data.ai & IDC: Mobile Gaming Market to reach $108B in 2023
Great annual report from data.ai and IDC covering the whole gaming industry in 2023.
Key Figures
The total gaming market will reach $194 billion by the end of the year.
Mobile gaming will account for 56% of the total gaming revenue for the year, with consoles at 22%, and PCs at 21%. Portable systems like the Nintendo Switch Lite and Steam Deck make up the remaining 1%.
The mobile gaming market is expected to decline by the end of 2023, but analysts from data.ai and IDC believe that a new growth phase will follow in the coming year.
The console gaming market is projected to grow by 3% to $43 billion in 2023, driven by increased sales of the PS5 and Xbox Series.
The PC gaming market is expected to grow by 4% to $40 billion, largely due to subscription revenue growth.
However, the portable console segment is expected to plummet by 20%, primarily due to reduced demand for the Nintendo Switch Lite.
In the APAC region, there is growth in the mobile, console, and PC segments, making it the only market showing growth.
Growing Genres
Racing simulators (+0.3 percentage points), sports simulators (+0.2 percentage points), and arcade racers (+0.3 percentage points) have seen increased downloads in the first half of 2023.
Team Battle RPGs (+0.7 percentage points), thanks to Honkai: Star Rail, as well as Match 3 (+0.9 percentage points) and MOBA (+0.7 percentage points), have seen revenue growth.
Cloud Gaming
In 2023, mobile devices will make up 26% of the cloud gaming market, up from 19% in 2019.
The total revenue of cloud gaming services is projected to reach $3.8 billion in 2023, with a growth rate of over 50% compared to 2022.
The Monthly Active Users (MAU) for cloud gaming services is expected to reach 60 million this year.
Portable Consoles
Nintendo Switch Lite shipments worldwide exceeded 21 million in the first quarter of 2023.
Steam Deck shipments in the same quarter reached 2 million devices.
55% of Nintendo Switch Lite owners are female, while the majority of Steam Deck owners are male (73%). 48% of Nintendo Switch owners are over 35 years old, compared to 83% of Steam Deck owners.
Top Mobile Games of 2023
data.ai highlights Monopoly GO, Honkai: Star Rail, Royal Match, and FIFA Soccer as the top mobile games of 2023.
Mobile Advertising Trends
Match-3 games (66.7%), casino games (66.6%), and board games (61.2%) have the highest percentage of paid installations.
Video advertising is the most popular ad format, with 79% of ad creatives in action games being Playable.
Users in the United States, in general, have become more negative towards advertising, with a decrease in satisfaction with all advertising formats.