Newzoo; 3 billion games 2023.
The number of gamers around the globe will top 3 billion by 2023, according to market researcher Newzoo. It may sound crazy to expect 39% of all humans to be playing games, but Newzoo says we already have 2.69 billion players thanks to mobile devices.
By the end of this year, we’ll have 2.7 billion gamers worldwide, with 2.5 billion playing on mobile, 1.3 billion playing on PC, and 800 million on console. (That adds up to more than 2.7 billion because people play on multiple devices).
Growth markets are contributing more to this player increase (compared to more-mature markets). Growing online population due to improved (mobile) internet infrastructure, affordable (smart) phones, and a growing middle class are key drivers for player growth.
The games market is continuing to move away from boxed revenues. While the move from physical to digital distribution is definitely part of the equation, the increasing dominance of in-game revenues will shrink even full-game digital revenues in the coming years.
In the coming years, Newzoo expects in-game-transaction revenues to increase even further in popularity on console, especially as publishers and developers will look for alternative revenue streams when subscription revenues replace full games sales for many of them.
The market for premium (paid) games on mobile is growing through subscription services like Apple Arcade, digital board games, and ports from other platforms — but that growth is marginalized by the growth of free-to-play games on mobile.
In fact, 98% of all mobile game revenues were generated through in-game transactions. Newzoo forecasts this to edge ever closer to 100% as the years progress. Nevertheless, paid games on mobile will always have a place.
Subscriptions will account for 13% of console revenues this year.
Subscription revenues depend heavily on the availability of certain services in specific markets, which causes a significant difference in revenue share per country. Services are usually available first in regions with the biggest spenders on console, which is why the share of subscription service revenues is highest in more-mature markets.
Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry.
With over 20+ years of experience, well known publishers, AAA+ game developers, serial gaming entrepreneurs and management teams of gaming corporations consult him on matters that behold financial, technical, operational, strategic and commercial.
I am observing and overseeing several boards of gaming companies. My trademark is to listen, strategize and give feedback to the stakeholders involved. I also represent management/founders towards shareholders and vice versa.