Games industry market research firm Newzoo just published its latest Global Games Market Report 2023, showcasing the industry’s tremendous growth and continuous upward trajectory. Reaching new revenue and player heights, the industry is seeing an especially successful year. This doesn’t just benefit gaming companies around the globe, but also many developers and publishers based in LA.
Global games market revenue to reach $187.7 billion in 2023
According to Newzoo’s projections, the global games market revenue is estimated to reach $187.7 by the end of this year, a 2.6% increase year-on-year. The number of gamers is also set to reach new heights, with the global gamer count projected to be 3.38 billion by the end of the year – meaning that now more than 40% of the world’s population is playing games, with the emerging regions driving player growth. This is positive news for gaming companies across the world, including those based in California. As we’ve listed on BuiltInLA, Los Angeles is home to many gaming companies, including PlayStation, Riot Games, Naughty Dog, EA, MobilityWare, and many more, all benefiting from and driving the industry’s continued growth.
2023 is a particularly successful year for games. This, in part, is due to the release of a whole bevy of big-hitter video games that came out within a short interval this year. Many of these, including big titles such as The Legend of Zelda: Tears of the Kingdom and Starfield, were originally slated to release in 2021 or 2022, but have seen delays due to a variety of challenges. Their delayed launch is now boosting this year’s sales numbers, with console sales projected to reach $56.1 billion in revenue, a 7.4% increase from last year. While console has been the industry’s growth driver, it’s the mobile gaming segment that is making up the biggest share of the market’s revenue. Mobile game revenues account for all but half of the entire market (49%) and are set to reach $92.6 billion this year. While the importance of the mobile gaming segment can’t be understated, it has seen reduced growth this year, partially due to regulatory challenges.
Gaming is now more accessible than ever
Before mobile gaming came about, people had to buy specific gaming hardware or a computer capable of running games in order to play. In addition to the hardware, you also always had to pay for the game upfront. Nowadays, the entry barriers have been lowered tremendously, thanks to mobile gaming and free-to-play games. Smartphone penetration across the globe has been growing steadily, while technological advancements make these mobile devices more powerful. With these developments, now everybody who has a smartphone can easily play – oftentimes without paying anything. The app stores offer millions of games that can be downloaded and played either completely for free or at a low cost. Thanks to the free-to-play model, users can play games without paying a purchase price. They then have the option to pay for in-game items and other content. For this reason, it is especially easy to try out games at no risk.
The great variety of games is also driving gaming popularity, as every type of player can now find something that will suit their taste. From casual and classic games all the way to AAA video games, users are spoiled for choice. Especially casual games such as Candy Crush Saga, Flappy Bird, etc. have drawn many new players in as they have simple gameplay that doesn’t require any prior gaming experience. Similarly, classic games that used to be offline are now easily available to play online and on the go. For instance, users will find various free chess apps to challenge players from around the world, while the Risk app lets you play the classic strategy board game at any time, anywhere. Traditional casino games have also made their way into the digital realm, with the online platform CasinoBonusCA offering a large library with thousands of online slot games that can be played for free on PC and mobile devices. All these types of games and their accessibility make it easy for new gamers to jump into various game worlds, further driving game popularity.
The positive projections published in Newzoo’s Global Games Market Report 2023 prove that gaming has become a tremendously popular form of entertainment around the world. Reaching record heights in revenue and player numbers, 2023 is set to be a very successful year for gaming companies in LA and the global industry at large.