i3 | December 02, 2020

Gaming More Than Entertainment

The COVID-19 pandemic has flipped life upside down for many people, altering the way they interact with friends, family and colleagues. According to a CTA report, COVID-19 Impact: Use of Technology at Home, less than 40% of Americans indicate that they would be comfortable participating in personal social activities and events in the next six months.

Another CTA survey, Content in the COVID-19 Era: Current Realities and Future Opportunities, found that 26% of Americans played video games for the first time while at home. These findings underpin the growing trend of Americans turning to video games during the pandemic as a tool for socialization, as well as a way to stay busy while at home.

Socialization is a key draw for new players to the medium, showcasing both the role of technology in interpersonal connection and the desire for interactive content. Video games are emerging as a dominant social media platform during the pandemic and the video game industry is embracing its role with further innovation. For example, Fortnite, a juggernaut in the gaming space, has moved from popular battle royale games to hosting live virtual concerts, with a performance by Travis Scott garnering 12 million concurrent online viewers/players. Students at UC Berkeley recreated their entire campus in Minecraft with impressive detail in order to stage a virtual commencement within the game. It featured addresses from the university administration, live music and even students using their avatars to digitally throw their caps.

The Role of Portable Consoles

A remarkable highlight for gaming this year is the increased use of portable consoles. Despite the expected release of next-gen home consoles at the end of 2020, consumers snapped up portable gaming consoles early in the year to such an extent that shortages were seen for weeks. CTA estimates that 4.3 million portable consoles will be sold in 2020, a 10% increase from 2019. Looking beyond this year, portable console unit sales will see a dip in 2021 as more next-gen consoles enter homes.

Over the past few years home consoles have struggled to maintain their yearly unit sales, but that should change soon. After seven years, both Sony and Microsoft are set to release their next-gen consoles, PlayStation 5, and Xbox Series X, for the 2020 holiday season. A generational console refresh always boosts sales. CTA predicts over 13 million home consoles (including Microsoft, Nintendo and Sony) will ship in 2020, a 5% increase from 2019. Because next-gen consoles will be released so late in the year, the real impact will be seen in 2021. CTA predicts over 14.1 million units will be sold, a 9% increase from 2020.

In the wake of these exciting changes and increased consumer engagement in gaming, CTA anticipates a 10% increase in the gaming software market from 2019 to 2020, reaching $40 billion in consumer spending as the arrival of new consoles this holiday season boosts the space. Further, video games are set to follow the streaming industry model with 16% growth in gaming subscription services revenue in 2020, representing the fastest growing segment of the gaming software market.

Although the year 2020 is one that many may wish to forget, thanks to increased engagement, content and new consoles, 2020 could be such a lucrative year that leaders in the gaming industry may not want it to end.

Tune in for the latest gaming updates

7 years

After seven years, both Sony and Microsoft are set to release their next-gen consoles, PlayStation 5, and Xbox Series X.

5%

CTA predicts over 13 million home consoles (including Microsoft, Nintendo and Sony) will ship in 2020, a 5% increase from 2019.

14.1 million

The real impact will be seen in 2021. CTA predicts over 14.1 million units will be sold, a 9% increase from 2020.

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