Video Games Market Value Will Grow to Over $200 Billion by 2023

Video Games Market Value Will Grow to Over $200 Billion by 2023

Foto: Depositphotos

The video games industry will exceed $200 billion in value in 2023; growing from an expected $155 billion in 2020, according to Juniper Research. Mobile and cloud gaming will lead this growth, as the market shifts further towards recurring revenue, and purchase revenue declines by 5% over that period.

The new research notes that the popularity of F2P (free-to-play) games like Fortnite and Call of Duty Mobile is intensifying the move to in-game monetisation. The report shows that cloud gaming and other video game subscriptions will grow at an average rate of 9% per year; bringing in over $8 billion of revenue in 2023. However, this will not immediately compensate for declining purchase revenue.

"At current gaming subscription prices, it will take an average of ten months of a subscription payment to cover the retail cost of a single AAA game," remarked research co-author James Moar. "The value of these platforms lies in keeping players within an ecosystem; ensuring that revenue across multiple games is captured by a single platform."
Thanks to gamers signing up to subscription services like EA Access, Google Stadia and Xbox Gamepass and buying fewer standalone games, only mobile games will see a net increase in games installs between 2020 and 2023. However, 99% of mobile game downloads in the next three years will be F2P. We anticipate less than 50% of PC game installs over that period to be paid for, due to a combination of game giveaways and F2P business models.

PC games will be the most lucrative segment for in-game purchases; approaching $32 billion in 2023. While mobile games will have more purchases, higher value game expansion purchases will keep PC in-game revenue growth strong. Smartphone in-app revenue will grow at an average of 8% over the forecast period, as smartphone gaming in emerging markets grows.

More from category

Mobile Business Messaging Will Reach 2.7 Trillion Globally in 2020

Mobile Business Messaging Will Reach 2.7 Trillion Globally in 2020

23 Oct 2020 comment

A new study from Juniper Research has found that global mobile business messaging traffic will increase by 10% this year to 2.7 trillion, up from 2.5 trillion last year.

Consumer PC Demand in EMEA Continues to Boom

Consumer PC Demand in EMEA Continues to Boom

22 Oct 2020 comment

The Europe, Middle East, and Africa (EMEA) traditional PC market posted strong growth in 3Q20 (11.7% YoY) and totaled 21.0 million units, according to IDC.

Consumer Mobility Preferences Shift as the Pandemic Forces Changes

Consumer Mobility Preferences Shift as the Pandemic Forces Changes

20 Oct 2020 comment

The acceleration of consumer mobility preferences have rapidly shifted as a result of the COVID-19 pandemic, according to PwC.