Last Updated: December 2023
Are you looking forward to starting a gaming business? It would be a great idea because the game industry is one of the top emerging industries with a compounded annual growth rate (CAGR) of 13.20%, that’s huge!
The reason behind this growth is the inclination of youth toward gaming. As per research, 91% of Gen Z males and 84% of millennials play video games regularly. Additionally, mobile users are increasingly inclined towards gaming to spike demand.
In this post, we have put together the latest facts and trends in the gaming industry.
Contents in this post are as follows:
- Key Gaming Industry Statistics 2023
- Gaming Industry Revenue 2023
- Gaming Industry Usage 2023
- Gaming Industry Worth 2023
- Gaming Industry Since the 1970s
- Gaming Industry vs Entertainment Industry
Key Gaming Industry Statistics 2023
- In 2023, gaming industry revenue is projected at $365.6 billion globally.
- The video game industry worth is estimated at $214.2 billion.
- Video game content revenue amounted to $47.48 billion in 2022, a 6.6% decrease from $50.83 billion of revenue in 2021.
- Speaking of revenue by countries, China generated the most gaming revenue accounting for $45.8 billion in 2022.
- The gender ratio of gamers in the US is fairly equal with 48% women and 52% men approximately.
- The gaming industry generates more revenue than filmed entertainment and music industry combined.
- The global gaming industry growth is projected from $229.16 billion in 2021 to $545.98 billion in 2028 at a CAGR of 13.20%.
Game Industry Revenue 2023
Gaming industry revenue by country
China generated the most revenue in the gaming industry accounting for $45.8 billion in 2022, followed by the USA with $45 billion and Japan with $20 billion in revenue in 2022.
Gaming industry revenue worldwide
The gaming industry is projected to generate a revenue of $365.6 billion in 2023. Most revenue will come from China at 105.9 billion in 2023.
Furthermore, the gaming industry’s average revenue per user (ARPU) is projected to stand at $137.80 in 2023.
Gaming industry revenue by platform
Mobile games generated the most revenue for the global gaming industry at $92.2 billion in 2022. Console games also generated a significant amount – $51.8 billion of revenue. Downloaded PC games and browser PC games generated $38.2 billion and $2.3 billion in revenue respectively.
Largest gaming company by revenue 2023
As of now, Tencent is the largest video game company globally when it comes to revenue. The Chinese tech giant generated $83.64 billion in revenue last year.
After Tencent, Japan-based SONY is the largest gaming company worldwide by revenue. SONY generated $80.87 billion of revenue last year. NetEase, Nintendo, and Sea ranked 3rd, 4th, and 5th with $14.42 B, $13.79 B, and 12.22 B of revenue in 2022.
The top video game companies are as follows:
|Company Name||Revenue ($ Bn)||Country|
Source – Companiesmarketcap.com
Game consoles sales statistics
Sony’s revenue from PlayStation
Sony generated $4.87 billion in revenue in Q2 2022 from its gaming and network services segment, an increase of 11.6% Y-o-Y.
Playstation revenue breakdown:
- Game sales amounted to $2.5 billion
- PS4 and PS5 console sales $1.21 billion
- Network services (PS Plus, PS Now, and others) reached $791 million in revenue.
Microsoft revenue from Xbox
Microsoft Xbox console game series generated a revenue of $4.79 billion in 2020. The revenue is estimated to reach $8.55 billion in 2023.
Source – Statista
Nintendo Switch revenue
Nintendo generated a revenue of $9.4 million in the quarter ending Dec 2022. The company sold 5.22 million units of the base Nintendo Switch console in the same quarter, a 55.7% drop from the same period last year. However, Nintendo sold a record-breaking 7.69 million units of the Switch OLED model during the same period, a 92.5% increase Y-o-Y.
Source – Nintendo
Video game sales statistics 2022
Video game industry revenue by year
Video game content generated $47.48 billion of revenue in 2022, a 6.6% decrease from $50.83 billion of revenue in 2021.
Video game subscription revenue 2023
Consumer spending on video game subscriptions is expected to reach $8.5 bn in 2023. Furthermore, Video game subscription revenue is projected to reach $11 billion by 2025.
Game consoles sales statistics
Sony PlayStation 2 is the most-sold gaming console ever with over 155 million units sold. Followed by Nintendo DS and Switch with 154.02 million and 122.55 million units sold respectively.
|Platform||Units sold (million)|
|Game Boy & Game Boy Color||118.69|
Source – Wikipedia
Mobile gaming statistics – revenue
Mobile games generate the most revenue for the gaming industry. The mobile gaming revenue amounted to $92.2 billion in four quarters of 2022. Revenue for Q3 2022 accounted for $19.3 billion.
Source – BusinessofApps
Online gaming statistics – revenue
Online gaming revenue amounted to $119 billion in 2022 and is expected to reach $153 billion in 2024.
Gaming Industry Usage 2022
Gaming industry demographics
- Male gamers: 8% – 18-24 years old | 47% – 25-44 years old | 2% – aged 45+
- Female gamers: 2% – 18-24 years old | 12% – 25-44 years old | 28% – aged 45+
- All gamers: 10% – 18-24 years old | 59% – 25-44 years old | 31% – aged 45+
Source – Intenta Digital
Is gaming a male-dominated industry?
Not really, the ratio of male to female gamers is fairly equal. PwC’s UK Quantibus survey shows that 51% of women game in some capacity compared to 53% of men, a 10% increase from the beginning of the pandemic. Additionally, 84% of women gamers are now playing at least once a week.
Source – PwC UK
What percentage of gamers are female?
The percentage of female gamers is increasing. In 2022, women accounted for 48 percent of gamers in the United States, up from 45 percent of U.S. gamers identifying as women during the previous year.
Which demographic group spends the most money on gaming?
Gen Alpha and Gen Z are the generation with the largest percentage of console and mobile players, followed by Millennials. Meanwhile, Millennials, who spend $112 a month on gaming, prefer PC gaming.
Source – Financesonline.com
What is the target demographic for Video Games?
38% of gamers still belong to the 18-34 age group, and 6% are from the 65 years old and above demographic (ESA, 2020).
Source – Financesonline.com
How many gamers are there in the world in 2023?
Newzoo reports there were 2.69 billion gamers in the world by the end of 2020. Growth has been steady with an average of 5.6% year-on-year (YoY) increase.
The number of worldwide gamers is forecasted to reach 3.07 billion by the end of 2023 at a CAGR of 5.7%.
Global gamers per region
Asia Pacific region had the highest number of gamers with 1447 million in 2020. Have a look at the chart below.
Gaming Industry Worth 2023
How much is the gaming industry worth worldwide?
The gaming industry is worth $257.1 billion in 2023. Have a look at the yearly data below.
How much is the video game industry worth worldwide?
In 2021, total video games revenue (excluding esports) reached $214.2 bn, and it will rise at an 8.4% CAGR to US$321.1bn in 2026.
Source – PWC Global
Video Game Industry Growth Since 1970s
At what rate is the gaming industry growing?
The global gaming market is projected to grow from $229.16 billion in 2021 to $545.98 billion in 2028 at a CAGR of 13.20% in the forecast period, 2021-2028.
Source – Fortune Business Insights
How much is the video game industry worth in 2025?
As per PWC research, Gaming Industry is expected to be worth $299.9 bn in 2025.
How Big is the Gaming Industry Compared to Other Industries?
Gaming Industry vs Entertainment Industry
“Gaming is the most dynamic and exciting category in entertainment across all platforms today,” Satya Nadella, CEO of Microsoft.
Top seller and gross earnings
|Gaming Industry||Entertainment Industry|
|Top Seller||Grand Theft Auto V||Avatar|
|Gross Earnings||$6 bn||$2.8 bn|
Source – thc-pod.com
Gaming Industry vs Entertainment Industry – Revenue
As per Statista, the Game industry generates more revenue annually than filmed entertainment and music industry revenue combined.
Estimated global revenue from video games, books, filmed entertainment, and recorded music in 2021:
Favored by Gen Z and Millennials, the Gaming industry has seen significant growth in the last few years and is also expected to continue the rapid growth at a CAGR of 13.5 percent.
Furthermore, the male gender dominance in the market is also disappearing, with 48% of total gamers in the USA being female in 2022. And compared to the entertainment industry, the Gaming industry generated more revenue than the Hollywood and Music industry combined.
So, it is indeed a great time to invest in the gaming industry if you are looking forward to it.