Unpacking the South African Gaming Industry by the Numbers

Among the diverse markets across the African continent, South Africa stands out as a prominent figure, as highlighted in discussions with the organizers of Africa Games Week, prompting a week-long editorial focus on its gaming industry. To understand the industry's landscape, it's essential to first examine the broader gaming scene, including audience size and revenue generation, for which market research firm Newzoo provided insights. Additionally, a 2021 report by Tshimologong Wits University was consulted to gain a deeper understanding of the developer landscape. In 2023, South Africa's video game spending reached $266 million, according to Newzoo, accounting for 0.14% of the global $184 billion spent on video games that year. Notably, the South African market has been growing at a Compound Annual Growth Rate (CAGR) of 4.7% since 2020 and is projected to continue growing to $333 million by 2026, representing a CAGR of 7.8%. Mobile gaming dominated the market in 2023, constituting 91% of the revenue, with PC games slightly outpacing console games at 5% versus 4% of total spending. The average gamer in South Africa spent approximately $25.50 per year, primarily on in-game microtransactions due to the popularity of mobile titles. Newzoo identified the most popular console and PC games in 2023 by monthly active users as Fortnite, The Sims 4, Call of Duty: Modern Warfare 3, Minecraft, and Roblox. The total number of gamers in South Africa was 26.5 million, representing 44% of the population, with a gender split of 53% men and 46% women. The majority of players, 85%, had played a mobile game in the past six months, while only 15% had played a console game. The gaming population is predominantly aged between 14 and 28, accounting for almost half (47.6%) of gamers, followed by the 29 to 42 age group at 30.8%. Children under 10 years old make up 12.1% of the gaming population. Watching livestreamed gaming content, particularly on platforms like Twitch, is increasingly popular, with 64% of the gaming population tuning in regularly, and this trend is more prevalent among men, who account for 57% of viewers, compared to women at 42%. Newzoo noted that viewership heavily favors the 14 to 28 age group, which accounts for 36% of the livestream audience, and the 10 to 13 age group, which accounts for 33%. The gaming audience is expected to grow, with Newzoo forecasting 30.2 million players by 2026, still representing 44% of the South African population. An extensive study by Tshimologong Wits University explored the South African game development landscape in 2021, involving 168 industry participants. The study estimated there are 60 active game studios in South Africa, with the majority being microenterprises of fewer than five employees. Only six studios employed more than ten people, and these larger studios accounted for the majority of the revenue generated by South African developers. The largest studio visited by Tshimologong Wits University had 36 employees. While mobile games are favored by players, larger studios focus on PC and console games to generate most of their revenue. 55% of South African studios develop games for PC, compared to 33% for mobile. The study found that no South African game company was built solely around mobile development or generated most of its revenue from apps. 52% of studios created their own intellectual property (IP), while 12% only offered services to other game companies, and 36% did a mix of both. Unity was the most popular game engine among South African developers, used by over 90% of studios. Cape Town and Johannesburg were home to the most studios, with the Gauteng province hosting 42.1% of the South African game companies and the Western Cape province hosting 37.9%. The workforce distribution was similar, with 50.5% of game professionals living in the Western Cape and 37.4% in Gauteng. Interestingly, 14.1% of respondents worked for companies based outside of South Africa, mostly living in the Western Cape. The study noted a dramatic increase in local developers finding employment at international companies due to the COVID-19 pandemic and the shift to working from home. 21% of professionals in the South African game industry had over ten years of experience, indicating the industry's maturation. 25% had between five and ten years of experience, while 20% had worked three to five years, and another 20% had worked one to three years, showing the industry's relative newness. Two-thirds of respondents were 35 years old or younger, with the largest age bracket being 26 to 30 years old at 25%. The study highlighted a stark contrast between the diversity of the game workforce and the general population. While only 7.3% of South Africa's population is white, 82% of the game professionals in the study were white. Black people, who make up 81.4% of the population, represented only 6% of the study's respondents, a figure described as distressingly low. The South African game industry's diversity was a recurring topic in interviews, with leaders noting an active understanding and desire for change, with the industry incentivizing people of color to gain experience and leadership positions. The study also looked at the upbringing of game professionals, noting a disproportionate amount grew up in upper-middle-class to upper-class environments. 83% of game professionals identified as male, compared to 10% female, and 7% non-binary. The study found a slight improvement in the number of women and non-white people employed in the industry compared to historical data, but most microenterprises consisted only of white males. 24% of South Africa's game professionals identified as LGBTQIA2S+, significantly higher than the national average. More than half of the respondents (57%) were employed in development and programming, although many fulfilled multiple roles due to the small size of most studios. The most common roles outside of programming and development were art, design, business operations, and project management. Only half of the respondents (49.5%) were full-time permanent employees, with 14.1% on fixed-term contracts, 10.1% freelancers, and 25.3% studio owners or directors. For hobbyists, 69% expressed a desire to work in the game industry more permanently but faced barriers such as better pay in other industries, insufficient jobs, and inadequate skills. Throughout the week, interviews with various studios, including Six Peaks, Nyamakop, Sea Monster, Free Lives, Studio Bolland, and Annapurna-owned 24 Bit Games, will delve into topics such as the challenges developers face, the debate around support for game businesses, and factors that may drive the market's future growth.