Mobile is still the most significant opportunity for games despite softening market

As mobile continues to democratize gaming, the report reveals new growth areas and provides insights into the most inclusive gaming cohort yet.
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Mobile data and analytics platform data.ai released the Gaming Spotlight 2023 report in partnership with IDC. Powered by data.ai’s Game IQ taxonomy, the report reveals that despite a softening in direct consumer gaming spending overall, mobile is still the largest market opportunity for games.

The report reveals that while mobile gaming is expected to see a slight decrease in spend (-2% year-over-year), the platform is still set to surpass $108 billion worldwide in 2023 — maintaining its lead of 2.7x over PC/Mac, cementing mobile as a critical driver for growth in the industry.

The report also found that home console and PC/Mac game spending should increase by 3% (to $43 billion) and 4% (to $40 billion) worldwide, respectively, in 2023 versus 2022. Handheld console game spending is on track to decline 20% this year to less than $3 billion.

“Mobile continues to level the playing field for gaming. Now more than ever, publishers can target consumers in niche areas, and many markets are primed for growth. The ‘new gamer’ is one of the most diverse and inclusive cohorts yet. Especially in a market that’s slowed by headwinds, having the right data is critical to staying ahead in this fast-changing landscape in order to streamline acquisition and optimize monetization opportunities,” said Lexi Sydow, Head of Insights, data.ai.

The report also revealed new opportunities for publishers as mobile continues to democratize gaming:  

  • APAC saw the most significant growth in market share for global consumer spend across Mobile, PC, and Mac gaming: South Korea led APAC growth in Q1 2023, while Brazil, Turkey, and Mexico led growth outside of Western Europe, North America and Asia Pacific. North America (driven by the US) and Western Europe comprised around half of mobile gaming spend in Q1 2023. 
  • Cloud-streamed gaming (CSG) is making inroads on mobile: Across all platforms, global consumer spending on CSG services should reach $3.8 billion in 2023, up over 50% year-over-year.
  • Mobile games that defined H1 2023 were ranked in the top 10% for their Mobile Performance Scores (MPS): Monopoly GO (MPS: 99), Honkai: Star Rail (93), Royal Match (95) and FIFA Soccer (96) all saw success in H1 2023, signaling that publishers who capitalize on strong IP, market momentum and in-game events can succeed in a down market. 
  • Genre preferences were varied on mobile: Eight distinct subgenres made up the top 10 grossing games on mobile, proof of mobile’s increasing acceptance as a primary gaming platform as well as its ability to capture new audiences. The breakout genres included Driving (Simulation), Team Battle (RPG), and Party Royale (Party). 
  • Paid user acquisition: Match (45%), Casino (44%), and Tabletop games (38%) generated the largest share of downloads from paid channels in the US in 1Q 2023, marking competitive user acquisition.

The full Gaming Spotlight 2023 report can be accessed on data.ai’s website or IDC.com under report number US51172023.

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