China Set to Rake in Most Video Game Revenue This Year
Even though a Pac-Man cocktail table for sale piques the interest of many consumers, it’s mobile games that are going to take the majority share of video game profits in 2016, with Chinese consumers spending the most.
China Beats Out the Competition
According to new data released in the Global Games Market Report by Newzoo, the industry will see an annual revenue of $99.6 billion USD – that’s 8.5 percent more than in 2015. Of that amount, the largest share will come from China, with Chinese consumers expected to spend $24.4 billion USD compared to the United States’ $23.5 billion USD.
Part of this advancement in video game sales in China appears to be the ever-growing popularity of mobile gaming. While the mobile gaming market in China accrued a seemingly impressive $7.1 billion USD in 2015, it’s expected to increase by 41 percent by the end of 2016, with totals reaching $10 billion USD.
Newzoo’s report was not the only one that highlighted this advancement for Chinese mobile game sales. According to a report released by the Mobile Game Forum Asia, there are 564.5 million people over the age of 18 who have access to a smartphone or tablet, and 75 percent of those users actively play mobile games.
What’s Happening to the Console?
If the reports are true, 2016 will be the first year that mobile game sales eclipse console game sales. This prediction comes amid interesting news from Microsoft. On April 20, Microsoft announced it will stop production of the Xbox 360, first released 11 years ago. Microsoft will still be producing the Xbox One, but their more recent console did not sell as well as the 360. The Xbox 360 sold 19 million units in three years, while the Xbox One only sold 10 million units in approximately the same time frame. Nintendo is dealing with the same issue, with the Wii U being their worst-selling console ever.
With mobile gaming largely taking center stage, developers have a new challenge on their hands: drawing the average gamer back to the console. But now that virtual reality has the potential to become a major player, the industry could shift once again in the coming years.