over the forecast period and will be a major contributor to growth, with a CAGR of 12.3% to 2025 based on the midpoint forecast scenario.
