The global video games market is set for a remarkable resurgence this year, bolstered by robust console sales, particularly driven by Sony’s PlayStation 5, according to a study conducted by gaming market research firm Newzoo. The analysis projects a substantial 2.6 percent increase in industry revenue, culminating in an impressive $187.7 billion for the year 2023. This upswing follows a 5 percent decline in the previous year, as indicated by Newzoo’s data. The resurgence is primarily attributed to the resounding success of console sales, which are anticipated to witness a significant 7.4 percent growth throughout the year.
Analyst Tom Wijman of Newzoo attributes this recovery to the launch of eagerly awaited delayed titles and the improvement of supply chain issues for new consoles, which have successfully addressed pent-up demand. Notably, Sony’s PlayStation 5 stands out, with the company forecasting record-breaking sales of 25 million units in the current year, largely aided by the alleviation of supply chain challenges.
Consumer expenditure on video game hardware in the United States has experienced a remarkable surge, boasting an impressive 23 percent increase during the first half of 2023, as reported by market research firm Circana. However, spending on video game content remained relatively stagnant during this period, with gamers displaying a preference for established franchises such as Activision Blizzard’s Call of Duty.
Despite the positive trajectory, certain gaming companies have faced challenges. Electronic Arts, the publisher of Apex Legends, anticipates lower net bookings for the upcoming quarter due to decreased in-game spending on items like character skins. Nonetheless, the company maintains a positive outlook for its 2024 bookings forecast, relying on the highly anticipated release of EA Sports FC, a football franchise game scheduled for launch in September.
Mobile games are expected to maintain their dominance in the gaming market, contributing nearly 50 percent of global gaming revenues in 2023. However, Newzoo points out potential obstacles arising from the privacy policies of tech giants Apple and Google, which might impede monetization efforts.
In addition, cloud gaming has displayed significant promise as a technology that enables gamers to stream titles directly on various devices, regardless of their technical specifications. Newzoo’s projections suggest that by the conclusion of 2023, cloud gaming could attract approximately 43.1 million paying users.
As the video game industry prepares for an exhilarating resurgence, both industry players and consumers eagerly anticipate the forthcoming innovations and gaming experiences that lie on the horizon. The resurgence in console sales, coupled with advancements in cloud gaming and the sustained popularity of mobile gaming, paints a vibrant picture for the future of the gaming industry.
