• Several leading game publishers will become M&A targets, with tech giants the likely acquirers.
• Intense competition draws tech giants such as Sony, Google, Tencent, Microsoft, Nvidia, Meta, Amazon, as well as telcos such as Deutsche Telekom, Sunrise, KT and China Mobile into the space.

Even though mobile gaming is the biggest revenue earning segment in the video games industry, cloud gaming is expected to be the fastest growing segment, expanding from approximately $2 billion in 2021 to more than $30 billion by 2030, an industry expert said.

Rupantar Guha, Principal Analyst in Thematic Intelligence team at GlobalData said that cloud gaming will fundamentally change the video games industry over the next 10 years.

However, he said the market is at a very early stage.

Cloud gaming currently accounts for just one per cent of global video games revenue, rising to six per cent by 2030.

“Competition is intensifying, drawing in tech giants such as Sony, Google, Tencent, Microsoft, Nvidia, Meta, and Amazon, as well as telcos such as Deutsche Telekom, Sunrise, KT, and China Mobile to the space.”

Mobile gaming, played on both smartphones and tablets, to represent more than 50 per cent of the video games revenues in what will be a $470 billion industry by 2030, from $197 billion in 2021.

Guha said that mobile gaming is already bigger than the console and PC gaming markets combined, contributing nearly 57 per cent of global video game revenue in 2021, and this dominance is only set to continue.

“Due to its popularity and lucrative revenue opportunities, traditional console and PC game publishers such as Activision Blizzard and Electronic Arts are increasingly focused on mobile gaming.”

Moreover, he said the increased availability of 5G networks in the coming years will drive more users towards mobile gaming, especially multiplayer titles, which, in turn, will boost the growth of mobile esports.

Competition in the video game market more widely is especially high, with GlobalData’s report describing it as an “ideal example of a hypercompetitive market”. With low barriers to entry and lucrative revenue opportunities, the number of players in the market is continuously increasing. 

Guha said the gaming industry is in the throes of a transformation driven by themes such as 5G, augmented reality (AR), virtual reality (VR), esports, cloud gaming, and the metaverse.

As these themes mature, he said that competition will intensify among traditional game publishers, tech giants, and companies in other sectors (e.g., retail and tourism).

As a result, he said that several leading game publishers will become M&A targets, with tech giants the likely acquirers.