Global Gaming Market to Experience 4.3% Decline in 2022, According to Newzoo

In summary: The global gaming market is projected to reach $184.4 billion in 2022, marking a 4.3% year-over-year decline - the first decrease in Newzoo's market tracking history. This revised forecast is significantly lower than the initial $196.8 billion estimate made earlier this year. Newzoo attributes the decline to factors including a slower-than-expected console market performance and a corrective period following two years of pandemic-driven growth. Although the forecast is higher than pre-pandemic predictions, Newzoo emphasizes that 2022 will be an isolated corrective year. The company remains optimistic about the long-term outlook, citing a $43 billion increase in revenue from 2020 to 2022 compared to initial pre-pandemic forecasts. The PC gaming market is expected to reach $40.5 billion, representing a 0.5% increase, while the mobile market is anticipated to decline by 6.4% to $92.2 billion. In contrast, the console gaming market is forecasted to generate $51.8 billion, a 4.2% drop. Virtual reality is the only sector expected to experience growth, with revenues predicted to reach $1.8 billion, a 26.4% increase. Looking ahead, Newzoo estimates the gaming market will reach $211.2 billion by 2025, with a compound annual growth rate of 3.4%, driven by promising prospects for console gaming.