Video games commerce company Xsolla has released the winter 2024 edition of its State of Play industry report, revealing the latest trends, forecasts, shifts and surprises to inform and empower fellow businesses.
Highlights among the trends in Xsolla’s report are an increase in cloud gaming, women’s growing influence on the industry, and the increasing share mobile takes in yearly gaming revenues. In fact, mobile represented a huge 72% of game revenue in 2023, the report claims.
Rising revenues
Xsolla’s findings show a rise in total sales and user count - up 44% and 22% respectively - when comparing 2020-21 with 2022-23, indicating a continued growth trend though a reduced rate of increase, reflecting "resilience" as the industry traverses this transitional period.
The report places the games industry’s current growth rate at 9.4% for its 2023 revenue rise, and projects an annual rate of 8.7% between 2024 and 2027. This would land the industry at $363 billion by 2027.
Gaming’s projected growth rate is also notably higher than the broader entertainment sector’s, which Xsolla expects to be 2.8% year-on-year.
The report also compares gaming with e-commerce, as the two have seen similar growth trends through the global pandemic. Naturally, both industries have embraced technology and therefore excelled during the lockdowns, contributing to a surging number of digital payments.
While e-commerce has changed the game for transactional convenience through the use of digital wallets and mobile payment apps, mobile games have utilised in-app payment models for years and continue to grow. In fact, mobile devices accounted for 60% of e-commerce retail sales in 2023, comprising the bulk of online orders and further acclimatising mobile users with spending through their devices.
Looking forward
After the success of gaming IP in the broader culture - such as The Super Mario Bros Movie’s becoming the first game-inspired film to surpass $1 billion at the box office - and the huge success of consoles like the Nintendo Switch, Xsolla expects the next generation of consoles like the Switch successor will prove "instrumental" in driving the expansion of the games market.
Naturally, mobile will remain an important facet of growth too, despite the ever-evolving privacy challenges developers face. And, of course, AI technology is expected to play a pivotal role in improving gameplay experiences and bolstering innovation.
"Reflecting on our journey to the Winter 2024 edition of 'The Xsolla Report: The State of Play', I'm brimming with pride and excitement. The gaming world, always a hub of dynamic innovation, has outdone itself, and our shared efforts continue to propel this industry forward," said Xsolla president David Stelzer.
"Together, we're not just part of the gaming industry but actively shaping its future. I'm confident that our best days are still ahead."
Xsolla's full report includes further predictions into the potential number of gamers and more.
Of course, the potential of AI was also a big topic at PGC London last month: an important tool in gaming and to "compete with the cyborgs".
