Which Are the Biggest Video Game Companies in the World?
Video games have become the most profitable medium of entertainment for IT business companies. No matter where you go, you will find people indulging in some form of video game or other. Be it killing some time at the airport or the bus stop or taking a break from your daily office work, video games can easily pass off as the favorite leisure option for many. They have significantly evolved from the initial days of hand-held gaming consoles like Atari and Nintendo to the modern-day gaming monitors and home video game consoles like PlayStation and Xbox. With the ever-evolving technological industry, video games too continue to evolve with each passing day. Running a video game business is not easy these days due to the intense competition in the market hence you need to have some necessary skills to help in business.
You might be wondering how large the video gaming sector is? Well, it’s extremely large, even larger than the music and movie industries combined and it’s growing each and every day. Even though it doesn’t attract the same attention as the other two industries, there are more than two billion active gamers worldwide – that’s almost 26% of the entire world population.
Which Are the Fastest Growing Gaming Companies in the World?
The creation of video games has become more complex, and making a game run successfully on a gaming console involves even greater complexity. Video games nowadays cost hundreds of millions of dollars. The rapid growth in the popularity of video games is helping console makers and gaming companies such as Activision Blizzard, Take-Two Interactive Software, Electronic Arts, Apple, and Microsoft Corporation earn billions of dollars. Here’s a list of the fastest-growing video game companies in the last five years.
Founded in 1946, Sony remains the biggest video game company in the world to date. The Japanese IT giant creates most of its revenue, totaling $25 billion in 2021, through its PlayStation 5, the world’s most popular video game console. It also produces many original video games for its console.
Amongst the companies that solely create video games, Tencent stands out as the world’s largest video game company. The Chinese conglomerate garnered revenue of $13.9 billion in 2021. Tencent mainly creates online and mobile-based games and also owns Riot Games, an American game studio known for creating League of Legends.
Nintendo is a Japanese video game company based in Kyoto. Nintendo amassed revenues of $12.1 billion last year mostly through the sale of its flagship Nintendo Switch hand-held video game console as well as Animal Crossing: New Horizons, the best-selling game for the Nintendo Switch console to date.
The world’s largest software company is also the fourth largest video game creator. Microsoft made about $11.6 billion with its Xbox Gaming Studios, the gaming branch of the tech giant. Xbox Gaming Studio makes games for Xbox platforms and other mobile platforms. Additionally, Microsoft owns the Swedish video game studio Mojang, known for creating Minecraft, the most popular video game in history.
One of the best gaming companies in the world right now, Activision Blizzard, was founded in 2008 as a result of the merging of two American video game companies, Activision and Blizzard Entertainment. Activision Blizzard generated $8.1 million in 2021 and is most notable for creating games like the World of Warcraft series and the Call of Duty series.
Coming next on the list is Electronic Arts, with a revenue of $5.5 billion last year. The company claimed that more than 25 million people are actively playing their FIFA 21 flagship game while around 100 million players play Apex Legends.
Take-Two Interactive Software
Take-Two Interactive Software was founded by Ryan Bryant in 1993. As a holding company, Take-Two has two renowned game development studios under its belt – Rockstar Games and 2K and generated revenue of $3.1 billion in 2021. Its most profitable game sold last year was NBA 2K21.
Another leading video game company, Sega Sammy, was founded in 2004 by the merger of Sega and Sammy Corporation. The company is based in Tokyo, Japan, and created revenue worth $2.3 billion in 2021. Its most notable game sold in 2021 was Total War Saga: Troy.
Although a toy manufacturing company, Bandai Namco generated gaming revenue worth $2.2 billion last year with the sale of the game Dragon Ball Z: Kakarot. It was founded in 2005 in the Tokyo prefecture of Japan.
As the number of gamers is increasing day by day, gaming companies are focusing on creating more immersive games to meet their expectations. Overall, the future of the video game industry is very bright and is expected to soar even higher in the coming years.