Newzoo projects that the number of paying gamers will reach 1.5 billion in 2024, a 5% increase from 2023, representing 43.8% of the total 3.42 billion players globally. The global video game market is expected to generate .7 billion in 2024, with a year-over-year growth of 2.1% and a compound annual growth rate (CAGR) of 3.1%, reaching .3 billion by 2027. Regional revenue forecasts indicate that the Asia-Pacific region will lead with .9 billion, followed by North America at .2 billion, Europe at .8 billion, Latin America at [openai_gpt model="gpt-4o-mini" prompt="Summarize the content and extract only the fact described in the text bellow. The summary shall NOT include a title, introduction and conclusion. Text: Newzoo has unveiled its latest insights into the global video game market for 2024, presenting a comprehensive analysis of revenue forecasts and emerging industry trends.
Key takeaways
Newzoo anticipates that the number of paying gamers will reach 1.5 billion this year, marking a 5% increase from 2023. This figure accounts for 43.8% of the total 3.42 billion players worldwide.
The global video game market is projected to generate 7.7 billion in 2024, reflecting a year-over-year growth of 2.1%. The market is expected to expand at a compound annual growth rate (CAGR) of 3.1%, reaching 3.3 billion by 2027.
In terms of regional revenue, the Asia-Pacific region will continue to lead with .9 billion (+1.5% year-over-year), followed by North America at .2 billion (+0.6%), Europe at .8 billion (+3.2%), Latin America at .1 billion (+6.2%), and the Middle East & Africa at .7 billion (+8.9%).
Newzoo's report highlights that nearly half of the total gaming revenue will be generated from the United States ( billion) and China ( billion). Interestingly, while the PC segment remains the smallest in terms of revenue, it is set to outpace both mobile and console revenues in 2024, reaching .2 billion (+4% year-over-year). This growth is attributed to enduring titles, cross-platform releases, and a relative scarcity of major console games.
Mobile gaming revenues are expected to grow by 3% year-over-year to .6 billion, whereas the console market is projected to experience a slight decline of 1%, landing at .9 billion. Analysts predict a resurgence in console revenues starting in 2025, spurred by new hardware from Nintendo and significant releases such as GTA VI.
8 video game market trends
Shift towards cross-platform games: Major players like Sony and Microsoft are increasingly exploring opportunities to expand their games across various platforms. Newzoo notes that this trend particularly benefits the PC market, as rising development costs make it challenging to achieve profitability on a single platform.
Picking the right size for single-player games: To thrive in the current landscape, larger companies may adopt a strategy focused on developing more compact games, allowing them to maximize returns and create opportunities for larger projects in the future.
Mobile platform holders are forced to make their ecosystems more open: Regulatory pressures are compelling companies like Apple to permit third-party app stores and alternative payment methods, while firms such as Microsoft and Epic Games are announcing expansions into mobile gaming.
Early Access is the ultimate form of community management: Engaging with the community and fostering trust prior to launch has become crucial for success, particularly on PC platforms where Steam's Early Access system is prevalent.
Most live service games fail to reach and retain players: Newzoo highlights that playtime is increasingly concentrated around established hits, with high user acquisition costs and low conversion rates for new titles posing significant challenges.
Market downturn creates gaps for indie and AA games: The year 2024 is poised to witness successful releases from smaller studios as AAA companies grapple with rising costs, a more established player base, and a saturated live service market.
The industry has yet to fully understand the impact of generative AI: There remains a lack of clarity regarding the risks, limitations, and potential integration of generative AI technology within game development.
UGC is key to reaching new generations of players: According to Newzoo, 94% of Gen Alpha and Gen Z consumers are engaged with video games, often interacting with the medium in diverse ways, including content creation. Understanding and catering to this audience could significantly enhance companies' player bases.
For those seeking deeper insights and data, the full report is available for review." max_tokens="3500" temperature="0.3" top_p="1.0" best_of="1" presence_penalty="0.1" frequency_penalty="frequency_penalty"].1 billion, and the Middle East & Africa at [openai_gpt model="gpt-4o-mini" prompt="Summarize the content and extract only the fact described in the text bellow. The summary shall NOT include a title, introduction and conclusion. Text: Newzoo has unveiled its latest insights into the global video game market for 2024, presenting a comprehensive analysis of revenue forecasts and emerging industry trends.
Key takeaways
Newzoo anticipates that the number of paying gamers will reach 1.5 billion this year, marking a 5% increase from 2023. This figure accounts for 43.8% of the total 3.42 billion players worldwide.
The global video game market is projected to generate 7.7 billion in 2024, reflecting a year-over-year growth of 2.1%. The market is expected to expand at a compound annual growth rate (CAGR) of 3.1%, reaching 3.3 billion by 2027.
In terms of regional revenue, the Asia-Pacific region will continue to lead with .9 billion (+1.5% year-over-year), followed by North America at .2 billion (+0.6%), Europe at .8 billion (+3.2%), Latin America at .1 billion (+6.2%), and the Middle East & Africa at .7 billion (+8.9%).
Newzoo's report highlights that nearly half of the total gaming revenue will be generated from the United States ( billion) and China ( billion). Interestingly, while the PC segment remains the smallest in terms of revenue, it is set to outpace both mobile and console revenues in 2024, reaching .2 billion (+4% year-over-year). This growth is attributed to enduring titles, cross-platform releases, and a relative scarcity of major console games.
Mobile gaming revenues are expected to grow by 3% year-over-year to .6 billion, whereas the console market is projected to experience a slight decline of 1%, landing at .9 billion. Analysts predict a resurgence in console revenues starting in 2025, spurred by new hardware from Nintendo and significant releases such as GTA VI.
8 video game market trends
Shift towards cross-platform games: Major players like Sony and Microsoft are increasingly exploring opportunities to expand their games across various platforms. Newzoo notes that this trend particularly benefits the PC market, as rising development costs make it challenging to achieve profitability on a single platform.
Picking the right size for single-player games: To thrive in the current landscape, larger companies may adopt a strategy focused on developing more compact games, allowing them to maximize returns and create opportunities for larger projects in the future.
Mobile platform holders are forced to make their ecosystems more open: Regulatory pressures are compelling companies like Apple to permit third-party app stores and alternative payment methods, while firms such as Microsoft and Epic Games are announcing expansions into mobile gaming.
Early Access is the ultimate form of community management: Engaging with the community and fostering trust prior to launch has become crucial for success, particularly on PC platforms where Steam's Early Access system is prevalent.
Most live service games fail to reach and retain players: Newzoo highlights that playtime is increasingly concentrated around established hits, with high user acquisition costs and low conversion rates for new titles posing significant challenges.
Market downturn creates gaps for indie and AA games: The year 2024 is poised to witness successful releases from smaller studios as AAA companies grapple with rising costs, a more established player base, and a saturated live service market.
The industry has yet to fully understand the impact of generative AI: There remains a lack of clarity regarding the risks, limitations, and potential integration of generative AI technology within game development.
UGC is key to reaching new generations of players: According to Newzoo, 94% of Gen Alpha and Gen Z consumers are engaged with video games, often interacting with the medium in diverse ways, including content creation. Understanding and catering to this audience could significantly enhance companies' player bases.
For those seeking deeper insights and data, the full report is available for review." max_tokens="3500" temperature="0.3" top_p="1.0" best_of="1" presence_penalty="0.1" frequency_penalty="frequency_penalty"].7 billion. The United States and China will account for nearly half of the total gaming revenue. The PC gaming segment is projected to outpace mobile and console revenues in 2024, reaching .2 billion, while mobile gaming revenues are expected to grow by 3% to .6 billion, and console revenues are projected to decline by 1% to .9 billion. Key trends include a shift towards cross-platform games, the need for compact single-player games, increased openness in mobile ecosystems, the importance of community engagement through Early Access, challenges faced by live service games, opportunities for indie and AA games amid market downturns, uncertainty regarding generative AI's impact, and the significance of user-generated content in attracting younger players.
