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Market researcher Newzoo has come up with its high-level forecasts including players’ engagement and revenue numbers from 2020 to 2023. The forecast suggests that there would be 2.7 Billion mobile gamers by 2023 out of Three Billion Gamers. This comes after the report from Newzoo that the Mobile Games will generate a whopping $77.2 billion in 2020.
Gamers are increasing across the globe
The report mentions that the number of gamers worldwide by the end of this year will be 2.7 billion. Out of which a whopping 2.5 billion players will be playing on mobile, 1.3 billion playing on PC, and 0.8 billion on the console. This also shows the popularity of mobile gaming is on the rise and the game developers know it well. That’s why almost all the companies have released or on the verge of releasing their game for Android and iOS.
The data also suggests an increase in the availability of smartphones across the globe. According to Statista, the total number of smartphone users in the world is 3.5 billion. And this means 45.04% of the world’s population owns a smartphone.
Game developers who were working on browser-based games suddenly had something different to work with and there has been a flood of new game launch almost every day. That has played a major factor in the forecast that there would be 2.7 Billion Mobile Gamers by 2023 forecasts Newzoo
The regions like Asia-Pacific, the Middle East, Africa, and Latin America are expected to grow at a high rate in the coming years. The report mentions the year 2023 will mark a major milestone for the global games market. In 2023, the global number of players will surpass the three-billion mark, representing a CAGR of +5.6% from 2015-2023.
Growth in developing economies are contributing more to this player increase
In comparison with developed or mature markets, developing markets are contributing more to this player increase. Newzoo suggests that one major contributor to growth is the growing online population, driven by:
- Improved mobile internet infrastructure;
- More affordable smartphones across all specifications;
- A growing middle class.
In 2019, for example, the number of players in the Middle East and Africa outpaced the number in North America. It is expected that in 2022, the Middle East and Africa will have surpassed even Europe’s player numbers.
There is one important thing worth mentioning that many players in these developing markets are entering gaming via mobile. And most of the developers have a free-to-play monetization model for mobile games which makes it difficult to convert players into payers. The image below shows how these 2.7 billion players are divided between regions:
The global number of players grew +5.3% year on year in 2020, predominantly driven by the regions with the most emerging markets.
Revenue generated from IAP are strengthening their hold
The games market is continuing to move away from boxed revenues. The forecast also suggests the increase in revenue from in-app purchases will reduce even full-game digital revenues in the coming years.
In-App purchase is the core mechanic of the free-to-play monetization model offered by most of the mobile game developers. Free-to-play is the dominant monetization model for mobile and PC gaming and is quickly changing how console games are monetized.
Overall 98% of all mobile game revenues were generated through in-game transactions. Newzoo forecasted that this will grow closer to 100% in the coming years.
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