Table of Contents
Introduction
According to Gaming Monetization Statistics, The gaming sector has undergone considerable transformation, moving away from its conventional model of selling games as independent units. Instead, it has embraced a diverse ecosystem where various strategies are utilized to produce revenue. Gaming monetization pertains to the practices and tactics employed by game developers and publishers to derive earnings from their creations.
This multifaceted methodology holds immense importance in maintaining the industry’s expansion, facilitating game development, and furnishing players with captivating interactions. The dynamic gaming monetization landscape is characterized by its ability to adapt to changing market dynamics, emerging player preferences, and technological advancements. This adaptability will remain essential in sustaining the industry’s growth while ensuring that players continue to receive captivating gaming experiences.
Editor’s Choice
- Anticipated figures indicate that the Games market is on track to attain a total revenue of approximately US$225.30 billion in 2022.
- The free content category constitutes up to 90% of the game’s content.
- Anticipated data suggests that the Gaming market is poised to encompass a user base of approximately 4.3 billion individuals by 2027.
- The degree of user penetration, at 48.9% in 2023, will elevate to 54.5% by 2027.
- Furthermore, the projected average revenue per user (ARPU) is expected to reach a value of US$93.31.
- The Mobile Games market is poised to achieve a revenue milestone of approximately US$173.60 billion in 2023.
- The projected outlook for the In-game Advertising market anticipates revenue reaching approximately US$94.53 billion in 2023.
- The most recent 2022 report regarding the console and PC gaming domain discloses a decline of 2.2% in revenue over the preceding year.
Global Gaming Industry Size and Growth
- Gaming Console Market size is expected to be worth around USD 65.00 Billion by 2032
- Anticipated figures indicate that the Games market is on track to attain a total revenue of approximately US$225.30 billion in 2022.
- Forecasts envision a consistent growth trajectory characterized by an annual expansion rate (CAGR 2022-2027) of 8.35%, culminating in an estimated market size of US$352.10 billion by 2027.
- Regarding specific revenue streams within this market, projections highlight that In-app Purchase (IAP) revenue is poised to reach US$145.30 billion in 2022, while revenue stemming from paid app acquisitions is set to amount to US$1.25 billion in the same year.
- Notably, advertising revenue within the Games market is expected to ascend to US$78.84 billion in 2022.
- Concurrently, the Games market is projected to witness a substantial volume of downloads, with the figure anticipated to reach 118.70 billion in 2022.
- The average annual revenue per download is estimated at US$1.90.
- A comprehensive international comparison underscores China’s prominence as the leading revenue generator, with an estimated US$71.30 billion anticipated in 2022.
Monetization Models in Gaming
Free-to-Play (F2P) Model
- Upon downloading a game, users are confronted with two distinct content categories. The initial category encompasses free content, constituting a significant portion of up to 90% of the entire game’s content. In contrast, the second category involves paid content, accessible to users through real currency microtransactions.
- For six years, from 2018 to 2023, the revenue generated by the free-to-play (F2P) PC games market has exhibited a gradual yet consistent upward trajectory.
- Commencing at $21.6 billion in 2018, the revenue figures demonstrated marginal fluctuations, with subsequent years reflecting revenues of $21.5 billion in 2019 and a subsequent uptick to $22.7 billion in 2020.
- The market’s resilience persisted, witnessing a steady rise to $23.1 billion in 2021, followed by a progression to $23.7 billion in 2022.
- This trend is expected to continue in 2023, with projected revenue reaching $24.52 billion.
Subscription Model
- As indicated by the survey findings, approximately 35% of global gamers currently hold active gaming subscriptions; however, this distribution is not uniform.
- In the United States, merely 20% of gamers were actively paying for subscription services, while in markets like India and Indonesia, the prevalence of subscribers was more than double.
- The survey’s analysis revealed the potential for expansion in gaming subscriptions, not only among gamers who have not yet subscribed but also among those already availing of such services.
- Among respondents who were already subscribers, 80% expressed interest in subscribing to multiple services (9%) or inclined towards multiple subscriptions (71%).
Advertising and Ad-Supported Gaming
- The projected outlook for the In-game Advertising market anticipates revenue reaching approximately US$94.53 billion in 2023.
- Forecasts further indicate an anticipated annual growth rate (CAGR 2023-2027) of 11.38%, culminating in a projected market size of US$145.50 billion by 2027.
- Projections indicate a substantial surge to reach $137 billion by 2027.
- This trajectory signifies a noteworthy compound annual growth rate (CAGR) surpassing 14% over the specified timeframe.
- Over the past five years, the proportion of mobile gamers who prefer ad-supported mobile games has notably increased, rising from 21% in 2017 to 50% in 2022. Remarkably, this percentage surpasses those inclined towards pay-to-play games or games predominantly reliant on in-app purchases.
- Regarding parental behavior, approximately 48% reported occasional purchases, while 40% refrained from making any purchases.
- Among Gen X gamers, 45% engaged in occasional purchases, while an equivalent percentage refrained from purchases.
- Millennials mirrored these statistics, with 44% making occasional purchases and the same percentage abstaining.
Mobile Gaming Monetization Statistics
Mobile Gaming Revenue Trends
- Projected figures indicate that the Mobile Games market is poised to achieve a revenue milestone of approximately US$173.60 billion in 2023.
- Forecasts underscore a consistent growth trajectory, exemplified by an annual expansion rate (CAGR 2023-2027) of 6.42%, culminating in a projected market capacity of US$222.70 billion by 2027.
- The projected user count in the Mobile Games market is anticipated to reach 2.3 billion users by 2027.
- The metric of user penetration, marking 25.1% in 2023, is projected to escalate to 29.2% by 2027.
- In an international context, the United States is anticipated to lead in revenue generation, with an estimated revenue of US$46,470.00 million in 2023.
- Moreover, the average revenue per user (ARPU) within the Mobile Games market will be US$90.16 in 2023.
Most Profitable Mobile Games
- As of 2018, mobile gaming outpaced its counterparts in the PC and console domains. Notably, China, the United States, and Japan emerged as the primary contenders in consumer expenditure on mobile games, contributing to more than half of the total spending.
- China leads in spending volume, whereas Japan boasts the distinction of spending the highest amount per capita globally.
- Remarkably successful mobile games like “Honor of Kings” and “Genshin Impact” hail from these nations, underscoring their significant influence on the industry.
- This prowess culminated in mobile gaming’s commanding share, accounting for 51 percent of the total revenue in 2021.
- In 2023, the mobile gaming landscape is set to witness substantial revenue contributions from various prominent titles. Leading the ranks is “Honor of Kings,” generating an impressive revenue of $864.32 million, followed closely by “PUBG MOBILE” with $636.7 million.
- The ever-popular “Candy Crush Saga” continues to captivate players and rake in significant earnings, amounting to $592.75 million.
- Additionally, “Genshin Impact” secures a notable position with revenue of $572.62 million, while the immersive world of “Roblox” garners attention and accumulates $497.92 million in revenue.
Popular In-App Purchase Items
- When evaluating the top-grossing iOS games spanning 2014 to 2018, a prevalent trend emerges wherein applications featuring consumable elements dominate the rankings.
- Noteworthy examples such as Clash of Clans, Game of War, and Fortnite heavily rely on virtual currency as a foundational aspect of gameplay. The fundamental strategy revolves around establishing a framework wherein the possession of currency becomes pivotal for making progress.
- An illustrative case is observed in Clash of Clans, where users require Gems to develop their villages and actively engage in clan wars. Although Gems can be earned through regular gameplay, the option of in-app purchases (IAPs) expedites the process. Among these, the $4.99 “Pile of Gems” stands out as a frequently chosen in-app purchase, contributing to the app’s popularity.
- Among the leading Android games currently available at discounted rates on Google Play, examples include “Lost Journey,” priced at a reduced Rs. 5 / $0.01 from its original $0.99, and “Deus Ex GO – Puzzle Challenge,” now available for Rs. 10 / $0.99, down from $4.99.
- Other prominent titles, such as “Hitman Sniper,” “Need for Speed Most Wanted,” and “LIMBO,” have all undergone price reductions to Rs. 10 / $0.99 from their previous values of $4.99.
- Moreover, gaming enthusiasts can now access titles like “Geometry Dash” for Rs. 40 / $0.75, marked down from $1.99, and “Trivia Crack (Ad free)” for Rs. 50 / $0.75, down from $2.99.
PC and Console Gaming Monetization Statistics
PC and Console Game Sales Revenue
- The most recent 2022 report regarding the console and PC gaming domain discloses a decline of 2.2% in revenue over the preceding year.
- This reduction is attributed to the industry’s transition to a more stabilized state after the robust expansion driven by the pandemic during 2020 and 2021.
- The report emphasizes that 2022 saw the participation of 1.1 billion PC players and 611 million console players.
- The decline of 2.2% primarily stemmed from a 4.2% contraction in the console gaming market, even though the PC games market exhibited a modest 1.8% growth.
- Remarkably, a noteworthy decrease of 20% in the average playtime per player between 2021 and 2022.
- Concurrently, the segment of players engaging in approximately 1000 hours of gameplay each week experienced a substantial decline of 37%.
Expansion Packs and Downloadable Content (DLC) Revenue
- In 2022, downloadable content (DLC) sales constituted 13% of PC and 7% of console revenue in the United States.
- The introduction of DLC resulted in an 11% increase in overall monthly active users (MAU) for both PC and console games. Among various game genres, certain categories reaped more significant advantages from DLC offerings.
- Strategy games registered the highest growth in MAU following DLC releases, closely followed by role-playing and simulation titles.
- Additionally, an intriguing observation is that, on average, approximately 30% of monthly active users for the game “Dead Cells” were new players during the months DLC was released.
- In the period spanning from April 2020 to April 2023, downloadable content (DLC) exerted a substantial impact on the growth of monthly active users (MAU) for specific genres.
Key Concerns
Data Privacy Concerns
- Gaming Monetization in Data privacy emerges as a substantial concern for modern consumers in the contemporary landscape. Smartphone users are increasingly keen on understanding the entities monitoring their mobile behaviors and preferences and how this data is utilized.
- 43% of respondents are willing to allow app tracking, while 39% stated a consistent aversion to opting into data tracking on iOS.
- Around 18% remained uncertain regarding their stance. The pivotal factor influencing individuals to opt into tracking was a sense of trust in the developer or publisher.
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