High Propensity to Spend

Computer games (mobile, desktop and platform) and E-Sports are benefitting from a rise in popularity and profitability as new models emerge.

Gamers have a high propensity to spend. US gamers spent $36bn on video games in 2017. Only 5% of app users spent money in-app but the amount spent is 20x higher than the amount earned from paid downloads.

Mathletes Become Athletes

There is serious money that’s being spent on E-Sports, which is beginning to challenge traditional sports.

Recently, Epic, the maker of Fortnite, announced that there would be $100m in prize money for the first year of competitions. In comparison, the prize pool for the US Tennis Open is $50m and the winner of the Tour de France could earn $500k.

New Hardware and Software

The rising amount of spend on and in games will encourage the development of new applications for video games.

The advances in technologies such as Virtual Reality (VR) and Augmented Reality (AR) stand to open up new ways of interacting online. New games and applications will be built on top of these emerging technologies.