Digi-Capital forecasts that Games Software Revenue will grow from $88 billion in 2015 to $110 billion by 2018 at 8% annual growth. In a single digit growth market, games leaders with hit IPs, user scale and cashflow are spending more on marketing and development to drive shareholder value. This dynamic has eaten into games industry margins, and made it more expensive for newcomers to break through.
Mobile Games will generate more revenue than Online Games in 2015, as well as more revenue than Console Software. Where Mobile Games will take $3 of every $10 spent by gamers on software in 2015, that figure will go up to $4 out of every $10 by 2018. Mobile Games revenue will grow from $29 billion in 2015 to $45 billion by 2018 at 15% annual growth. Asia has dominated mobile games revenue since 2013, compared to both North America and Europe, and Digi-Capital forecasts Asia to take over 50% of all mobile games revenue in 2018. Stable top grossing mobile games charts look set to remain the norm. This is great for games leaders and their shareholders, but puts the big squeeze on mid-tier players and makes breaking through more challenging for Indies.