Discover the Gaming Platforms and Genres with the Highest User Spending
We have recently added revenue data for console and PC games in the US to Newzoo Expert, and we are sharing key findings focusing on average revenue per paying user (ARPPU) and average revenue per user (ARPU) for PlayStation, Xbox, and PC games. As outlined in Newzoo's Global Games Market Report, game companies have diversified their revenue streams through various monetization strategies, including full-priced premium games, DLC, free-to-play monetization, and subscriptions. Our US revenue data includes metrics such as total revenues, ARPU, and ARPPU, and also breaks down revenue streams like DLC, microtransactions, and subscriptions by game, platform, and genre. This data is helping game developers evaluate their game's performance, forecast game launches, and refine their monetization strategies. To begin with, let's clarify the meaning of ARPU and ARPPU in gaming: ARPU is the average in-game spend per active user over a specified time period, while ARPPU is the average in-game spend per paying user over the same period. Our revenue data for the first nine months of 2022 shows that monthly ARPPU per title is relatively consistent across Xbox, PlayStation, and PC, hovering around $20. This figure only accounts for in-game revenue and excludes premium game revenue. Notably, PlayStation's ARPPU is slightly higher during this period, partly due to top-grossing titles including paid sports games with live-service elements, a major single-player release, and a free-to-play game known for its successful cosmetic and battle pass sales. For an exact list of top-grossing games by platform, please contact us. Additionally, PlayStation has seen revenue boosts from single-player first-party games like Horizon Forbidden West and Gran Turismo 7. In contrast, PC gamers exhibit higher ARPU, suggesting a larger proportion of non-spenders on console platforms. This is supported by Newzoo's Consumer Insights data, which indicates that around 23% of console players spent nothing on games in the past six months, compared to 18% of PC gamers. Furthermore, console users tend to be younger and less likely to spend on games. Newzoo's Gamer Segmentation reveals that PC gamers in the US are more likely to be 'Ultimate Gamers,' who spend significantly on games and engage deeply with gaming, whereas console players, especially on PlayStation, are more likely to be 'Mainstream Gamers,' who typically do not spend as much on games. Although PC has more big spenders, it also has more non-spenders and slightly fewer minor spenders. Our Newzoo MAU data for the US shows that top-grossing games across PC and consoles often leverage free-to-play monetization, including titles like Fortnite, Call of Duty Warzone, and Roblox, which generate revenue through in-game purchases and battle passes. Even premium games like NBA 2K22 and GTA V incorporate free-to-play monetization methods. High engagement and robust monetization typically lead to stable revenues, as reflected in our revenue data. Many game publishers understand this but lack deeper insights into their competitors' strategies, particularly for live-service games. Examining ARPPU across genres reveals interesting trends. For instance, battle royale games have a higher ARPPU due to their reliance on in-game monetization, with most revenues coming from in-game currency, cosmetics, and subscriptions. In contrast, adventure games have a lower ARPPU, with most revenues generated from premium sales. Sports titles, which balance premium and in-game revenues, tend to perform well, as seen in franchises like FIFA and NBA 2K. Publishers are continually refining their monetization strategies, combining full-priced premium revenues with DLC, free-to-play monetization, and subscriptions. The data discussed in this article is just a fraction of the insights available in Newzoo Expert, which also includes player engagement data such as MAUs and DAUs for 37 game markets worldwide. To learn more, please reach out to us.