The gaming industry is today the largest entertainment industry in the world with 2.7 billion gamers globally. In 2020, the gaming industry is expected to generate revenues of around USD 159.3 billion, growing year-on-year by +9.3%, according to Newzoo.
The games market is expected to continue its strong growth in the coming years. The total market will exceed USD 200 billion at the end of 2023, growing with a +8.3% CAGR, according to Newzoo.
The gaming industry is usually classified into three main categories – PC, mobile and console gaming.
Mobile gaming is the world’s most popular form of gaming. Mobile games are expected to reach 2.6 billion players and generate revenues of USD 77.2 billion in 2020, representing almost half of the global games market in term of revenues. The mobile games market is expected to grow by 13.3% year-on-year in 2020 and will continue to grow faster than the total games market up to 2023, according to Newzoo.
Games is also the dominating category within mobile applications. In 2019, mobile games made up 72% of all app store spend, according to App Annie.
Free-to-play (F2P) games are gaining market share
Stillfront’s games are predominantly within the Free-to-Play (F2P) segment. F2P games give gamers free access to games, as opposed to premium games which must be paid for prior to being played. The F2P business model relies upon three different levels of usage. The majority of the users are non-paying but can still be very dedicated to the game. The vast majority of the paying users spend small amounts for unlocking extra functions or purchasing digital currency to use within the game. A minority of the paying users are very dedicated, with gaming as their hobby, and spend much time and money on their favorite games.
The F2P model has successfully been applied to the browser game market for years and it has now taken over the mobile segment as well. In the world’s single largest market, Asia, and particularly in China, the model dominates, and it is gaining ground across all platforms globally.
And everyone is playing
People across all age demographics play online games. The average age of a gamer is now 33 years of age, according to the ESA, and the age of gamers are distributed fairly even across most age groups. The number of female gamers has increased rapidly during the past few years and today represent just under half (46%) of the total population of gamers.
