The gaming market up 1.1% in Q1 2018 – techniques for tomorrow’s developers

In the year to the end of March 2018 (see my Figure) total grew by 1.1% to $7.0b, while unit shipments were down 6.1% to 7.3m. In the year to the end of March revenues were up 20.0% tp $33.1b and units up 21.7% to 50.8m.

I’m predicting that the total market will grow in revenues in 2018 before declining in 2019 and 2020. Over this period I expect units to remain at current levels. The reason is that we’re waiting for the next major console launch from Sony and Microsoft – although they’ll find it hard to emulate the resurgent success Nintendo has had with its Swith console.

The gaming market is very stochastic – driven up and down by the introduction of new platforms and the long periods during which the three hardware suppliers milk software revenues from their highly defended proprietary machines. Of the three console manufacturers Nintendo has done a better job of selling software and Sony in selling hardware in the last (see Figure).

Virtual reality, natural movement controllers, game playing – this market offers training for tomorrow’s developers and can prepare all of us for the next generation of the digital world.