Xsolla, a video game commerce company, has recently published its State of Play industry report for the winter of 2024. The report highlights the latest trends, forecasts, shifts, and surprises within the industry, providing valuable insights for businesses.
One of the key trends identified in the report is the growing prevalence of cloud gaming, as well as the increasing influence of women in the industry. Additionally, the report emphasizes the substantial share of mobile in annual gaming revenues, citing that mobile accounted for a significant 72% of game revenue in 2023.
Increased Revenues
According to Xsolla’s findings, there has been a notable increase in total sales and user count, up by 44% and 22% respectively when comparing 2020-21 with 2022-23. While the growth rate has reduced, the industry continues to display resilience during this transitional period.
The report projects a 9.4% growth rate for the 2023 revenue, and forecasts an annual rate of 8.7% from 2024 to 2027, with the industry expected to reach $363 billion by 2027. Notably, the gaming sector’s projected growth rate exceeds that of the broader entertainment sector, which is anticipated to grow by 2.8% year-on-year.
Furthermore, the report draws parallels between gaming and e-commerce, as both industries have experienced similar growth trends during the global pandemic. Both sectors have embraced technology and witnessed an increase in digital payments.
Advancements in e-commerce, such as the use of digital wallets and mobile payment apps, have transformed transactional convenience. Similarly, mobile games have leveraged in-app payment models for years and continue to thrive. In 2023, mobile devices accounted for 60% of e-commerce retail sales, demonstrating the increasing prevalence of mobile-based transactions.
Future Outlook
Xsolla looks ahead to the potential impact of new gaming IP on broader culture, citing the success of films like The Super Mario Bros Movie and consoles like the Nintendo Switch. The report anticipates that the next generation of consoles, including the successor to the Nintendo Switch, will play a significant role in driving the expansion of the games market.
Moreover, mobile will remain a pivotal element in the industry’s growth, despite evolving privacy challenges faced by developers. Additionally, advancements in AI technology are expected to enhance gameplay experiences and drive innovation within the sector.
David Stelzer, President of Xsolla, expressed his confidence in the industry’s future, emphasizing the dynamic innovation that continues to propel the gaming world forward.
Xsolla’s full report includes further predictions on the potential number of gamers and more. The role of AI in gaming was also a major topic at PGC London, highlighting its importance as a tool to “compete with the cyborgs”.
