Global Games Market to Grow to $187.7 Billion in 2023
The gaming industry had a tough 2022, but things are looking better in 2023. Last year, we saw high prices and low supply leading to a slight 5% decrease in revenue, but things are starting to fall into place this year.
Gaming Revenue Expected to Grow this Year
Research firm, Newzoo has now released a report where they’ve estimated that gaming revenue will rise to $187.7B (2.6% increase) in 2023. While the effects of COVID are mainly starting to wear off, the growth is being driven by a number of other factors, including the increasing popularity of mobile gaming, the growth of the console market, and the continued adoption of cloud gaming.
Right now, mobile gaming is the fastest growing segment of the global games market, and will probably account for more than half of the market by 2026. This growth is mainly because of the increasing popularity of smartphones and tablets, as well as the growing availability of better mobile games.
The console market is also expected to grow in the coming years, driven by the release of new consoles and the popularity of console-exclusive games. The release of the PlayStation 5 and Xbox Series X/S in 2020 has already given a boost to the console market, and this trend will likely grow as time goes on.
As for the regional distribution, the Asia-Pacific leads the global gaming scene, driven by India, China, Japan, and South Korea. In recent times, we can see how emerging markets in the Middle East & Africa and Latin America are experiencing a lot of rapid player growth due to better mobile internet, affordability, and a rising middle class. Not to mention, the rise of free-to-play games.
These challenges mean that mobile gaming is set to increase, but this year, we see the mobile growth slowing to 0.8%. Console gaming however has gained some momentum, generating $56.1 billion with a 7.4% YoY (year on year) growth, boosted by delayed releases.
North America and Europe combined contribute about 46% alone to the global revenues, growing by 3.8% and 3.2% respectively. Middle East & Africa and Latin America quite surprisingly have shown strong growth at 6.9% and 4.3%. Asia-Pacific, that is now dominating with 46% share, has a mere 1.2% growth due to China’s slower 0.7% rate.
Tencent Tops the List of Top Public Companies by Game Revenues in 2023
According to official figures, Tencent is currently the market leader with a revenue of $7.556 billion for 2023, followed by Sony with $4.380 billion and Apple with $3.683 billion. The top 10 public companies driving game revenues in 2023 include Microsoft, NetEase, Google, Activision Blizzard, EA, Nintendo, and Take-Two Interactive.
These rankings clearly showcase Tencent’s presence in this sector. While the console sector remains a proper revenue generator alongside the rapid increase in mobile gaming, don’t forget the cloud gaming sector too, that is rapidly gaining momentum.
This is all we know for now, but rest assured that we will keep you updated as new information becomes available
