Newzoo, a market research company, has announced its final adjusted estimates and analysts’ forecasts for the global games market in 2023. This update comes as a precursor to the release of the 2024 market report in July. In August 2023, Newzoo initially predicted that the games market would generate $187.7 billion. However, their latest report reveals a downward adjustment, with the new estimate at $183.9 billion, a decrease of 2%.
Shifts in Revenue Streams
According to Newzoo’s revised estimates, mobile gaming no longer accounts for more than half of the overall revenue. In 2023, mobile gaming revenue is projected to be $89.9 billion, down 2.1% compared to the previous year. In contrast, revenue from PC gaming has seen a significant increase of almost 9%. When combined with the console market, the PC segment generated $94 billion, reflecting a 3.1% year-over-year growth. One of the factors contributing to this growth is the implementation of cross-platform release strategies. For instance, Sony’s recent earnings report highlighted the success of Helldivers 2, which was simultaneously launched on both PC and PlayStation platforms. Steam accounted for 60% of the game’s sales in February, demonstrating how cross-platform releases can drive revenue.
Changing Patterns in Gaming Habits
A notable change observed in 2023 is that gamers are spending less time playing compared to the peak period during the pandemic. Average quarterly playtime has declined by 26% since Q1 2021. Despite the availability of a vast array of games, players are not necessarily engaging with them en masse. In fact, only 43 games managed to capture 90% of new game revenue in 2023, while 66 titles accounted for 80% of global playtime.
Future Growth and Projections
Despite the current decline in revenue and changes in gaming habits, Newzoo predicts that the games market will rebound. Their adjusted report suggests that games revenue will increase to $207 billion by 2026. Furthermore, they anticipate a 6% year-over-year growth in 2025, a higher estimate compared to their previous report. The upcoming 2024 predictions for the gaming market will be released in July, offering further insights into the industry’s future trajectory.
In conclusion, the global games market is experiencing fluctuations in revenue streams, with mobile gaming losing its majority share. The rise of cross-platform releases has contributed to the growth of PC and console gaming. Additionally, changes in gaming habits indicate a decrease in playtime and a concentrated focus on a limited number of games. However, Newzoo remains optimistic about the industry’s future, projecting a rebound in revenue and consistent growth over the coming years.