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The global games market declined in 2022, and it’s interesting to keep a check on how it’s going to respond in 2023. Ever since the decline, we saw the gaming industry dissolving its structure and remaking itself at the beginning of this year. The Video Games Market is projected to reach a revenue of US$ 384.90 billion globally in 2023.
With the gaming industry at an annual growth of 7.89% in revenue globally, it is important to understand the variables leading to the growth. Video Gaming industry insiders believe that advancements in technology like the gaming experience, Augmented reality, Virtual reality, and mixed reality with esports are some of the reasons for this two-fold growth of industry revenue.
Tech Giants like Amazon, Alphabet, and Meta keep sprinting around the gaming industry eyeing an opportunity to get a foothold in the sector and a step forward toward the next big thing “Metaverse”. But Microsoft’s ongoing acquisition of the Call of Duty creator “Activision” is a strategic move to gain market share.
Microsoft Corp.’s $69 billion takeover of Activision Blizzard Inc. won European Union approval, just weeks after the U.K.’s merger regulator delivered a shock decision to veto the gaming industry’s biggest ever deal. #Antitrust #Entertainmenthttps://t.co/b1pvjJU66H pic.twitter.com/Wcs3IN3YW4
— Mergers&Acquisitions (@TheMiddleMarket) May 15, 2023
These neat steps in the video gaming sector have helped the gaming industry to spread its influence to the corporate sector, encouraging participation, engagement, and loyalty in employee training and team-building programs using such games.
Factors Driving the growth of Video Games
The Video gaming sector is growing rapidly, and it is expected to increase continually year over year making it necessary to study the factors driving such growth.
- Increasing penetration of Internet services
- The availability of 5G Internet services was like an elephant in the room for Video Gaming Industry
- Widespread availability & accessibility of games
- Having a variety of games and their accessibility on various devices like Mobiles, Tablets, etc.
- Advancements in technology
- The technological innovations were at par in the previous year and in 2023, making it possible to drive growth.
- The ratio of women to men is at par now
- With interactivity and immersion being the latest trend and rage, women are catching up too.
Major players in the Gaming Industry
Where all other digital media markets have already had their revolutions in business models and subscription services, the Video Game sector has only just started at the seed stage. All the countries are globally targeting the gaming industry and enhancing user penetration to increase revenues.
When compared globally, the top 5 countries with the highest revenue (at present) are:
- China
- USA
- Japan
- South Korea
- UK
The United States was estimated to dominate the gaming market worldwide with $56.84 billion in global revenue but China recently surpassed it. US and China have been competing for this first spot for years now. Diving them further into regions, the top three sub-regions in terms of video game market revenue are North America, the Far East, and Western Europe.
Contribution of MENA region
The MENA region is becoming a hotbed for Mobile gaming and future innovations. The Middle East & North Africa region is the fastest-growing mobile gaming market in the world witnessing a steady rise since 2021.
🎮 The gaming industry is poised for explosive growth in 2023, driven by cross-pollination of IP, booming Asian and Middle Eastern markets, and sustained mobile gaming expansion. Esports industry diversification is long overdue. Let's game on together! 🚀🎮 pic.twitter.com/CvghW2mA1t
— hivemindcreativemarketing (@hiveminddubai) May 16, 2023
The MENA region is becoming a hotbed for Mobile gaming and future innovations. The Middle East & North Africa region is the fastest-growing mobile gaming market in the world witnessing a steady rise since 2021.
Saudi Arabia, Eqypt, and UAE amounted to around 4.8 billion in 2021, expected to rise to $3.9 billion in revenue by 2026. Saudi Arabia is the gaming powerhouse and the largest market by gaming revenue, while the UAE has the highest ARPU of the three markets.
“The surging popularity of esports in MENA, especially the gaming segment, has led the corporate sector to explore a crossover between technological capabilities and gaming trends, as businesses seek new ways to connect with consumers,” quotes Mario Pérez, chief executive officer of MENATech.
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