Mobile gaming reigns supreme: 72% of 2023 game revenues originated from mobile platforms

In its latest edition of the State of Play industry report for winter 2024, Xsolla, a prominent video games commerce company, has unveiled key insights that shed light on the dynamic landscape of the gaming industry. The report not only captures the current trends but also forecasts future shifts, surprises, and emerging influences that are set to shape the trajectory of the gaming world.

One notable revelation from Xsolla’s report is the overwhelming dominance of mobile gaming in the revenue landscape. According to the findings, an astounding 72% of total game revenue in 2023 was attributed to mobile platforms. This significant share underscores the growing impact of mobile gaming on the industry’s financial landscape.

The report also delves into the broader trends that have defined the gaming industry in recent years. Noteworthy highlights include a substantial increase in cloud gaming, the rising influence of women in the gaming space, and the continued expansion of mobile gaming’s market share.

Xsolla’s comprehensive analysis further reveals a substantial rise in total sales and user count, showing a 44% increase in sales and a 22% growth in user numbers when comparing the periods of 2020-21 and 2022-23. This indicates a sustained growth trend, albeit at a slightly reduced rate, reflecting the industry’s resilience during a transitional period.

Projections for the gaming industry’s future growth are equally promising, with Xsolla estimating a 9.4% growth rate for 2023 and anticipating an annual rate of 8.7% between 2024 and 2027. This trajectory could propel the industry to a staggering $363 billion by 2027, surpassing the growth rate of the broader entertainment sector, which is expected to see a 2.8% year-on-year increase.

Drawing parallels between gaming and e-commerce, the report notes the similarities in their growth trajectories, particularly during the global pandemic. Both industries have thrived by embracing technology, leading to a surge in digital payments. While e-commerce has revolutionized transactional convenience, mobile gaming has played a crucial role, with in-app payment models contributing significantly to the overall revenue.

Looking ahead, the report envisions the next generation of gaming consoles, such as the anticipated successor to the Nintendo Switch, playing an instrumental role in driving market expansion. Despite the evolving privacy challenges faced by developers, mobile gaming is expected to remain a pivotal force for growth. Additionally, the integration of AI technology is anticipated to enhance gameplay experiences and foster innovation within the industry.

Xsolla President David Stelzer expressed confidence in the industry’s future, stating, “Reflecting on our journey to the Winter 2024 edition of ‘The Xsolla Report: The State of Play,’ I’m brimming with pride and excitement. The gaming world, always a hub of dynamic innovation, has outdone itself, and our shared efforts continue to propel this industry forward.”

Written by Sophie Blake


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