How Much Is the Gaming Industry Worth in 2023? [+25 Powerful Stats]

Once upon a time, in our very own galaxy, the first-ever commercial arcade game was released.

Computer Space was before all a stepping stone, one that had to prepare the world for what was to come—the video games mania!

The craze hit the world hard just a year later. In 1972, Pong was released—a game that was, you guessed it, an arcade version of ping pong. Since then, the video game industry has taken the world by storm, its revenue massively growing by the minute.

Which, of course, begged the question, “How much is the industry worth?” You’ve probably asked yourself the very same one.

Don’t worry, as always, we’ve got you covered!

How Much Is the Gaming Industry Worth? Think Billions

• The global gaming market is set to reach $256.97 billion by 2025.
• More than 3.2 billion people worldwide play games.
• The console gaming market is expected to grow to $72.67 billion in 2022.
• The immersive games segment’s revenue in 2024 is predicted at $2.4 billion.
• Sony’s September 2022 value is $97.55 billion.
• The eSports audience will grow to over half a billion in 2022.
• High-fidelity mobile games are on the rise.

Those are some impressive numbers, right? 

Let's check out the latest data!

How Much Is the Gaming Industry Worth in 2023: Key Statistics

To keep you in the loop, we have compiled a collection of essential info on the video game industry revenue in 2022’s state. Let’s dive right into it:

1. The market’s worth is predicted to reach $435 billion by 2028.

(Source: Pr Newswire)

A massive start! So almost half a trillion dollars are in store for the gaming industry. Moreover, stats point to a growth rate of 12.1% for the 2022–2028 period.

2. The video games segment will hit a sales volume of $100.56 billion by 2024!

(Source: We PC)

Let’s compare and contrast:

The 2017 earnings were “just” $78.61 billion, while the 2020 ones went over $90 billion.

What’s more, the market grew and is set to continue at a 2.29% annual rate for the 2020–2024 period. So what do such stats tell us about the video game industry revenue by year? That, evidently, its dominance has just begun!

3. Immersive gaming is expected to surpass $2.4 billion in global revenue by 2024.

(Source: Statista)

In comparison, the 2022 figure is projected at $1.6 billion. What’s the deal behind such immense growth?

So, immersive gaming (or VR gaming) is about 20 times more interesting than traditional games. Samsung is still the most prominent VR company worldwide, but even up-and-comers, such as Bigscreen VR and AltspaceVR, are fast progressing into the future of virtual games, much quicker than many expect.

4. Asia-Pacific lays claim to the largest revenue from gaming worldwide.

(Source: App developer magazine)

Let’s see what the 2022 gaming industry statistics have to say about it:

The region’s revenue is set to be over $96.3 billion by end-2022. They further claim that Asia-Pacific will remain the world's most significant digital gaming market, with expectations for a 3.4% annual growth.

5. China boasts the largest video games market worldwide.

(Source: newzoo)

Quite a surprise, right?

China ranks first among the most prominent gaming markets in the world. The country is set to generate $50.18 billion. The US follows closely behind, with $47.62 billion.

6. The console gaming market is ending 2022 at $72.67 billion, with a CAGR of 11%.

(Source: The business research company)

It has certainly enjoyed a memorable time since 2015. The latest facts about video games reveal it’ll even reach $103.93 billion in 2026!

7. Mobile games’ revenue will pass the $100 billion mark by 2023.

(Source: Statista)

So in 2021, mobile games accounted for almost half of the worldwide video game industry revenue… and it doesn’t look like they’ll be slowing down any time soon. 

The 2022 gaming industry trends are definitive: the mobile penetration rates and gaming smartphone usage continues to skyrocket on a global scale.

8. Razer continues its investing streak in Singapore…

(Source: Business Wire)

Razer is well-known for its gaming accessories and peripherals. The company’s grand investments are another cause for its fame.

In 2021, Razer pledged $7.2 million to help the growth of Singapore’s gaming market. In a bid to bolster the niche, they were looking to underwrite gaming companies and eSport teams in the country.

In 2022, they led a $4 million funding round in a Singapore crypto payment startup. So if you were wondering what’s the link between the gaming and crypto industries…

Crucial Findings About the Video Games Industry

Now that we’ve learned the latest data, let’s dive deeper into the industry’s structure, history, and key numbers.

9. The 2021 video game industry revenue was…

(Source: Pr Newswire)

The segment grew exponentially during the pandemic. The trend continues at full speed.

Video games generated $201 billion in the previous year—experts predict this number will continue to dramatically increase.

10. Recent video game trends reveal the industry is likely to reach more than $225 billion by end-2022.

(Source: Pr Newswire)

That means we’re expecting over a $24 million increase in less than a year.

The latest video game industry revenue by year confirms this. The market is forecast to grow at a 12.1% annual rate.

11. The average revenue per user in the video games segment in 2022 is projected at $84.71.

(Source: Statista)

For that, we have to thank the star of our show—smartphones. As you already know, mobile gaming is taking over the world.

The US industry generated a record $41.7 billion in 2021! What’s more, thanks to the COVID-19 pandemic and technological innovations, the number of players is now higher than ever. So how many Americans play mobile games? Over 150 million! What’s even more curious is that this number is predicted to reach 181 million by 2027.

Okay, that’s great.

But do you know what video games people are playing, and which are the most popular?

We have more surprises prepared. You know how your grandma just adores Solitaire? Well, she’s not the only one.

12. Casual and hyper-casual games rule the mobile gaming world.

(Source: Statista)

The majority of smartphone owners are made up of the puzzle games fan club. The proof? Listen to this:

It’s forecast to go over $21 billion in revenue by end-2022. Moreover, its 2022–2026 CAGR is expected at 7.49%, resulting in $28.59 billion in earnings.

13. The global esports audience is expected to go over half a billion in 2022.

(Source: Newzoo)

Hey, traditional video streaming services, step aside for a bit—there is a new sheriff in town. Platforms like Twitch are killing it in 2022.

Venues can hardly hold everyone willing to attend. What’s more, Overwatch and LoL leagues are supposed to have their own built in the future. Even now, there are new esports arenas under construction—take for example, the LCK Esports Stadium in Seoul or Full Sail University’s arena in Florida.

Now that we know just how many people are diehard esports fans, it is hardly astonishing that:

14. eSports revenues are forecast to reach over $1.6 billion in 2024.

(Source: Statista)

What about the 2021 number?

The industry recorded net earnings of over $1 billion the previous year. The 2024 figure is currently estimated at $1.62 billion.

Talk about growth…

15. FIFA22 was the best-selling game in the UK for 2021.

(Source: GamesIndustry.biz)

Even though it was released on October 1, the game still managed to top the list, finishing the year up 10.3% of FIFA21. Call of Duty: Vanguard took the second spot, even though it suffered through a pretty tough year—sales were down 36.1% compared to CoD: Black Ops Cold War. The top three is completed by Grand Theft Auto 5—a fascinating occurrence since it was launched eight years prior.

Overall, 35.8 million digital and physical games were sold in the country in 2021. Add to this number over 3.3 million consoles and more than 10.6 million game accessories.

Curiously, games sales were down 16% from the previous year. However, you’d agree that 2020 was a pretty atypical and unusual year, right? It has its positive moments, though—sales surged unnaturally high during the first lockdown. So, it’ll be fairer to compare to 2019 numbers—if we do that, we’d see that the games software market is actually up 38%.

The #1 console was Nintendo Switch—overtaking PS5 in the final months of the year.

16. Activision Blizzard is the largest video game company.

(Source: Statista)

As of May 2022, it holds an estimated market cap of $61.41 billion.

That is quite a big piece of the video game market. Activision Blizzard is the company behind Call of Duty: Black Ops, Call of Duty: World of War, and Call of Duty: Modern Warfare.

Right behind is Japanese giant Nintendo, with a $52.15 billion market cap. They have created some of the most popular video games, including Animal Crossing and Mario Cart.

EA is third in line, with an estimated value of $36.13 billion. They are responsible for FIFA and Star Wars games.

How about we now proceed to clear the stage for some of the lesser-known names? After all, the indie gaming market deserves its 15 minutes of fame too.

Are you wondering what exactly an indie game means?

Indie comes from “independent,” meaning they don’t belong to any of the big sharks in the industry.

Popular titles in the indie game territory include Super Meat Boy, Furi, Bastion, Fez, Dead Cells, and Celeste.

They have been on the market long, overshadowed by the giants. Still, they are slowly and surely making a name for themselves.

And if we haven’t blown your mind with this info about the size of the video game industry yet, then prepare for your jaw to hit the floor.

It turns out that the video game industry makes more money than Hollywood.

17. Players worldwide spent $41.2 billion on mobile games and in-app purchases in Q1 2022.

(Source: SensorTower)

The data combines AppStore—$25.6 billion—and Google Play figures—$15.6 billion.

Curiously, just the two top-grossing games scored over a billion in consumer spending. If you’re wondering what they are, we’re talking about Honor of Kings and PUBG Mobile, of course.

Did you know that just American gamers spent more than $60 billion on games in 2021? Additionally, according to Statista, over 40% of them make in-app purchases.

18. The average gamer’s age in 2022 is 31 years.

(Source: Cloud wards)

You probably expected that number to be lower, right? Well, we all love playing games in our free time, after all.

Actually, the age group representing the highest number of players among those 3.2 billion is between 18 and 34 years, with 38%. Next on the list are those under 18, with 20%. Gamers older than 65 years comprise only 7%, making them the least common age group.

The Gaming Industry in 2023 and Beyond

The future is bright! Here are some key trends the gaming industry has in store for us:

19. Cloud-based subscription services are currently the hottest trend.

(Source: Forbes)

All the big players—Google, Nvidia, Sony, Microsoft, etc.—are betting hard on a streaming, cloud-based future. This means that all that’s needed would be streaming or smart devices—no more spending a fortune on expensive hardware.

Interest in cloud gaming has grown by 105% in the last few years, which further proves the skyrocketing popularity of such gaming experiences.

However, there are still limitations blocking such progress. Among them are fast and reliable internet connection (though, with the spread of 5G networks, this problem should be solved), robust infrastructure, and adapting old or different business models.

20. The future of the gaming industry is immersive.

(Source: The Royal Borough Observer)

The idea of a fully immersive gaming experience has been a pipe dream of the industry. The opportunities are boundless, much like the interest of developers, gamers, and VR aficionados. Powerful virtual reality technologies are already used in the industry. However, the video game trends in 2022 are unequivocally reporting that companies’ focus is pointing straight in this direction—where the line between experiences begins to blur.

What more can we expect? Digital products, in-game accessories and events, and even purchases and gaming will become immersive. Color us intrigued!

21. Nostalgia is a powerful tool…

(Source: LurkIt)

…so we’ll likely be seeing many more remakes and reboots. It’s a universal trait—to be longing to return to past games and feel this wave of calmness that makes time stand still.

Gamers are revisiting familiar worlds, old concepts are given a new, fresh spin… They are spoilt for choice and are still choosing what’s familiar.

What’s more, all this is encouraging devs to release indie creations on the iconic games.

Reports further indicate that the younger generation will also pick an interest in such games, but those who grew up with them are naturally their primary target.

22. High-fidelity games are on the rise.

(Source: Arm)

Many game developers are becoming interested in creating ultra-realistic graphics. Video game trends indicate that China, of course, tops the category in terms of revenue. In 2021, 88 of the country’s top 200 grossing iOS games were high-fidelity ones. They contributed to 69.9% of the top 200’s total revenues. This is an increase compared to the 2016 revenue share of high-fidelity games, which was 42.3%.

23. Subscriptions are finding their way into the gaming industry.

(Source: Swrve)

The “Netflixization” of gaming is at full speed. We’re all perfectly aware of how the method works and the positives it brings.

It looks like it has a spot in the gaming world, as 3 in 4 Millennials report they use such services. And why would it not—that way, players have access to massive libraries varying from new titles to familiar and loved ones. On a developers’ plus side, the method offers a built-in audience and an effective tribune to present their latest ventures.

24. The gaming industry is diversifying.

(Source: ExplodingTopics)

Not so much as a future trend, as the wheels are already set in motion… Much like the rest of the world, the 2022 gaming industry is turning its focus on equality and proper representation.

Yes, the female/male split among gamers is approaching a 50/50 ratio. But we’re talking about so much more than that: female protagonists (just think of The Last of Us II), lack of traditional “male” and “female” gender options (e.g., Cyberpunk 2077), representation of minorities, etc.

As video games are a great way to reach a massive audience of all kinds (especially younger ones), diversifying is also becoming increasingly important.

25. Make way for live streaming...

(Source: Future Market Insights)

Streaming is all the rage these days… and it looks like it’s going to continue this trend. Just consider this: esports and games streaming’s market value is worth $2.3 billion in 2022 and is likely to reach $7.2 billion by 2032.

Wrap Up

So, what’s the outtake from all of this?

The gaming craze is huge. The video game industry revenue is forecast to reach $435 billion by 2028. Casual and hyper-casual games rule the mobile gaming world. Sony Interactive Entertainment is the rich kid of video game companies. As an industry, it is more significant than even Hollywood.

Mind-blowing.

Did we manage to give you an answer to how much the gaming industry is worth? We are honestly surprised by all those huge numbers, and we hope you found them as entertaining as we did! Till next time!