Market Environment

Newzoo market analysts1 estimate the volume of the global videogame market at 99.6 billion USD at the end of 2016, which represents an 8.6% increase compared to the 2015 year-end value (91.8 billion USD). The market is expected to continue growing at an annual rate of 6.6% over the next three years, reaching 118.6 billion USD in 2019.

According to Newzoo, in terms of territorial distribution, Asia and Pacific countries currently account for 46.6% of the total market (10.7% increase in 2016). The largest contribution to this figure is from China, with a market estimated at 24.4 billion USD. North America comes n second place, at 25.4 billion USD (4.1% y/y increase), of which 23.5 billion USD is attributable to the Unuted States. Europe, the Middle East and Africa jointly represent 24% of the market, with a volume of 23.5 billion USD (7.3% increase).

Figure 1 2016 estimated global videogame market share by territory (in %):


Source: Newzoo

Figure 2 World’s largest videogame markets in 2016 (USD billions)


Source: Newzoo

Poland comes 23rd in the ranking, with the domestic market valued at 431 million USD compared to 408 million USD in 2015. This represents 0.43% of the global market.

Figure 3 2016 global videogame market by platform


Source: Newzoo

Console games currently represent the plurality of the global market (29%). The share of games for mobile and tablet devices has increased significantly – from 12.7% four years ago to 37% in 2016 (36.9 billion USD). Analysts anticipate that this share will continue to increase, reaching 45% in 2019.2 The volume of the console and PC game market is also expected to steadily increase until 2019.

Dynamic growth is also evident in the global market for digital collective card games (CCG). According to a report published by Superdata analysts, the volume of this segment will reach 1.4 billion USD in 20173, with a particularly significant contribution from PC and smartphone games. In 2015 there were 37 million CCG players globally, mostly in Asia (10.9 million), North America (9.3 million) and Europe (8.7 million).

Further growth is also forecast for digital distribution of PC and console games. According to the PwC report titled Global entertainment and media outlook 2014-20194 consumers continue to migrate to digital distribution channels.

Global videogame industry – selected highlights

Major console manufacturers rolled out enhanced versions of their flagship consoles in 2016 – Xbox One S from Microsoft and PS4 Slim/PS4 Pro from Sony. The year was also marked by popularization of VR platforms, including Oculus Rift from Facebook, PlayStationVR from Sony, HTC Vive from HTC and Valve and DayDream View from Google.

2016 was also replete with significant capital market events, with the aggregate volume of transactions estimated at 30.3 billion USD – mosly mergers and takeovers (28.4 billion USD). This represents a 77% increase compared to 2014. Digi-Capital analysts estimate the volume of an average videogame market transaction at 300 million USD5.

Polish videogame industry

The domestic videogame industry continues to expand at a rapid pace – according to Newzoo the market volume is expected to grow by 5.4% annually until 2018. Altogether, 13.4 million Poles play videogames (the corresponding global figure is 1.7 billion, including 155 million Americans6).

Approximately 200 videogame developers currently operate in Poland, employing around 6 thousand people. Given the current market growth dynamics, the videogame industry is well on its way to becoming the flagship of the Polish creative market and a globally recognizable economic success story7.

1 2016 Global Games Market, Newzoo: https://newzoo.com/resources/
2 The global games market reaches $99.6 billion in 2016, mobile generating 37%, Newzoo: https://newzoo.com/insights/articles/global-games-market-reaches-99-6-billion-2016-mobile-generating-37/
3 Digital Collectible Card Games Report, Superdata: https://www.superdataresearch.com/market-data/digital-card-games/
4 Outlook insights: an analysis of the Global entertainment and media outlook 2015–2019, PwC: http://www.pwc.com/gx/en/global-entertainment-media-outlook/assets/2015/video-games-key-insights-3-shift-to-digital.pdf
5 Digi-Capital’s Games Report 2017: http://www.gamesindustry.biz/articles/2017-01-26-two-speed-market-drove-over-usd30-billion-in-games-deals-in-2016
6 Essential facts about the computer and video game industry in 2015: http://www.theesa.com/wp-content/uploads/2015/04/ESA-Essential-Facts-2015.pdf
7 Kondycja polskiej branży gier wideo 2015 (“Condition of the Polish videogame market 2015”), Krakowski Park Technologiczny: http://www.kpt.krakow.pl/wp-content/uploads/2015/09/Raport_A4_Web.pdf