Next-Gen Consoles to Inspire Future Generation of Gaming
Updated: Jan 14, 2021
According to Newzoo, Global eSports revenues will continue to grow to $1.1 billion by the end of 2020, a year-on-year growth of +15.7%, up from $950.6 million in 2019. Of that 2020 global revenue, $822.4 million is predicted to come from media rights and sponsorships. In order to capitalize on those numbers, both Microsoft and Sony are set to release their own next-generation consoles this holiday season.
Microsoft's Xbox Series X and Sony’s PlayStation 5 are on every gamer’s radar. So much craze has been surrounding these next-gen consoles, that both companies are having to increase their limited pre-order stock. Both the Xbox X and PS5 are set to release in early November 2020.
Improvement in technology results in an increased gaming market. Newzoo predicts console gaming will grow +6.8% year on year to $45.2 billion, boasting over 729 million players. Engagement and revenues are also set to grow due to the lockdown measures. Anyone who has tried to purchase a gaming controller in the past 5 months has found the shelves empty, evidence of how the pandemic is benefitting the market.
Thanks to popular streaming networks like Twitch, the world's leading live streaming platform for gamers, even those who can’t afford the new systems will be online watching others who get their hands on the consoles first. Fans will be able to check out the improved graphics and other capabilities, which will drive revenue for Microsoft and Sony. Additionally, the streamers themselves will be producing more and therefore earning more money through sponsorships. Making a name for yourself as a professional eSports gamer opens the door to more elite sponsorships. Large companies sponsoring gamers include Red Bull, Mountain Dew, Honda, and Intel.
These next-gen consoles will also bring along new games, exciting those who seek to make a name for themselves by ranking within a new game. New games can create a market for new jobs, as previously unknown players build their skills and find success in building a community of followers.
Fame can happen fast! Popular streamer, Tyler ‘Ninja’ Blevins, had a meteoric rise in popularity since “Fortnite” launched, with his Twitch following soaring from roughly 500,000 people in September 2017 to nearly 13 million today.
From predicted trends, there is no indication that the increasing gaming market will slow down anytime soon. Even as our current circumstances are causing sluggish numbers in many industries, the gaming/eSports world has flourished during the pandemic. As long as companies like Microsoft and Sony are able to keep up with demand, there is no stopping the next generation of gamers.