Newzoo has adjusted its estimate of the games market for 2022 in an updated report – it has fallen harder than expected.

A side note: NetEase earned $2.9 billion from games in the first quarter

At the end of 2022, the total gaming industry market was $182.9 billion – a decline of 5.1% over 2021. The previous estimate was $184.4 billion. The mobile market accounts for 50% of all revenue. The PC browser games market is the hardest hit, at 14.8% YoY.

China and the US lead the market, accounting for around 49% of the total. The only regions with a positive trend in 2022 are the Middle East ($6.8 billion – +5.8% YoY) and Latin America ($8.4 billion – +3.3% YoY).

Newzoo

Average playtime dropped by 23% across Steam, Xbox, and PlayStation from 2021 to 2022. We see this as a corrective step as the market levels out to pre-pandemic activity.  

However, Newzoo expects the market to reach $206.4 billion by 2025. This implies an average annual compound growth rate of 2.9%.

Check the full report here.

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