In August 2023 Newzoo predicted the games market would generate $187.7 billion in 2023 but their latest report has revised this estimate down to $183.9 billion.

This figure comes from the research company's updated Global Games Market Report 2023 which reveals a $3.9 billion drop and a 2% decrease in Newzoo's original estimate.

Newzoo's revised estimates also show that mobile gaming revenue sits at $89.9 billion, down 2.1% year-over-year while PC gaming revenue increased by nearly 9%. The combined PC and console market generated $94 billion, up 3.1% year-over-year.

No cause for alarm (yet)

Despite this slight dip, the adjusted report predicts that games revenue will reach $207 billion by 2026 and forecasts a 6% year-over-year growth in 2025, higher than previously estimated indicating that today's drop is a correctional glitch rather than the start of any major new downturn.

Newzoo's report still maintains a positive outlook as the adjustment is seen as a small wobble in an otherwise robust market trajectory which indicates that substantial growth is still anticipated in the near future.

While the mobile gaming market holds the largest revenue share, privacy changes from Apple and Google are impacting revenue growth with some key genres experiencing drops despite RPGs maintaining a significant market share.

As Newzoo gets set to release its 2024 report in July, this will be the last update on the 2023 report.