Growth Continues After COVID-19
NC and Nexon Challenge the Console Market
[Asia Economy Reporter Seungjin Lee] As COVID-19 cases rapidly decline and the world returns to normal life, the gaming market is still expected to continue its growth trend. This year, the global gaming market is projected to surpass 3 billion users for the first time, with console games and the mobile market maintaining high growth.
Games to Grow 5.4% Even After COVID
According to Newzoo, a global market research firm, the global gaming market size is expected to reach $203.1 billion (based on revenue, approximately 258 trillion KRW), a 5.4% increase from the previous year. The number of game users is predicted to exceed 3 billion for the first time, reaching 3.09 billion.
Mobile games, which grew rapidly due to COVID-19, are expected to continue their strong growth this year. Annual mobile game revenue is anticipated to increase by 5.1% from the previous year to $103.5 billion. This is the first year annual revenue will surpass $100 billion.
The sector expected to show the highest growth is console games. It is projected to grow 8.4% year-over-year, generating $56.9 billion in revenue. On the other hand, PC games are expected to enter a stagnation phase, with a growth rate of only 1.9% compared to the previous year. Unlike console games, the lack of a clear subscription system and the migration of many users to mobile and console platforms are factors.
By region, the United States ($50.5 billion), which had lost the top spot to China ($50.2 billion) in the gaming market, is expected to reclaim first place this year. China recently strengthened game regulations, including a complete ban on live streaming of online games without domestic approval last month, leading to forecasts of an overall contraction in the gaming market this year.
Game Industry Competes with Major Titles in Console Market
After several years of a dry spell for new releases, the Korean game industry plans to launch a series of major new titles this year. In particular, it is challenging the console market, which is expected to see high growth this year, by releasing console games that had been considered a weakness until now.
NCSoft will release its new title, "Throne and Liberty (TL)," targeting North America and Europe in the fourth quarter of this year. TL is a massively multiplayer online role-playing game (MMORPG) developed by NCSoft for PC and console platforms. The official TL trailer, released in March, surpassed 8 million views on YouTube within 12 days, with half of the views coming from North America and Europe, raising expectations.
Nexon will launch the fighting game "DNF Duel" on June 28. It plans to provide services on major gaming distribution platforms such as Steam and PlayStation (PS) 4 and 5, targeting global users in Korea, Japan, North America, and Europe. "DNF Duel" is a reinterpretation of Nexon's flagship intellectual property (IP), "Dungeon & Fighter," which has a global cumulative user base of 850 million. Additionally, Netmarble, Pearl Abyss, and Com2uS are also expected to release major new titles in the global market this year.
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