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The game industry is bouncing back

77% of game developers are optimistic and think that the gaming industry will grow significantly this year driven by funding opportunities, strategic acquisitions and fewer studio closures. 90% of gaming studios plan to release at least one new title, according to a report by game service firm Metaplay. 

This optimism is in line with a recent report from gaming data firm Newzoo that says growth is slowly returning to the global games market despite that global average playtime has been dropping since the first quarter of 2021 when so many were forced to stay at home because of the covid pandemic. 

Newzoo estimates that in 2024, the global games market generated $187.7 billion, representing +2.1% year-on-year growth. The total market will grow with a CAGR (2022-2027) of +3.1% and is expected to reach $213.3 billion in 2027. 

The Metaplay survey comprises 150 senior developers in the UK and US conducted by market research firm Atomik Research.

Much of the optimism among developers stems from expected success of live service games, Metaplay says.

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“An impressive 75% of developers are optimistic that live service games will generate more revenue than ever before.” 38% say live service is the most critical feature for a game’s success.

75% of developers expect a greater availability of advanced tools in 2025. 48% of developers are planning to adopt external technologies to enhance their workflows and deliver better results.

Over two-thirds of developers expect fewer layoffs and studio closures, and around three-quarters predicted more acquisitions and exits.

77% expect more funding via crowdfunding, angel investors, and community-backed initiatives.

63% of developers expect game development costs to be lower this year due to using AI technology, the Metaplay survey shows.

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Newzoo says that 2024 proved that nostalgia is a powerful force in gaming. “From live-service games offering “vanilla” (plain old) versions to the rise of remasters and remakes, players are revisiting the experiences they love. This trend speaks to a broader desire for familiar worlds and stories before diving into new ones.”

“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”, Newzoo predicts.

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 2024 before the roles are expected to reverse from 2025 onward. Cross-platform releases, evergreen titles, and a lack of console content will drive growth, the Newzoo report says. 

“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 represents 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”, Newzoo says. 

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