• April 21, 2017

Top Gaming Companies Saw Impressive Growth in 2016

Tourist woman social networking on mobile phone, in Madrid

Top Gaming Companies Saw Impressive Growth in 2016

Last year, the game revenues of the top 25 performing public companies put up impressive numbers, generating a total of $70.4 billion. What was even more impressive than that 17 percent year-over-year increase though, was the performance of the top 10 public companies, whose combined $53.7 billion represented a 24 percent increase.

Last year’s top ten performing companies collectively produced 54 percent of the global games market, a much greater share than in years past.

While some of this industry growth was made possible from acquisitions and mergers, the majority of the growth was organic and highlights the competitive edge that leading gaming companies continue to enjoy.

Figures from 2016 were tracked by Newzoo and broken down in the company’s Global Games Market Report. For the companies that ranked 11 through 25, growth at the aggregate level didn’t see much activity, but the individual level was a much different story. There was a mix of high growth and flat performance, with Take-Two, Square Enix, and Ubisoft showing the most change.

Making up 10 percent of the overall global revenue in gaming was Tencent, a company that produced more than $10 in 2016. If revenues from Supercell, a company acquired by Tencent in June of 2016, are figured in, Tencent generated a whopping $12.5 billion, accounting for 13 percent of the total global market last year. In second place was Sony, which produced $7.8 billion and is followed by Activision Blizzard with $6.6 billion.

NetEase, ranked at number seven for performance in 2016, saw the highest individual increase from 2015 to 2016. Thanks to its strong mobile performance in China, NetEase produced $4.2 billion last year and appears to be on target to surpass that number in 2017. NetEase produced four of the five highest grossing games for iOs and three of the five highest grossing games for Android in China, as of this February. Onmyoji is its best performer, having not left the top grossing charts since its release last September.

Activision Blizzard has the second highest jump in revenue, largely because of its very successful title Overwatch and its acquisition of King.

Nintendo, despite remaining in the top 10 rankings, saw a revenue decline in 2016, and was the only top 10 company to produce such results. The company’s two biggest titles last year, Pokémon GO and Super Mario Run, performed well out of the gate, but interest in the games rapidly declined as the year went on. Nintendo’s hardware sales for its Wii U platforms also dramatically decreased in 2016. Its recently released Nintendo Switch will need to perform well to turn the company’s fate around for 2017.

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