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Introduction

Ovum has identified five key trends across the video games industry, assessing the most interesting opportunities set to further shape the market in 2020.

Highlights

  • The push towards game subscription services will intensify. Having witnessed the rapid domination of subscription services in music and video, the leading technology and gaming companies have started making significant steps toward this lucrative business model.
  • Next year will see the first signs of significant cloud gaming uptake. Technical challenges and questions around the business model remain, but cloud gaming providers are now significantly better positioned for success than ever before.
  • Next-generation mobile AR games will make a splash; meanwhile VR will continue to grow. Technological leaps have brought AR to billions of devices. New VR headsets will boost interest, but the limited range of content will inhibit VR adoption.

Features and Benefits

  • Provides recommendations for service providers and platforms.
  • Assesses opportunities for telcos and technology vendors in gaming, AR, and VR.

Key questions answered

  • What key trends will shape the video game market in 2020?
  • How will video gaming continue to evolve in the next 12 months?
  • What opportunities will arise in video gaming in the next year?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for service providers and platforms
  • Recommendations for technology vendors

The push toward game subscription services will intensify

  • Tech giants make bold moves into subscriptions
  • Game subscriptions will be a tiny segment in 2020

2020 will see the first signs of significant cloud gaming uptake

  • Cloud gaming's second shot at success
  • Cloud gaming offers telcos 5G-bundling opportunities, further boosting its appeal

Ninth-generation game consoles are set for a successful launch

  • Console sales will stay strong, despite the cloud gaming threat
  • Cloud gaming is a blessing in disguise for console makers

Game makers will change tack on loot boxes because of mounting concerns

  • Microtransactions are, however, here to stay in triple-A games
  • As game publishers move away from controversial loot boxes, other more innovative forms of monetization will have to be implemented

Next-generation mobile AR games will make a splash; VR will continue to grow

  • Technological leaps in hardware and software have brought AR to billions of devices
  • AR and VR gaming data demands will create opportunities for telcos

Appendix

  • Methodology
  • Further reading
  • Author