PS5 And Xbox Series X Will Help Australian Video Game Industry Rebound, IGEA Says

The Australian video game market saw its first decline since 2012, but things are looking better for 2020.

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A new report from Australia's Interactive Games & Entertainment Association (IGEA) has revealed that the Australian video game market experienced a decline in 2019.

The IGEA's report said the Australian video game industry generated $3.614 billion in 2019, which compares to more than $4 billion in 2018. It was the first time since 2012 that the Australian video game market saw a decline in value. This is total sales, not just for video games developed in Australia.

For comparison, the US video game industry--which is among the largest video game markets in the world--generated more than $35 billion in 2019 (and that doesn't even count hardware).

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2019 was always going to be a tough year due to the gigantic success of Fortnite in 2018 that helped boost the industry and inflate the numbers. And while the $3.614 billion is down from 2018's numbers, it's still 12 percent bigger than 2017's revenue.

Every category except subscription revenue experienced declines in 2019--subscriptions jumped by 28 percent in 2019 to $273 million. You can see the key datapoints in the image above.

Despite the year-over-year decline, the IGEA said it expects revenue from the Australian market to grow in 2020 thanks to the launch of the PlayStation 5 and Xbox Series X. Another growth factor in 2020 is the COVID-19 pandemic which is keeping people at home playing games and spending money on games.

One of 2019's most-talked-about games was Untitled Goose Game, which was developed by House House out of Melbourne, Australia.

The IGEA also said it surveyed Australian development studios, and about half said they are seeing stable or increased sales, and feel generally confident about growth in the future.

The PS5 and Xbox Series X are both scheduled to release later this year, but it remains to be seen what kind of impact there might be due to COVID-19. Xbox boss Phil Spencer recently spoke about the "massive economic uncertainty" in 2020 and how Microsoft wants to make Xbox as affordable as possible during this stressful time for people.

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