Newzoo1 – a renowned global provider of games and e-sports analytics – estimates the volume of the global videogame market at 184.4 billion USD at the end of 2022, which corresponds to a 4.3% decrease compared to the 2021 year-end value, and a 3.0% increase compared to the end of 2020. This first-ever decrease in global market volume reported by Newzoo is linked, among others, to the elevated baseline values from the past two years, which were driven by the COVID-19 pandemic. Newzoo also points to unfavorable global economic conditions, which resulted in a decrease in disposable household income, and therefore in videogame-related spending.
In the past year only the PC gaming segment was reported as having grown – by 1.8% y/y, reaching 38.2 billion USD at the end of 2022. In contrast, both the mobile and console gaming segments shrank. According to estimates the former lost 6.4% y/y, with a year-end figure of 92.2 billion USD, while the latter lost 4.2% y/y, shrinking to 51.8 billion USD.
Global videogame market in 2022 by device type (%)
Source: Newzoo
Estimates published by ESA (Entertainment Software Association)2 concerning the US market, which is the most important region from the point of view of the Group’s activities, confirm the domination of smartphones in this area, followed by consoles and PCs. 70% of American gamers include smartphones among their most frequently used gaming devices, with consoles and PCs coming in at 52% and 43% respectively.
Long-term projections remain bullish. Newzoo estimates that by 2025 the volume of the global videogame market will reach 211.2 billion USD3, which implies a cumulative annual growth rate (CAGR) of 4.6% for the 2022–2025 period. According to PWC’s “Global Entertainment & Media Outlook 2022–2026”4 report, the videogame and e-sports market is expected to grow by 8.0% annually during this period.
1 Newzoo’s Games Market Estimates and Forecasts, Newzoo, 20 January 2023, accessed on 26 January 2023; newzoo.com/insights/articles/the-latest-games-market-size-estimates-and-forecasts
2 2022 Essential Facts About the Video Game Industry, accessed on 26 January 2023; theesa.com/resource/2022-essential-factsabout-the-video-game-industry/
3 Newzoo’s Games Market Estimates and Forecasts, Newzoo, 20 January 2023, accessed on 26 January 2023; newzoo.com/insights/articles/the-latest-games-market-size-estimates-and-forecasts
4 Perspectives from the Global Entertainment & Media Outlook 2022–2026, PwC, accessed on 26 January 2023; summary available at pwc.com/gx/en/industries/tmt/media/outlook/outlook-perspectives.html