PwC predicts moderate growth for U.S. video games, fast growth for VR and esports

Once a year, accounting and consulting firm PwC sorts out its predictions for games, technology, and entertainment. This year, it is predicting moderate growth of a 6.3 percent compound annual growth rate for U.S. console video games through 2021, but it believes that virtual reality and esports will grow at much faster rates.

Console game revenue was $21 billion in 2016, and it is expected to grow by a 6.3 percent CAGR to $28.5 billion in 2021 in the U.S. That doesn’t include PC games microtransaction revenue, which is expected to grow from $3 billion in 2016 to $4.2 billion in 2021 at a 7 percent CAGR. That growth is due to the ongoing success of free-to-play games, more subscription services, and a PC industry reinvigorated by esports.