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Xsolla Reports 72% of Game Revenues in 2023 from Mobile

Discover the latest gaming trends and forecasts as Xsolla's Winter 2024 State of Play report highlights a substantial 72% share of game revenues from mobile platforms in 2023.

Eliza Crichton-Stuart author picture}

Eliza Crichton-Stuart

Head of Operations

Xsolla Report

Video games commerce company Xsolla has just released the winter 2024 edition of its State of Play Industry Report, providing a comprehensive overview of the global gaming landscape.

The report not only highlights the latest trends but also forecasts, shifts, and surprises that are set to influence the gaming industry. In this article, we summarize key findings from the report and highlight important insights for the future of web3 gaming. 

Berkley Egenes, Chief Marketing & Growth Officer of Xsolla, emphasized the report's value, stating: "As we unveil The State of Play Winter 2024 Edition, it’s clear the gaming industry is navigating a transformative era. This report, rich with data and insights, is a testament to our commitment to empowering developers and industry stakeholders."

Xsolla Report

Mobile Dominance

According to the report, one of the standout trends is the substantial rise in mobile gaming's contribution to overall revenues, accounting for an impressive 72% in 2023. This data reflects the continued popularity and profitability of mobile games within the gaming market. 

Xsolla's findings also indicate a significant increase in total sales and user count, rising by 44% and 22% respectively when comparing 2020-21 with 2022-23. While the growth rate has slightly reduced, the industry showcases resilience, adapting to the ongoing transitional period.

Xsolla Report

Global Growth

The report projects a 9.4% growth rate for the gaming industry's revenue in 2023 and anticipates an annual rate of 8.7% between 2024 and 2027. If these projections hold true, the gaming industry is poised to reach an impressive $363 billion by 2027. Notably, this growth rate surpasses that of the broader entertainment sector, which is expected to achieve a 2.8% year-on-year increase.

Comparing gaming with e-commerce, Xsolla draws parallels between the two industries' growth trajectories during the global pandemic. Both sectors embraced technology, leading to a surge in digital payments. While e-commerce revolutionized transactional convenience, mobile games have been utilizing in-app payment models for years, contributing to their continuous growth.

Xsolla Report

IP and Entertainment

The report also points to the success of gaming IP in the broader culture, citing examples like The Super Mario Bros Movie, which became the first game-inspired film to surpass $1 billion at the box office. With the success of consoles like the Nintendo Switch, Xsolla anticipates that the next generation of consoles, including the rumored Switch successor, will play a pivotal role in expanding the gaming market.

Looking ahead, the report acknowledges the importance of mobile gaming despite the evolving privacy challenges faced by developers. Additionally, it emphasizes the anticipated role of AI technology in enhancing gameplay experiences and driving innovation within the industry.

Reflecting on the report, Xsolla President David Stelzer expressed pride and excitement, noting the dynamic innovation within the gaming world. He stated: "Together, we're not just part of the gaming industry but actively shaping its future. I'm confident that our best days are still ahead."

Xsolla Report

Trends and Predictions

According to Chris Hewish, CEO and President of Xsolla, 40 of the top 100 mobile games have launched web shops using Xsolla tools, and the company has assisted more than 151 games altogether in launching web shops.

The global games market is expected to show sustained growth, projecting revenues of $211.2 billion by 2025, with mobile games contributing $103.1 billion driven by user spending. Cloud gaming is emerging as a significant disruptor, with an expected revenue of approximately $8.2 billion, and the VR gaming sector is projected to yield around $3.2 billion in revenue by 2024.

Xsolla Report

One intriguing section of the report explores real-time payments as a transformative force in global electronic payments. Nearly 28% of all electronic payments worldwide are projected to be real-time by 2027, with a remarkable year-on-year growth rate of 63%. Xsolla attributes this shift to advanced user-friendly features, citing success stories like Brazil’s PIX, a digital, low-cost, QR-code-based payment method.

The report also delves into privacy regulations and examines the Epic vs. Apple antitrust case. Despite Epic not securing a victory on their core demands, the case has marked the beginning of a shift in platform policy. The European Union’s Digital Market Act and DSA are expected to make platforms more open, providing developers with opportunities for more advantageous distribution and monetization of their games.

Final Thoughts

In the rapidly evolving landscape of gaming, the insights provided by Xsolla's State of Play Winter 2024 Edition hold particular relevance for the burgeoning realm of web3 gaming. As the industry witnesses the convergence of blockchain technology, decentralized platforms, and in-game economies, the report's comprehensive analysis becomes a valuable compass for developers and stakeholders navigating the transformative era.

The integration of diverse perspectives, emphasis on financial dynamics, and exploration of emerging trends not only fortify the understanding of traditional gaming markets but also provide a nuanced lens through which the web3 gaming space can be approached.

In the wake of real-time payments, evolving platform policies, and the growing influence of diverse voices in the industry, the report serves as a foundational resource for those seeking to capitalize on the opportunities and address the challenges inherent in the dynamic landscape of web3 gaming.

As the gaming industry continues to shape-shift, Xsolla's insightful report stands as a crucial roadmap for those venturing into the realm where technology, innovation, and community converge.


Industry ReportsNewsExclusive

updated:

February 8th 2024

posted:

February 7th 2024

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