In the video game industry, 2020 saw the launch of the next generation of video game consoles, with both Microsoft and Sony Interactive Entertainment having released the Xbox Series X/S and PlayStation 5 consoles, respectively, in November 2020. The industry was heavily affected by the impact of the COVID-19 pandemic which had begun in March and was characterized by COVID-19 lockdowns and remote work. While this caused numerous delays in software and hardware releases and the cancellation of live conferences and events in favor of virtual shows, it also created a boom for the industry as people turned to gaming as a means to pass the time. The industry also reacted to various political/cultural events.
Major hardware discontinuations in 2020 include the Xbox One X and Xbox One S All-Digital versions, which were discontinued on July 16.[11] The Nintendo 3DS family was discontinued on September 17.[12]
Financial performance
The global market for video games based on 2020 revenues was estimated to exceed $179.7 billion according to the International Data Corporation; the growth of 20% over 2019 revenues is attributes to the surge in spending in video games from the COVID-19 pandemic along with the releases of the new consoles.[13]
SuperData Research estimated the global video game market grew by 12% in 2020 to a total $139.9 billion in revenues. Mobile games accounted for over $73.8 billion or 58% of the market, with computer games at $33.1 billion and console games at $19.7 billion. Virtual and augmented reality had about $6.7 billion, while video gaming content such as online streamers generated an additional $9.3 billion.[14][15]
Newzoo estimated the global market for video games in 2020 was $177.8 billion, a 23.1% increase from 2019, buoyed by the COVID-19 pandemic. As a result, Newzoo anticipated that the 2021 market will see a small decline as the world recovers from COVID-19 and spending on video games slows down, but otherwise the industry would remain on track to break $200 billion in revenue by 2023.[16]
According to PricewaterhouseCoopers, while the overall global entertainment and media market dropped by 3.8% during 2020, the video game market grew by 10% over the year, due to the use of video games to help with social distancing during COVID-19 lockdowns.[17]
Largest markets
According to market research firm Newzoo, the following countries were the largest video game markets in 2020.[18]
The following are the top ten highest-grossing video games of 2020. Each of the top ten titles grossed more than $1 billion, while the top four grossed more than $2 billion each.[14][19] The majority of the top ten titles are published by Asian companies, including three from Chinese conglomerate Tencent which holds the top two spots.[14]
The following titles were the top ten highest-grossing free-to-play games in 2020. Three of the top ten free-to-play titles are published by Tencent, which holds the top two spots.[14]
Fortnite grossed more than $1 billion in 2020, but less than $1.41 billion. It fell out of the top ten, dropping from its top spot in 2019.[14]
Best-selling premium games
The following titles were the best-selling premium games (including buy-to-play titles) in 2020. Three of the top ten best-selling titles are published by Nintendo, including the year's top-selling game.
The following were 2020's top ten best-selling video games by region (excluding microtransactions and free-to-play titles) on PC and console platforms, for Australia,[35] Japan,[36] Europe,[37] and the United States.[38]
Activision Blizzard entered a multiyear deal with Google to exclusively broadcast all their esport content, via YouTube following the conclusion of a prior deal with Twitch.
Video game-centric crowdfunding and investment firm Fig was acquired by Republic, a larger investment firm, to expand Fig's capabilities for funding options.
Playcrafting hosted its fourth annual Play NYC event online this year. Panels included talks from Avalanche Studios, Private Division, and Rockstar Games. The event was also home to the annual Graffiti Games. This year's initiative highlighted the work of black game developers.
Epic Games released a version of Fortnite Battle Royale on iOS and Android that bypassed the stores' payment systems, leading to both Apple and Google to delist the game immediately, with Epic further turning around the same day to file lawsuits challenging the monopolistic behavior of both stores.
Rayman and Beyond Good & Evil creator Michel Ancel announced he would be leaving from the video game industry to focus full-time on a wildlife sanctuary. Ancel stated via Instagram that his two upcoming projects, Beyond Good & Evil 2 and Wild were in capable hands with his departure.
Amazon announced they would launch a cloud gaming serviceLuna. Games on the service would be offered via a channel-style subscription service, with the company's own games and those from Ubisoft available at the service's launch in October.
Take-Two Interactive and Codemasters agreed to a Take-Two buyout of Codemasters in a stock and cash deal around US$994 million, expected to be completed by early 2021.
Electronic Arts outbid Take-Two in acquiring Codemasters in a deal valued at about US$1.2 billion, expected to be completed by the first quarter of 2021.
The highly contagious coronavirus disease 2019, first observed in China in December 2019, began a major outbreak across the world in January 2020, which is ongoing as of November 2021. Within China, steps to prevent spread of the disease came around such as large-scale quarantine of affected populations which have impacted production within the country. This has had a large number of impacts on social, medical, and economic systems worldwide. The video game industry has been impacted by the outbreak in various ways, most often due to concerns over travel to and from China or elsewhere, or related to slowdowns in manufacturing processes within China. Numerous games have been delayed due to the COVID-19 pandemic, and most industry events were cancelled or reformated into virtual showcases.
The video game industry in general was boosted by the pandemic, since people under pandemic lockdowns were forced to stay home, with video games becoming a popular pastime. Total spending in video games grew to US$33.7 billion in the United States during the first nine months of 2020 compared to US$27.9 billion for the same period in 2019.[112] Easy-to-learn games with little to no narrative and large audience enjoyment potential, including Fall Guys, Among Us, and the Jackbox Party Packs, saw great increases in popularity during the pandemic as a means to avoid the "cultural trauma" of the situation.[113][114][115][116]
Reactions to the George Floyd protests
In the wake of the George Floyd protests and resurgence of support for the Black Lives Matter (BLM) movement across several entertainment sectors in June 2020, the video game industry also responded. Most large publishers and developers shared their support of the protests and BLM as with other larger entertainment companies.[117][118][119] A number of video game announcement events had been planned on the week of June 6 and onward as a virtual replacement for E3 2020 (cancelled from the COVID-19 pandemic), but most of these were shifted by a week or more to allow the voices of the protests to have the necessary focus.[120][121] Many companies announced plans to donate funds towards black-oriented organizations, including Electronic Arts, 2K Games, Riot Games and Humble Bundle committing US$1 million to such foundations, while others like Ubisoft, Square Enix and The Pokémon Company also committed to significant donations.[117][122][123]Itch.io raised over US$8.1 million for black charities through sales of a game bundle with games from over 1,300 developers.[124] Electronic Arts and Infinity Ward pledged to combat racism that they were aware had persisted by users in their games in light of the events.[125][126]
In late June and early July, as a continuation of prior #MeToo movement effects on the industry from 2017, several people started speaking out of specific accounts of sexual misconduct and harassment towards others in the industry. Initial complaints had been directed towards Twitch streamers but soon had reached major companies including Insomniac Games, and Electronic Arts, with most studios taking actions to deal with the accused and instituting better policies to handle internal and external issued related to sexual misconduct.[127][128] In particular, charges were made toward the CEO of Evolution Championship Series (EVO), Joey Cuellar, who was subsequently let go. Multiple publishers that had backed the event had pulled out on this news, and the EVO event, which had already been reworked as an online event due to the COVID-19 pandemic, was subsequently cancelled.[129] A large number of cases were found through Ubisoft's executive-level staff, leading to a number of high-level departures and major internal review of how the company handled such complaints in the future.[130]
↑Romano, Sal (May 1, 2024). "HYPERCHARGE: Unboxed for Xbox Series, Xbox One launches May 31". Gematsu. Retrieved May 27, 2024. The first- and third-person shooter starring sentient action figures first launched for Switch on January 31, 2020, followed by PC via Steam on April 27, 2020.
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