Video Games Market Set for Resurgence in 2023, Propelled by Console Sales Surge

The global video games market is poised for a notable resurgence in 2023, driven by robust console sales including the popular Sony PlayStation 5, according to gaming market research firm Newzoo.
Epic video game FortniteIn a recent report, Newzoo forecasts a 2.6 percent increase in industry revenue, amounting to $187.7 billion for the year, primarily fueled by a remarkable 7.4 percent surge in console sales.

After experiencing a dip of 5 percent in gaming revenue during 2022, industry players are eagerly anticipating a rebound as highly anticipated delayed titles are launched throughout the year. This momentum is expected to continue into the second half of the year, and Newzoo analyst Tom Wijman attributes this upswing to a combination of factors, including the release of new titles and the successful alignment of console supply with demand.

Sony, the creator of the widely acclaimed PlayStation series, has projected the sale of a record-breaking 25 million units of the PlayStation 5 consoles for this year. This forecast is buoyed by the gradual resolution of supply chain challenges that had previously hindered production.

Market research firm Circana offers further insights into the trends shaping the industry. U.S. consumer spending on video game hardware witnessed a remarkable 23 percent surge in the first half of 2023. However, spending on video game content remained steady during this period, with gamers gravitating toward established franchises like Activision Blizzard’s “Call of Duty”.

Despite challenges posed by evolving privacy policies of tech giants Apple and Google, Newzoo anticipates that mobile games will continue to hold a significant share of global gaming revenues in 2023, accounting for nearly 50 percent of the total.

The landscape of gaming is also undergoing transformation with the rise of cloud gaming. This innovative approach enables players to stream titles directly on devices regardless of their technical specifications. Newzoo predicts that by the end of the year, cloud gaming could amass an impressive 43.1 million paying users, underscoring the evolving dynamics of how gamers engage with and experience their favorite titles.

As the global video games market gears up for a resurgence, players in the industry are capitalizing on innovation, enduring franchises, and technological advancements to pave the way for an exciting era of growth and engagement among gaming enthusiasts worldwide.