Newzoo Adjusts 2023 Gaming Market Value Projection to $184 Billion

Newzoo has revised its 2023 gaming market forecast downward to $184 billion, representing a 0.6% year-over-year increase, as stated in its most recent report. The company had previously estimated a 2.6% increase to $187.7 billion for 2023. Last year, the market experienced a 4.3% decline as the pandemic-driven surge came to an end. Newzoo attributes the revised forecast to challenges in the mobile market, citing a 'challenging privacy landscape' that is expected to limit growth until 2026, including potential implications from the Epic vs Google antitrust trial. The mobile segment is now projected to decline by 1.6% to $90.4 billion, down from the previously estimated $92.6 billion. Nevertheless, mobile remains the largest segment of the industry in terms of consumer spending, accounting for nearly half of the total market. The console sector is expected to remain the second-largest sector, generating $53.2 billion, which represents a 1.9% year-over-year increase. This is lower than the previously estimated $56.1 billion for 2023, with the decline attributed to decreased 'engagement and monetisation' for live service games such as Fortnite and Rocket League. However, the release of delayed titles from 2020 to 2022, including The Legend of Zelda: Tears of the Kingdom and Final Fantasy 16 in the first half of the year, and Spider-Man 2, Starfield, and Super Mario Bros Wonder in the second half, helped boost revenue. Newzoo predicts that the PC segment will experience the greatest revenue growth this year, with a forecasted 3.9% year-over-year increase to $40.4 billion, driven by the release of titles such as Hogwarts Legacy and Diablo 4. The Asia Pacific region is expected to lead the global market, accounting for 46% of global revenues at $84.1 billion, despite a 0.8% year-over-year decline. This is lower than the previously forecasted 1.2% growth in revenue to $85.5 billion. Newzoo attributes this decline to the Chinese market's 0.7% year-over-year revenue growth, which is bringing down the region's average, as well as the 'ripple effect of previous freezes and slow licensing' in China's gaming market. The end of NetEase and Activision Blizzard's partnership last year also contributed to this decline. Newzoo forecasts that revenues will grow 1.7% in North America to $50.6 billion, while Europe is expected to experience 0.8% growth, reaching $33.6 billion. Looking ahead, Newzoo predicts that the global gaming market will generate revenues of $205.7 billion by 2026, driven by factors such as the current console generation and mobile developers adapting to the new privacy landscape.