Newzoo has released its final update to the Global Games Market Report 2023, revealing a significant downward revision of its initial revenue forecast. Initially projected at $187.7 billion, the gaming market's new estimate stands at $183.9 billion, representing a mere 0.5% year-over-year growth, a stark contrast to the previously anticipated 2.6%.

Comparison of Global Games Market Revenues Per Segment

Mobile vs Console Segments

The updated report underscores a notable decline in the mobile gaming segment, which now shows a 2.1% decrease year-over-year, reversing the previous expectation of 0.5% growth. The console segment's growth was also less robust than anticipated, with a meager 0.3% increase compared to the 7.4% initially forecasted.

Global Games Market Revenues Per Segment 2023

Conversely, the PC gaming segment saw a surprising uptick, with an 8.4% year-over-year increase, significantly higher than the original estimate of 1.6%. This surge has partially offset the declines in other segments, contributing to the overall market performance.

Regional Market Adjustments

Regionally, the market has faced various adjustments. The Asia-Pacific region, previously expected to grow by 1.2%, actually declined by 0.2%. North America saw its growth rate reduced from 3.8% to 0.3%.

Similarly, Europe and the MENA region (Middle East and North Africa) experienced lower-than-expected growth rates, while Latin America's growth was revised down to 2.2% from 3.8%.

Regional Market Analysis Revisions

Global Player Forecasts

The company also lowered its forecasts for the number of players worldwide in 2023 (from 3.38 billion to 3.3 billion). Moreover, the growth forecast has been reduced, with Newzoo now expecting 3.68 billion players in 2026 instead of 3.79 billion.

Global Player Forcast Comparison

User Engagement Trends

The report reveals a notable decline in user engagement, with average quarterly playtime decreasing by 26% since the first quarter of 2021. Despite the increase in available games, a limited number dominate the market.

In 2023, 43 games were responsible for generating 90% of new game revenue, and 66 titles accounted for 80% of global playtime. This reevaluation had a substantial impact on the Asia-Pacific region, where year-over-year growth dropped from an initial estimate of 5.7% to 2.4%.

Global Player Forcast Per Region 2023

Future Projections

Looking ahead, Newzoo has adjusted its 2026 revenue forecast from $212.4 billion to $207 billion. The number of global players is now expected to reach 3.3 billion in 2023, down from the previously estimated 3.38 billion. By 2026, this figure is projected to grow to 3.68 billion, slightly lower than the earlier forecast of 3.79 billion.

Future Projections

Despite these revisions, Newzoo remains optimistic about the long-term prospects of the gaming market. The report predicts a rebound with a 6% year-over-year growth expected in 2025. This optimism is partly attributed to successful cross-platform release strategies, as evidenced by the performance of titles like Sony’s Helldivers 2, which saw substantial sales on both PC and PlayStation.

Final Thoughts

Newzoo's latest update to its Global Games Market Report 2023 reflects the complexities and challenges faced by the gaming industry. While the market continues to grow, it does so at a slower pace than initially anticipated. Factors such as reduced mobile gaming revenue, lower player engagement, and regional market adjustments have all played a role in shaping the current landscape.

However, with strategic adaptations and a focus on cross-platform releases, the industry is poised for a potential rebound in the coming years. The full 2024 market report from Newzoo is expected in July, offering further insights into the evolving gaming market.