The overall gaming software market retains its strength in 2022, recording total revenues of $174 billion with YoY growth of 2% on 2021’s figure. Expansion falls amid challenging external conditions plus a 1.8% decline in the overall mobile market, the value of which now lands at $85 billion. These figures are sourced from a brand new report by Futuresource Consulting, which breaks down the global outlook for gaming software.
“For the first time ever we’re seeing a dip in the overall mobile market,” says Maxym Dmytriyev, gaming analyst at Futuresource Consulting. “Economising during the current economic downturn is nothing new, but cutting down on hyper-casual and casual in-game spending is a novel behaviour for consumers.”
The impact is better seen in DLC decline on smartphones of 1.8% which historically has been a consistent income stream of at least 10% YoY.
“Despite the segment’s decline, tablets remain an area of strength for the mobile market,” says Dmytriyev. “The consumer audience is mainly to thank for this, with most spending from this segment stemming from the gamers’ parents. Tellingly, children aren’t typically selective between playing more substantial games over hypercasual ones.”
In the thick of these changes, gaming companies continue to consolidate themselves. The Microsoft Activision-blizzard deal is a key example, which promises the company a firm foothold in the mobile gaming market and 1st party releases.
“The new generation of consoles, including the PS5 and XBOX X/S, are stimulating lots of activity for the market,” says Dmytriyev. “This new generation grew in 2022 amid improving hardware sales performances and supply chains. Overall, consoles accounted for 18% of the global software market in 2022.”
A string of critically acclaimed titles, like Elden Ring, has also helped boost activity.
“Many of these releases have been a commercial success story, priming consoles to be the fastest-growing platform as the new generation begins to cement its consumer base.”
“The Switch has stood the test of time with 2022 software spend on the device mostly maintaining its $13.9 billion total from the previous year,” says Dmytriyev. “The console is demonstrating remarkable tenacity despite its increasingly outdated hardware.”
Its success can also be attributed to Nintendo’s release of the OLED version, offering consumers a larger, brighter display and enhanced audio. Until a new contender for the Switch is announced, console revenue growth is expected to outstrip handheld.
“A healthy supply of consoles and the anticipation of new titles has bolstered the console and handheld software market. Futuresource estimates the market grew by 7% in 2022 to reach $45 billion."
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