The
gaming
landscape
*Data provided by Alpha Vantage
The Economics
of Gaming
Gaming has witnessed remarkable growth in recent years, transcending mere entertainment to become a multi-billion dollar industry. In addition to delighting players and fostering cultural connections, games have evolved into a thriving sector of the global economy that entices even those outside the realm of interactive entertainment.
Entertainment Industry revenue split
Music
Box Office
On-demand Media
Gaming
What sets the gaming industry apart is its ability to bring together experts from diverse fields including IT, art, and storytelling. This amalgamation of talents makes the industry not only unique but also captivating for consumers, professionals, and investors.
Today, game development stands tall as the largest segment within the entertainment business, surpassing the combined revenues of music and movie industries by over two-fold.
Notably, its profits have seen a general trend of annual growth of over 10% since 2012. Although the global gaming industry has experienced a slowdown in growth recently, it is projected to continue improving in the coming years.
Source: Newzoo
Within this industry, mobile gaming has emerged as a dominant force, claiming a substantial share of the global market.
Global gaming revenue forecast
Recent years have witnessed a meteoric rise in mobile game revenues, soaring to an impressive $90 billion and constituting a significant 49% of the total gaming revenue worldwide. This surge can be attributed to the widespread adoption of smartphones and tablets, making gaming more accessible than ever before.
Source: Newzoo
PC gaming remains a significant player in the industry, generating revenues of $41 billion and commanding a respectable 21% share of the global gaming market. The appeal of PC gaming lies in its versatility, offering a diverse range of genres and experiences, from immersive AAA titles to hidden browser gems that captivate gamers worldwide.
Source: Newzoo
Global gaming revenue forecast
2021
2022
2023
2026F
+4.2% Total market CAGR 2024-2026
Console gaming continues to maintain its position as an integral part of the gaming market, contributing $53.2 billion in revenues and accounting for 29% of the total industry revenue.
Source: Newzoo
The Sociology
of Gaming
Dispelling the myth that gaming is solely for kids and teenagers, it is evident that gaming has no bounds in modern society.
% of game enthusiasts
Gen X
Gen Z
& Gen Alpha
It transcends age and gender boundaries, captivating a wide spectrum of individuals worldwide.
According to Newzoo, the global number of gamers in 2022 stands at a staggering 3.2 billion, encompassing nearly half of the world's population. Experts associate this with the fact that games have played a significant role in our culture, contributing to global progress for thousands of years.
Global split of players by gender
Global split of players by age
Beyond mere entertainment, games have showcased their potential to deliver numerous benefits to both individuals and communities.
Firstly, engaging in virtual worlds, whether through immersive RPGs or fast-paced action games, offers an escape from daily pressures and a chance to find solace in alternate realms. Additionally, the gaming community passionately embraces the ability of games to unite people. Multiplayer games act as a hub for social interaction, allowing players from different backgrounds and places to connect through shared experiences.
Helps me feel less stressed
Helps me feel less isolated
Helps me feel less anxious
Helps to stay connected
Can improve creativity
Can improve problem solving
Furthermore, gamers strongly advocate for the positive impact of gaming on personal growth, education and skill enhancement. In contrast to the misconception of games as mere entertainment, many of them demand strategic thinking, problem-solving, and quick decision-making.
These cognitive challenges not only keep players mentally agile but also foster valuable skills applicable in education and professional pursuits. These factors shape our vision of gaming as "intelligent entertainment", a concept that transcends amusement and emphasizes personal development.
We believe that gaming can facilitate key elements that drive positive change in individuals and society: the acquisition of valuable skills, socialization, and emotional release. We are confident that the positive influence of intelligent entertainment on individuals and society will continue to expand in the near future.