Global Video Games Market To Reach A Staggering $187.7 Billion This Year, Study Reveals

Mobile games are poised to maintain their dominance in the gaming market, projected to contribute nearly 50 per cent of global gaming revenues in 2023.

Consumer spending on video game hardware in the United States has been soaring, boasting a remarkable 23 per cent upsurge in the first half of 2023.

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The global video games market is poised for a remarkable comeback this year, driven by strong console sales, particularly Sony's PlayStation 5, according to gaming market research firm Newzoo. It predicts a 2.6 per cent surge in industry revenue, amounting to a staggering $187.7 billion in 2023, bouncing back from a 5 per cent decline experienced in 2022, as indicated by the firm's data. The upswing is primarily attributed to the resounding success of console sales, expected to witness a substantial 7.4 per cent increase during the year.

Newzoo's analyst, Tom Wijman, credits this recovery to the launch of eagerly awaited delayed titles throughout the year and the amelioration of supply issues for new consoles, satisfying the pent-up demand. Particularly, Sony's PlayStation 5 stands out, with the company projecting record-breaking sales of 25 million units this year, aided by the easing of supply chain challenges.

Consumer spending on video game hardware in the United States has been soaring, boasting a remarkable 23 per cent upsurge in the first half of 2023, according to market research firm Circana. However, spending on video game content remained stagnant during this period, with gamers displaying a preference for established franchises such as Activision Blizzard's Call of Duty.

Nonetheless, some gaming companies encountered challenges. Electronic Arts, the publisher of Apex Legends, anticipates lower net bookings for the September quarter due to reduced in-game spending on items like character skins. However, the company remains optimistic about its 2024 bookings forecast, banking on the highly anticipated release of EA Sports FC, a football franchise game scheduled for launch in September.

Mobile games are poised to maintain their dominance in the gaming market, projected to contribute nearly 50 per cent of global gaming revenues in 2023. Yet, Newzoo highlights potential obstacles arising from Apple and Google's privacy policies, potentially hindering their monetisation efforts.

On another front, cloud gaming has shown great promise as a technology that allows gamers to stream titles directly on various devices, regardless of their technical specifications. Newzoo forecasts that by the end of 2023, cloud gaming could attract around 43.1 million paying users.

As the video game industry gears up for an exhilarating revival, industry players and consumers alike are eager to witness the forthcoming innovations and gaming experiences that lie ahead.