According to Newzoo’s 2013 Global Games Market Report, game revenues will grow to $70.4 billion worldwide this year, representing a 6% year-on-year increase. The number of gamers is expected to surpass 1.2 billion by the end of the year. Regional growth in game spending is highest in Latin America and the Asia-Pacific region: 11%. North America and Europe will show very modest growth. The market for smartphone and tablet games will grow 35% to $12.3bn, easily outpacing any other segment. In terms of game spending per screen, the PC grosses the largest share with 39% or $27.6bn.
Market by Region in 2013
The Asia-Pacific market will reach $25.1 billion this year, making it the biggest games market in the world. Despite a year-on-year increase of 11%, Latin America remains a relatively small market with revenues of $3.0 billion. The North American market will total $22.8 billion (+2% y-o-y) followed by EMEA with $19.5 billion (+4% y-o-y).
Peter Warman, CEO of Newzoo, adds: “Over the past year, we have received an increasing number of enquiries about the availability of a consistent and clearly defined set of numbers showing the “total picture” for the games market: not just revenues, but also the absolute numbers of players as well as paying players broken down in segments and regions. I am very pleased we are now able to provide this resource to our clients using our new Global Data Model, which we started to develop in 2012.”
Market by Segment in 2013
Consoles remain the highest revenue generating platform, with $30.6 billion (-1% y-o-y) equal to 43% of global games revenues. This includes all DLC spend and business-to-consumer second-hand trade. Traditional PC gaming (downloads and boxed) contracts slightly to $6.0 billion (-7% y-o-y), but this is offset by 14% year-on-year growth for MMO games, totaling $14.9 billion.
Game revenues generated by tablet and smartphones will gross 18% of the global games market, surpassing $12bn (+35% y-o-y), which is roughly double the amount spent on games for handheld consoles.
Market by Screen in 2013
In response to market changes and disappearing boundaries, Newzoo has developed an alternative segmentation model, the Newzoo Screen Segmentation ModelTM.
When plotting the 2013 revenue estimates in this model, the largest screen is the Computer Screen – this encompasses boxed or downloaded, casual, social and MMO games – , generating 39% of all revenues compared to 36% for the TV or Entertainment Screen. The Personal Screen or mobile phone, will show global growth of 22% y-o-y and accounts for 12% of global games market revenues. Within the category of Floating Screens, the shift from handheld consoles to tablets is illustrated by the anticipated 78% growth for tablets and 21% decline in spending on handheld console games. Over time, global revenues are expected to grow towards a more equal divide across the four typical screens.