Global games market is growing – but slowly

Author Moonshot.news

Published on: 23/08/2024

Despite global average time spent on gaming has been dropping since the first quarter of 2021 and increasing industry consolidation, growth is still returning to the global games market, albeit slowly. In 2024, the global games market will generate $187.7 billion, representing +2.1% year-on year growth, gaming data firm Newzoo says in a new forecast.

The report estimates that global paying gamers will rise by +5.0% to 1.50 billion in 2024 and reach 1.67 billion by 2027. More players are spending on gaming software every year.

Key findings: 

• The number of players globally will reach 3.42 billion in 2024, a +4.5% year-on-year increase. PC player growth will drive this increase substantially. 
• PC revenues, up +4.0% year on year to $43.2 billion, will outgrow mobile and console revenues this year before the roles reverse again from 2025 onward. Cross-platform releases, evergreen titles, and a lack of console content will drive growth. 
• The console gaming market will be relatively dormant this year. It’s expected to decline by -1.0% year on year. After two slower years for console, growth is expected to return with a bang in 2025. 
• By growing +3.0% year on year to $92.6 billion, mobile gaming is responsible for 48% of this year’s global revenues. Revenue growth is driven by improving economic conditions, the continuous performance of existing games, and a few recent heavy hitters. 
• The total market will grow with a CAGR (2022-2027) of +3.1% and is expected to reach $213.3 billion in 2027.

“Game development has always been a costly endeavour, but today’s development costs are moving past what many studios can handle. The global games market is no longer growing fast enough to provide sufficient returns on many developers’ investments, so developers must adapt to the current environment”, the report says. 

“Mobile app ecosystems are evolving thanks to regulatory bodies worldwide passing ground breaking legislation. Companies like Apple and Google have been forced to dismantle the barriers of their previously exclusive environments to allow alternative app marketplaces and payment methods within their ecosystems.” 

“Perhaps the most notable regulation is the European Union’s Digital Markets Act (DMA), which has compelled major mobile platforms to open their storefronts as of March this year. Epic Games and Microsoft, among other companies of varying statures, are already planning strategic expansions into mobile gaming”, Newzoo says in the report.