Games market research group Newzoo has published its latest report which forecasts a year-on-year decline of 4.3% for the global games market in 2022, following two years of "exceptional" growth during the COVID-19 pandemic.
In the report (thanks, GamesIndustryBiz), the firm estimates that the entire video game market will generate $184.4 billion in 2022, a reduction on the $196.8 billion forecast Newzoo made earlier in the year.
This figure includes all branches of gaming (PC, browser, mobile, consoles), and the console gaming sector specifically is looking at a 4.2% decline. A "slow year" in release schedule terms is given as one contributing factor, alongside the current economic climate and the explosive pandemic-influenced growth of 2020/21.
Despite the lower-than-expected forecast, global revenue is still tracking higher than pre-pandemic times, with Newzoo labelling 2022 a "corrective year" following the unprecedented lockdown growth when people turned more than ever to gaming. "Our long-term outlook for the games market remains positive," the report states, predicting 2022 to be the only corrective year before growth returns in 2023 and the numbers go up once more.
Despite this minor downturn — and let's not forget that $184.4 billion ain't exactly bad — the firm ends things on an optimistic note, calling the future "bright" and forecasting growth going from $179.1 billion in 2020 to a whopping $211.2 billion by 2025.
So yes, video games are doing all right and will more than likely survive this corrective blip on the spreadsheet. Numbers going up will almost certainly resume next year. Carry on!
[source newzoo.com, via gamesindustry.biz]
Comments 28
honestly the size of the mobile game scene to me is kinda sad. The sheer ammount of trash and predatory practices is insane, and seeing this reminds me of how effective those are at making money
I will never support mobile games.
Handphone is not supposed for gaming.
Just only console and handheld games with physical media for me.
#letsgetphysical 🤟
#letsplayconsoles 👍
#letsplayhandhelds ✌
@Bluelink45 Games like Genshin Impact and Pokemon Go actually opened my eyes to mobile gaming. It's still not my favorite way of playing but not all mobile games are bad and many actually can be fun. Though the vast majority is predatory af and that needs to change...
Well that's it then. Time for another gaming crash. Nintendo will be going out of business soon. All is lost!
Hail Sony! 😉
With the expected global recession, i can believe it. I can’t imagine the audience will go anywhere, but it will certainly recontextualize how much we spend, even if its 1 less retail game we buy per year, or thinking twice about wanting the digital deluxe edition. I think we’ll see more people going to their back-catalogue, as I think the general conception is that we all have a collection of games we have bought as far back as 10 years ago that we need to go back to finish. That will be more appealing when we’re getting squeezed for more and earning less as a result.
@Truegamer79 God of War Ragnarok will fix this.
What's interesting from my point of view, as one who recently got a Steam Deck, is that PC gaming is on the up (and it's actually quite a lot so when you consider that console, mobile and browser gaming are all down quite a lot).
It isn't that surprising though; Sony have started to port their exclusives to PC quite a lot (and they only seem to be accelerating the effort), Microsoft just want to have their games on so many platforms as possible (there's even Game Pass on PC).
Steam Deck probably also contributes somewhat to the growth in PC gaming (not that much though.. at least not yet imo).
It will be interesting to see what Nintendo's answer to this will be; will they (plus Microsoft of course) start to allow Xbox/PC games to ported to/emulated on the Switch's successor?
It's not a God given fact that it will a be success after all (although Nintendo do have some aces up their sleeve of course - like a 60 fps version of BotW's successor probably).
But will it be enough? you could ask yourself.
Nobody will be buying new games because Elden Ring.
@JudaiMasters Heck, unless Capcom decides to do something about it, you won't be able to buy Phoenix Wright Dual Destinies or Spirit of Justice anywhere else after the 3DS eShop closes. Those are some good games on mobile, but as far as mobile games go, any gambling mechanics should be straight up removed to retain an E rating, and more games should be paid for upfront rather than through sleazy in-game purchase tactics.
Stop raising the price of full games and maybe it won't decline. I could understand physical copy but digital versions had no reason to go full price. Cloud versions shouldn't even need to be full price either, it just needs to be available via subscription.
Insane that half is trash mobile games.
Anyway. a decline that is less of a % than most countries current yearly inflation is fine. We're gonna be fine.
A "slow year" in release schedule terms is given as one contributing factor
Maybe for you but not for me.
My backlog has grown year on year and I can't see it slowing down any time soon.
My forecast is for me to keep buying games knowing that I won't be getting to them until a few months later.
😜
@Serpenterror That would require stopping inflation, first. If games prices don’t go up but inflation continues, what do you think will happen?
So next year, the industry will make a ton of money instead of a shed ton of money.
Considering it has been impossible to get the new consoles, first party releases have been down across the board, and ( at least in the US) the fact it is already a recession.
Yeah this isn’t very surprising.
@WiltonRoots
I believe it will! I haven't even touched it yet. Still replaying the awesome original then I'll fire up ragnarok!
@Anti-Matter what an absolute legend.
The whole industry is in a bottleneck at the moment. New consoles cost more and people are finding it hard to find the ruddy things, coupled with the need to produce games twice as big and twice as detailed and twice as expensive that will thin the herd to a few triple A titles and a bunch of indies.
Nintendo seems to be the only company with a solid release schedule recently, so you can see why they don’t really want to move up in the power wars.
@JudaiMasters That what sucks about Mobil games tho, the good ones get bundled up with all the fifth, with those game are pretty fair and just fun to play, unlike the other Mobil games that want to charge you an arm and a leg just to play it a number times a day.
I’m an old fart and I’ve been playing games since the 70s. I do play mobile games too but I’ve never spent a penny on them because they are never mine. That’s what irritates me so much about people pushing for all digital gaming. If it’s digital it’s only a rental. You never own it. And game companies make a fortune on this. It’s the apex of greed. I can still play the games I bought decades ago because they are MINE. You’ll never be able to say that with these digital games. It will eventually crash the entire industry.
Kids these days think all games should be free, otherwise it's not worth it. So of course most of it's mobile...
Ugh, very rarely do mobile games keep me, but eventually I'll lose interest even those. I'd rather pay for a higher quality game that isn't riddled with micro-transactions and ads.
@blindsquarel this is due to the semi condutor chips crisis
the real question is will Nintendo raise the price of it games to $70/90 or keep it $60 when they launch the Switch sucessor?
@Giancarlothomaz Cartridge games had always been priced more expensive than disc games so it's likely it could rise but there's no reason a disc game should be over $50 especially with PS5 and Xbox Series X where a lot of those disc games only had 30% of the game on the disc or a launcher on a disc while the rest required a download. Code in a case are even worst.
The size of the mobile market shouldn't be that surprising globally. It'd be interesting to see a breakdown of the revenue for that by region/country - I expect in a good few places a mobile device will be the only access they have to gaming realistically so it's bound to take up a chunk of market share.
Not surprising that the industry will take a downturn. I'd expect a good few 'luxury' past times will be hit as well as the recovery from COVID plus dealing with the fallout of Russia/Ukraine continues.
Also I expect prices of games will rise still aside from inflation. The focus of no cruch/more money for devs and VAs getting more money will have an end up having significant impact on the cost to create games for the bigger companies and ultimately that's gonna get passed onto the end user.
@EaglyTheKawaiiShika e @Serpenterror, the only game we know from Nintendo that was expensive to make was Legend of Zelda Breath of the Wild with a $100 milion dolars budget, and now with PS5 e Xbox Series X/S been more powerful hardware games been developed on then are more expensive then the previous generation, around the $100/300 milions dolars mark
@shgamer It will be interesting to see what Nintendo's answer to this will be; will they (plus Microsoft of course) start to allow Xbox/PC games to ported to/emulated on the Switch's successor?
That's the death nail on Nintendo grave marker when this happens. Nintendo Switch IP exists for Nintendo.
@shgamer It's not a God given fact that it will a be success after all (although Nintendo do have some aces up their sleeve of course - like a 60 fps version of BotW's successor probably).
And where did you get this opinionated fact - it's clearly known by Nvidia leaks there is a upcoming Switch that will be released you don't any more leaker then this. OLED can only go so far.
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