The gaming industry is today the largest entertainment industry in the world with 2.9 billion gamers globally. In 2021, the gaming industry is expected to generate revenues of around USD 175.8 billion, 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 +7.3% CAGR between 2019 and 2023, 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 were expected to reach 2.6 billion players in 2020. In 2021, mobile games are expected to generate revenues of USD 90.7 billion, representing more than half of the total games market in term of revenues and more than PC and console gaming combined. The mobile games market is expected to continue to outgrow the total games market up to 2023, according to Newzoo.
Games is also the dominating category within mobile applications. In 2020, 7 USD of every 10 USD spent in the app stores went to games, 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 has now taken over the mobile market as well.
And everyone is playing
People across all age demographics play online games. According to the ESA, more than 214 million people in the United States today play video games one hour or more per week. 75% of all U.S. households have at least one person who plays, and 64% of U.S. adults regularly play video games. Across all US players, 59% were male and 41% were female in 2020.