Computer and Video Games (Global Market)

2022

The Russian market of competitive online games entered the seventh place in the world

The Russian market for competitive online games entered seventh place in the world. This happened in 2022, according to a joint study by the developer of services for competitive games ex corp. and research company Nielsen. The report was published in August 2023.

As Forbes writes with reference to this study, with a total population of 146.1 million people, the percentage of players in competitive games in Russia is 7.8%. In absolute terms, this is 11.5 million people, the average monthly cost of which is $22.3 per person. At the end of 2022, the average monthly expenses of Russians for in-game purchases amounted to $3.1 billion. Due to this, the Russian Federation was in seventh place, losing only to the United States ($16.5 billion), China ($9.8 billion), Japan ($7.2 billion), South Korea ($6.4 billion), Great Britain ($4.4 billion) and France ($3.3 billion).

The Russian market for competitive online games entered seventh place in the world

Experts clarify that competitive games include those in which gamers, competing with other users, try to get the best result. These include, for example, Dota 2, CS: GO and League of Legends. Among the main spending items, the researchers highlighted in-game weapons and downloadable content.

According to experts, the activity of Russians in the playing space is undeniable. Russian on the Steam platform is second only to Chinese and English, and Russian e-sportsmen regularly win international competitions. Large communities and ecosystems have formed around popular games such as Dota 2 and CS: GO, although Russians are traditionally not very inclined to pay in games. In addition, sanctions made transactions in individual games through the usual payment services impossible.

Traditionally, in Russia, esports and competitive games are very popular due to the high share of PC players and a wide range of so-called hardcore and midcore gamers, that is, those who prefer complex games, said Konstantin Sakhnov, founder of Vengeance Games LLC and senior lecturer of the Game Project Management program at the Higher School of Business at the Higher School of Economics.^[1]

Market cut 2.2% to $92.3 billion

In 2022, the global video game market for personal computers and consoles showed negative dynamics. Total revenue was approximately $92.3 billion, down 2.2% from the previous year. Such indicators are reflected in the report of Newzoo, published on March 16, 2023.

According to estimates, in 2022 the volume of the PC games segment reached $38.2 billion, an increase of 1.8% on an annualized basis: the share in the total revenue amounted to 41.3%. The demand for console games compared to 2021, on the contrary, decreased by 4.2%, and sales were at the level of $51.8 billion - about 56.2% of the total expenses of gamers. Another $2.3 billion, or about 2.5%, was brought by browser games, but the demand for them in 2022 collapsed by 16.7%.

From a geographical point of view, the largest video game markets are North America and the Asia-Pacific region: their contribution in 2022 to total sales amounted to 34% and 33%, respectively - $31.2 billion and $30.2 billion. At the same time, the United States accounted for $29 billion, and China - $15.2 billion. That is, the total share of these two countries is 48%. European gamers spent $24.3 billion on games, or about 26% of global costs. The contribution of Latin America is estimated at $4.2 billion (5%), and the Middle East and Africa - at $2.5 billion (about 3%).

The study notes that the reduction in the gaming industry is primarily due to stabilization after explosive growth in 2020 and 2021, provoked by the COVID-19 pandemic: while in self-isolation, users around the world actively purchased games to pass the time. In addition, analysts say, due to the current epidemiological situation and macroeconomic difficulties, some publishers have postponed the release of expected products from 2022 to a later date. And some companies have decided to reduce the number of games being developed in favor of extending the life cycle of the most popular projects. A shortage of electronic components had a negative impact on the global gaming industry. In 2022, consumers around the world faced a shortage of Microsoft Xbox Series S'X and Sony PlayStation 5 consoles.

The average time spent by gamers in games on Steam, Xbox and PlayStation platforms in 2022 decreased by about 20% compared to the previous year. At the same time, representatives of the beautiful half of humanity made up about 40% of the total base of players on PC and consoles.

The most popular games in terms of the number of active monthly audiences on computer platforms were ROBLOX, Call of Duty Modern Warfare II/Warzone 2.0 and Fortnite. In the case of Xbox and PlayStation, the three most sought-after projects are identical - Fortnite, Call of Duty Modern Warfare II/Warzone 2.0 and Grand Theft Auto V. Nintendo Switch owners preferred Pokémon Scarlet/Violet, Fortnite and Fall Guys.

In terms of the most common genres, adventure games occupy the first place: 83% of gamers spent time in them in 2022. Shooters are in second place with 77%, while royal battles are in third with 74%. In addition, sports simulators (63%) and role-playing games (46%) were in demand.

The report states that as of the end of 2022, approximately 66% of gamers on PCs and consoles spent money on video games (including content and subscriptions). At the same time, 72% of users played on at least two hardware platforms. Analysts also note that gamers who have tried out cloud gaming services are more likely to spend time on multiple platforms.^[2]

2021

Named the largest game developers in the world and their income

In 2021, Apple ranks third in game revenue among the largest game developers in the world, just behind Sony and behind Microsoft. Such data analysts NewZoo published in early June 2022. According to their calculations, Apple received $15.3 billion in total revenue from games in 2021, which is 17.7% more than in 2020.

In first place was the Chinese company Tencent, which owns games such as League of Legends and PUBG Mobile. In 2021, the company earned $32.2 billion, which is 9.9% more than in 2020. Sony ranked second with revenue of $18.2 billion, although this figure decreased by 2.3% compared to 2020.

The largest game developers in the world have been named. Income

Along with Google, Apple is one of the largest holders of mobile gaming platforms. While Apple has its own gaming service, the vast majority of its gaming revenue undoubtedly comes from third-party games in the App Store. Due to the fact that both companies receive from 15% to 30% of purchases of applications and built-in applications on their platforms.

A report from NewZoo said gaming hardware sales-focused companies like Microsoft, Sony and Nintendo did not show as strong revenue growth as expected. According to analysts, this was influenced by pressure on the supply chain. Video games have made a big contribution to the entertainment industry, and so far the gaming industry has shown no signs of slowing down. The reason, according to analysts at NewZoo, probably lies in the fact that games are played by everyone, regardless of gender and age. Video game companies have therefore become influential players in the technology sector.

However, the report also said major mergers and consolidations would affect the 2022 calendar if all came true. Sony recently acquired the developer Destiny company and Bungie Microsoft is buying. Activision Blizzard

Apple does not share revenue by individual app categories in total service revenue. However, it is known that games are one of the main sources of income for the segment, services, from the company.^[3]

Russia entered the top 5 countries in terms of consumption of game content

At the end of 2021, Russia was in the top five countries in terms of consumption of game content along with, China, and USA. South Korea Japan Such data were released by analysts in March 2022.Boston Consulting Group (BCG)

They noted that by the end of 2021, the Russian Federation lagged behind most of the leading countries in the rate of formation of new game content, which, according to experts, opens up opportunities for the development of this industry in the country.

Russia entered the top five countries in terms of consumption of game content

The combined turnover of the game industry, which includes games and esports, is more than double the total global box office of cinemas, the entire music streaming and album sales market, and the budget of the five richest sports leagues in the world combined, BCG said in a report.

Experts analyzed the situation in different countries and identified several factors that help states to provide support for their own gaming industry. This primarily concerns the financing and support of new companies in the sector, as well as the development of business incubators, the provision of tax incentives and subsidies. This also applies to the creation of the infrastructure necessary for the development of the gaming industry.

It is noted that by the end of 2021, the volume of the global games market has come to a record figure of $175 billion and will continue to add 10% annually.

The gaming industry market will increasingly have a cultural and financial impact globally, says BCG partner and managing director and one of the report's authors, David Panhans.

If a few years ago we talked about the role of music and cinema, today the struggle for the hearts and minds of the consumer is being waged in the playing space. Acquiring a reputation in games and esports may be no less important for the country's image than being at the forefront of science and sports, and for large companies and capital, games present new opportunities for interaction with their brands, as well as new investments, Panhans said.[4]

Spending on computer games worldwide reached $180.3 billion

In 2021, a total of $180.3 billion was spent on computer games around the world, which is 1.4% more than in 2020. This was announced at the end of December 2021 by Newzoo analysts.

After an unprecedented period of growth last year, we assumed that the gaming market would not be able to grow at the same rate. In fact, we initially predicted a slight decline in income, but consumer spending on games was resistant to the long-term effects of the pandemic, the Newzoo report notes.

Spending on computer games worldwide in 2021 reached $180.3 billion

In total, by the end of 2021 there are about 3 billion computer players in the world, which is 5.3% more compared to 2020, of which 55% live in the Asia-Pacific region, which includes India and China, users of these countries showed the greatest activity in computer games. The most profitable platform is mobile gadgets ($11.7 billion - tablet computers, $81.5 billion - smartphones), their users spent $93.2 billion, which is 7.3% more than in 2020. Game consoles in 2021 accounted for $50.4 billion, personal computers - $36.7 billion ($2.6 billion - browser games, $34.1 billion - boxed games and digital copies).

The number of consoles sold for all years as of December 31, 2021. The statistics do not include data sales of re-released analogues of classic models

According to Newzoo, in 2021, the cloud gaming services market more than doubled: $1.57 billion against $669 million in 2020. Analysts claim that by 2024 this market may increase to $6.5 billion.

In 2021, the audience of viewers who watch game streams also increased. The figure reached 747 million people, which is 12% more than in 2020. 465 million people watched esports events, which is 6.7% more than last year. On the popular streaming portal Twitch, users watched a total of 23.3 billion hours of streams, a record number for all time.

2020

Apple earns the most from video games, although it itself has not released a single one

In early October 2021, it became known that Apple earns more from video games than other companies, although it itself has not released a single game. Read more here.

Global Video Game Market Growth by 12%, to $126.6 Billion

According to the analytical company SuperData, the video game market in 2020 reached $126.6 billion and grew by 12% over the year, as many users were forced (due to the COVID-19 coronavirus pandemic) to stay at home and have fun using digital games.

Free games continue to generate the bulk of gaming revenue (78%), with Asian markets accounting for 59% of revenue, where users prefer complex mobile games. Honor of Kings and Peacekeeper Elite (Tencent) brought developers more than $2 billion each at the end of 2020.

In 2020, the mobile games market grew by 10% and amounted to 58% in the total volume of the gaming industry. Experts attribute the growth of this segment to the fact that most mobile gamers (62%) use smartphones and tablets not so much during trips as as as the main gaming platform.

Premium gaming revenue rose 28% from 2019, outpacing free gaming market growth (9%). North America and Europe combined accounted for 84% of all premium gaming revenue. Since COVID-19 has seriously affected these regions, spending on premium content has risen sharply. The Animal Crossing: New Horizons simulator has become one of the most popular games in 2020, breaking the record for consoles for the most downloads from premium games.

At the same time, in 2020, the gaming video content (GVC) market grew to $9.3 billion and attracted 1.2 billion viewers. In addition, in 2020, revenues from VR games increased, increasing by 25% on an annualized basis to $589 million. The release of Half-Life: Alyx has revived interest in the technology among avid gamers, and the low-cost Oculus Quest 2 headset has attracted new consumers to virtual reality.^[5]

Financial performance in the gaming industry

2019

The global computer games market reached $152 billion.

On July 27, 2020, the HSE presented an overview of the global computer games market for 2019. The computer game industry (development, publication and promotion of games) is one of the rapidly developing industries of computer technology and at the same time the global entertainment sector. The number of gamers is growing (2.5 billion players in 2019), and gaming itself becomes a highly paid profession. An ecosystem is being formed. Around the core, consisting of game developers and publishers, specialized media, special financial and advertising tools develop; specialized physical platforms appear (Internet cafes, locations for cyber tournaments, etc.); the development of games begins to be taught in higher educational institutions, etc. In addition, players from related markets also want to occupy their niche - electronics manufacturers (for example, Apple) or Internet corporations (for example, Google), which have the resources to bring promising gaming solutions to the market.

As for the trends determining the development of the global gaming industry, here, first of all, it is necessary to note technologies: mobile, cloud, virtual, graphic, artificial intelligence, etc. For several years, computer games have been integrated into social networks. The opposite trend also appeared - they themselves become a kind of social networks. The popularity of cybersport is growing. Esports tournaments can already be comparable to championships in traditional sports in terms of prize money. For example, the prize fund of the Dota 2 cyber tournament in 2013 amounted to $219 million. In addition, esports has become a catalyst for the development of such a direction as streaming - online broadcasts of the game in real time, posted on special platforms. Users are ready not only to play, but also to watch others play, because it is streaming that gives a complete idea of ​ ​ what a computer game is. In order to reach new market segments and find new sources of income, a number of industry participants are moving to material markets. In particular, we are talking about sales of goods with brand symbols (T-shirts, bracelets, cups, etc.), the organization of theme parks (Angry Birds parks, etc.), etc.

The global market for computer games (implied sales of gaming content to users without taking into account the earnings of online casinos) is becoming deeper and larger. Over the past five years, according to Newzoo estimates, it has grown by an average of 11% per year and in 2019 reached $152 billion, overtaking a number of other competitive content markets, in particular, we are talking about the film and music industries, whose total volume of markets amounted to only $62 billion. Growth drivers were the availability of the Internet and computerized devices, primarily smartphones, as well as the expansion of distribution channels. In 2020, according to preliminary analysts' estimates, the volume of the global computer games market could grow by 18%, to $170-180 billion. But the COVID-19 pandemic has made its own adjustments, acting as a kind of market driver. Nevertheless, analysts fear that in a difficult economic situation, users will begin to cut entertainment costs.

In regional terms, the Asia-Pacific region continues to be the largest market (over $70 billion in 2019). The driver countries are China and Japan. In second place, according to Newzoo, is North America, the main position is occupied by the United States (about $40 billion in 2019). At the same time, Eastern Europe ($4.2 billion), which includes the Russian Federation, is the most underdeveloped gaming market in the world. However, according to experts, it is the Russian market that is most promising both on a regional and global scale.

At the same time, the largest segment of the global computer games market is mobile games (45%, or $68.4 billion). According to analysts, this direction will only grow. In second place in terms of weight is the segment of games for consoles (32%, or $48.6 billion). Desktop solutions total 23% of the market ($34.9 billion), of which 2% are online browser games, and the remaining 21% are downloaded or boxed versions.

The choice of a monetization model for computer games (sales of physical and digital copies, microtransactions, charging a subscription fee, etc.) depends on the region and platform - console, smartphone/tablet or personal computer. In some countries, consoles are not common, in others, due to the high level of Internet piracy, in principle, the population is not ready to pay for original digital products. Also, most modern games use a hybrid approach to monetization: in combination, the methods form a flexible model, where the disadvantages of one monetization method can provide opportunities for another.

According to analysts, the income of large gaming companies or corporations, which include powerful gaming assets, according to analytical agencies, ranges from $6 to $18 billion per year. At the end of 2019, the TOP5 of public companies with gaming assets in the world are Chinese Tencent, Japanese Sony, American Apple, Microsoft Studios and Activision Blizzard. Separately, it is necessary to note indie developers - independent manufacturers of game content, which differs from high-budget games in greater originality and has no restrictions on its functionality or storyline. Breakthroughs among indie games as of July 2020 are Braid (Number None, 2008), World of Goo (2D Boy, 2008), Minecraft (Mojang, 2009), Super Meat Boy (Team Meat, 2010) and Journey (Thatgamecompany, 2012).

The gaming industry is quite specific, including in terms of investment. Until recently, it was believed that the development of computer games is mainly a creative process, so commercial success is difficult to predict. Nevertheless, the flow of investment in the sector is growing. Venture capital funds appear specializing specifically in computer games, including in the Russian Federation. According to analytical agencies, in 2019, the volume of investments in the global gaming industry amounted to $7.2 billion, including venture capital investments and IPOs (+ 6% compared to 2018). The most interesting areas for investors for July 2020, according to Digi-Capital, are technical infrastructure, multiplayer and mobile games.

As for the situation in the Russian Federation, the gaming industry is also developing here, despite the high level of piracy, the lack of support from the state and the high risks of legal uncertainty. As of July 2020, no laws have been adopted regulating the Russian gaming industry, including a project on age labeling of computer games. Only with regard to the fight against digital piracy, there is some progress. International experience in this area indicates that tougher mechanisms for bringing "pirates" to justice, educational work with content consumers and the development of new anti-piracy technologies are needed to break the situation.

Market size $145.7 billion

Video games are the most profitable sector in the entertainment industry. According to data published by Newzoo, Billboard and IFPI in the relevant markets, for 2019 the game turnover was twice the turnover of the music and video industries combined.

The video game industry has experienced steady growth in recent years, especially thanks to mobile gaming, which at this time accounts for 45 percent of its total global revenue.

Newzoo expects global gaming revenue to exceed $200 billion by 2023.

2017: US Market Volume $36 Billion

Residents USA spent $36 billion on video games in 2017, including 29.1 - on content, 4.7 - on hardware, 2.2 - on accessories.

2014: Sales growth of 21% in Spain

Main article: The video game industry in Spain

The impact of video games on the psyche

The debate about the detrimental impact of video games on the human psyche has not subsided for the first two decades of the 21st century, and some tragic events are directly associated with "cruel video games." Parents seek to limit the time of gaming sessions for their children, and federal channels talk about the pernicious effects of computer games on the child's brain.

The World Health Organization (WHO) has included video game addiction in the list of diseases and disorders, but statistics on these data are ambiguous.

Doctor of Psychological Sciences, Honored Professor of Moscow State University named after M.V. Lomonosov Alexander Georgievich Shmelev believes that for 2019, about 10-14% of people using a computer are "avid players." Nevertheless, Harvard University psychologist Maresa Orzak gives much less comforting statistics: in her opinion, among video game players, 40-80% suffer from addiction.

Despite the above factors, at the end of 2017, scientists from New York University published a study according to which it was not possible to identify the impact of violent video games on human behavior. It should be noted that almost 3,000 people took part in this experiment.

- Video games cannot cause any person to want to harm loved ones, - Leonid Gartsev, a psychotherapist at Medicine JSC, is sure. - In the history of mankind, there are a lot of cases when certain types of pastime were assessed by society as something that has an extremely harmful influence on man. In the 19th century, the same was blamed on books. In fact, video games are a relatively fresh cultural phenomenon, and therefore, they are quite wary of it. It is impossible to talk about a direct correlation between video games and any illegal behavior. On the contrary, there is a tendency to reduce delinquent behavior at the time of the release of new games. Video games are simply a means of entertainment. It is possible that a person has some kind of emotional problem that is successfully replaced by games. In other cases, it could be sublimated by alcohol, accidental sexual relations, and even watching TV - the problem is not at all in games, but in the difficulties that a person is trying to solve at their expense. As for esports competitions and their impact on the human psyche, it should be noted that there are studies that indicate that the passion for games has a positive effect on the psyche by increasing concentration of attention, improving spatial thinking, and thanks to the "teamwork" of esports, they allow the player to learn how to work in a team. In fact, it is possible to say that this has any impact only in relation to specific cases. There are, of course, examples when people spent all their free time on games, and this negatively affected their mental health.. However, if we consider these precedents on the scale of all people who are fond of games, it will become obvious that these are exclusively isolated cases and it is impossible to talk about direct correlation. Personally, I myself have a positive attitude towards video games and believe that this is another product of modern culture on a par with books and theater. I play a few hours a week.

The Impact of Computer Games

Main article: The impact of computer games

See also

• Computer and video games (Russian market)
• Mobile games (Russian market)
• Mobile Games (Global Market)
• Computer and Video Games (China Market)
• Computer and Video Games (Indian Market)

Notes