COVID-19 pandemic drove games industry growth by 12% to $139.9 billion; free-to-play, mobile games dominate

The year 2020 was filled with unprecedented challenges to many businesses, but not to the video games industry. The games market reportedly grew by 12% in 2020 to $139.9 billion as the COVID-19 pandemic wreaked havoc around the world.

Free-to-play leads in games revenue; mobile platform dominates market share

First, it should be noted that the pandemic still posed new obstacles even for the biggest video game companies. Many studios were forced to let their employees work from home, which drastically altered development timelines. This manifested in the many delays announced last year.

However, in terms of revenue and market share, the pandemic had a different and more favorable effect on the video games industry. The above-mentioned figures were reported by research firm SuperData and they attribute that growth to COVID-19 with a major improvement observed after February. Note that most lockdowns and stay-at-home orders worldwide were implemented starting in March.

A large portion of games revenue (78%) was reportedly generated by free-to-play titles. The fast-spreading novel coronavirus has also led to stay-at-home orders worldwide, which lasted for a few weeks to several months. Schools and work have also been suspended for certain periods while public gatherings have also been prohibited.

All these factors have, unsurprisingly, gave people more time to play video games. In the United States alone, the research firm estimated that 55% of its residents have played video games throughout the year.

SuperData also reported that the mobile gaming platform dominated the total market share at 58%. Tencent’s “Honor of Kings” and “Peacekeeper Elite” also saw major victories after each earning more than $2 billion in 2020. “Pokémon Go” and “Candy Crush Saga” are the top mobile titles in North America and Europe.

‘Among Us’ and Nintendo Switch are some of the big winners in 2020

“Among Us” is arguably became the most popular video game in 2020. SuperData called the game the “most popular game ever in terms of monthly players” after it gathered around 300 million monthly active users in November. This is even more interesting considering that “Among Us” was not a new release, but its sudden popularity among Twitch streamers helped it become a widely played game amid the pandemic.

Nintendo Switch shortage also became a problem as the pandemic intensified last year. The huge demand for the hybrid portable console was also likely driven by the release of the new game “Animal Crossing: New Horizons” last March.

Featured photo by Felipe Vieira on Unsplash