A new report has surfaced the internet indicating that the video game industry generated $43.8 billion as revenue last year. The report noted that this record figure marks an 18 percent increase in the revenue when compared to the figured noted for 2017. More than the increase in the revenue generated, the report also noted that the gaming industry was able to beat the estimated revenue generated from the “total global box office” by the film industry.
One may think that the film industry and the video game industry are focused on two different mediums of entertainment but video games were also able to beat the video streaming industry. For context, according to the report by TechCrunch, the streaming industry is expected to make “around $28.8 billion” in 2018.
The findings of the video game industry coming on the top were initially reported in the data by The NPD Group and the Entertainment Software Association while the box office estimates were provided by comScore. The earning indicate the rise of video games as the new source of entertainment for the upcoming generation marking a shift away from traditional forms of entertainment such as the movie industry.
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According to the report, it is worth noting that companies such as Netflix are also aware of the threat that the video game industry poses in the long term. According to a recent report, Netflix CEO Reed Hastings stated in a shareholder letter that the video streaming giant considered Fortnite as its competition “more than HBO”. As part of the report, Mat Piscatella, an analyst for the video games industry at The NPD Group noted that all forms of gaming including console, PC, and mobile “saw significant growth”.
The report also noted that all aspects of the video games industry experienced growth. Though one thing to note here is that the reports are only taking the United States market into consideration. This includes hardware and peripherals sale, revenue generated by the software including subscriptions and in-game purchases experienced a growth.