According to Newzoo, games and esports analytics and market research firm, games market will decline by 4.3% to $184.4 billion in 2022 while long-term outlook remains positive.
The research compares pre-pandemic forecasts to actual revenues in 2020 and 2021. Data shows that sum of the revenues generated from 2020 to 2022 is almost $43 billion higher than what the company had initially forecast pre-pandemic. It was estimated that the market would reach $196.8 billion in 2022, a new forecast suggests $184.4 billion. The company suggests 2022 as a “corrective year” after two years of unexpected growth due to the COVID-19 pandemic.
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According to the forecast, the PC games market will generate $40.5 billion in 2022, up +0.5% year on year. Newzoo said, “Our outlook for the mobile games market changed significantly compared to our previous forecast. While we anticipated that the removal of IDFA and pressure on people’s disposable income would dampen spending on mobile games, the first quarter of 2022 was still relatively strong.” Research also suggests the mobile games market generate $92.2 billion in 2022, down by 6.4% year on year.
Research shows Asia-Pacific will remain the biggest region by revenues by a massive margin, despite the performance of its biggest markets. It will generate $87.9 billion in 2022, a year-on-year decline of 5.6% and represent 48% of the global market. Revenues will also decline in North America (5.1%) and Europe (3.5%) year on year.
Newzoo forecasts that console gaming will grow rapidly in coming years and expects a new Nintendo device somewhere around 2024-2025. According to Newzoo, the games market will grow from $179.1 billion in 2020 to $211.2 billion by 2025.