Gaming Industry Booms: Mobile Gaming, Immersive Experiences Drive $196 Billion Revenue

The gaming industry continues its meteoric rise, with global revenue reaching a staggering $196 billion in 2023, surpassing revenue generated by streaming video, music, and even box office films, according to a new report from management consulting firm Bain & Company. This remarkable growth is fueled by the increasing popularity of mobile gaming and the growing connection between gaming and entertainment.

Mobile Gaming Takes Center Stage

Mobile gaming now accounts for over half of the gaming market, propelled by the accessibility of smartphones compared to consoles or PCs. Bain & Company predicts a six percent annual increase in global game revenue through 2028, with mobile gaming continuing to be a key driver of this growth. This accessibility has opened up the world of gaming to a wider audience, particularly younger generations who are more likely to own a smartphone than a console or PC.

Gaming and Entertainment: A Powerful Synergy

The report highlights the growing relationship between gaming and traditional entertainment mediums. More than half of the 5,000 gamers surveyed reported watching a television series or movie adapted from a game within the past year, a 10 percent increase from 2022. This trend reflects a rising demand for both gaming and its related content, with game adaptations proving to be a powerful driver of engagement.

Game Adaptations Boost Player Engagement

The release of a game adaptation can significantly increase player engagement. Average concurrent users (ACU) for games typically see a 28 percent increase six months after a related adaptation is released. For example, the release of the Resident Evil television series on Netflix in 2022 led to a 62 percent increase in ACU for Resident Evil 2 on PC, while the 2020 release of the Sonic the Hedgehog movie boosted ACU for Sonic Adventure by 56 percent. These examples demonstrate the potential of game adaptations to attract new players and re-engage existing fans.

Demographic Shifts and the Future of Gaming

The report sheds light on the changing demographics of gamers, with a significant majority (52 percent) of respondents playing games regularly. While the market for gamers aged 45 and above is smaller, their potential is substantial, with 31 percent identifying as gamers. The younger generation of gamers, aged two to 18, represent a significant majority (80 percent) of the gaming market and are more likely to spend money on game purchases and in-app purchases (IAP). This generation is crucial to the industry's continued growth and is shaping the future of gaming.

Immersive Experiences and Social Gaming

Immersive experiences like Roblox and Fortnite are gaining significant popularity, particularly among gamers under 18. Approximately one-third of surveyed gamers identified these types of games as their favorites, with this figure approaching nearly half among gamers under 18. These games are viewed as social communities, similar to how adults use messaging platforms like WhatsApp and Facebook, and are becoming central hubs for both social interaction and entertainment for a younger generation entering adulthood.

Gamers who participate in social activities beyond core gameplay spend five times more per hour than those solely focused on playing. This highlights the importance of social interaction within the gaming experience and its impact on player spending. As this younger generation grows older, they are expected to remain active in the gaming world, continuing to invest their time and money and demanding more features from game developers.