Global games market will shrink 4% year-on-year to $184.4 billion in 2022, according to video games and gamer statistics provider Newzoo.
The company previously said it was expecting the market to grow 2.1% Y/Y to $196.8 billion this year, but has revised its projections due to several reasons such as 2022 being a ‘’corrective year’’ following the lockdown period.
‘’Looking back at our pre-pandemic forecast for the games market (from January 2020), revenues in 2020 and 2021 were much higher than we anticipated back then, while 2022 is slightly lower. While this revised forecast may seem like a setback for the games market, we note that the sum of revenues generated from 2020 to 2022 is almost $43 billion higher than we originally forecast pre-pandemic,’’ said Tom Wijman, Newzoo’s Head of Reports & Forecasting.
According to the updated estimations, while downloaded / boxed PC games revenue will grow 1.8% YoY to $38.2 billion in 2022, browser PC games sales will fall 16.7% to $2.3 billion.
In addition, console games revenue is expected to drop 4.2% to $51.8 billion while mobile games will generate $92.2 billion, down 6.4% YoY.
‘’Our outlook for the mobile games market changed significantly compared to our previous forecast,’’ said Wijman.‘’While we anticipated that the removal of IDFA and pressure on people’s disposable income would dampen spending on mobile games, the first quarter of 2022 was still relatively strong. However, spending in the second quarter was significantly lower than last year’s, and signs show that it did not recover in the third quarter.’’
Meanwhile, 49% of this year’s total consumer spending will come from the United States ($45bn) and China ($45.8bn), Newzoo said. The Asia Pacific region will account for $87.9 billion (-5.6% YoY), North America will account for $48.8 billion (-5.1%), Latin America will generate $8.4 billion (+3.4%), Europe will drive $32.9 billion (-3.5%) and Middle East & Africa markets are expected to drive $6.8 billion (+6.6%).
Although Newzoo has lowered its forecast for 2022, it still expects the game market to continue growing and reach $211.2 billion by 2025.