LONDON, May 15, 2024
/PRNewswire/ -- New research from Omdia predicts a challenging
2024, with overall games revenue across software, hardware, and
advertising staying flat at $249bn.
Despite this, Omdia remains optimistic about the industry's
long-term prospects, anticipating a resurgence in growth from 2025
onwards.
The plateau in 2024 starkly contrasts with the explosive
pandemic-induced growth seen in recent years. However, it aligns
with an expected adjustment period as the industry recalibrates
following an unprecedented growth spurt. There is optimism on the
horizon, with the games market expected to reach $304bn in 2028, according to the Total Games
Market Value Dashboard, which aggregates Omdia's extensive games
forecast data and provides a comprehensive view of the global
landscape.
The subdued growth projections for 2024 can be attributed to
multiple factors, including the absence of high-value blockbuster
releases, sales of dedicated games hardware tapering off (as PS5
and Xbox Series enter the decline phase of their lifecycle), and
general inflationary pressures impacting consumer spending.
Mobile in-game advertising acts as a stabilizing force in 2024,
preventing an overall market decline. It is poised to continue
driving the total market with strong double-digit year-on-year
growth projected throughout the forecast period. Highlighting its
increasing significance, advertising's share of the total market is
expected to rise from 18% in 2024 to 27% in 2028.
Within this period, games subscriptions will represent
approximately 10% of total consumer spend on games, with gradual
growth expected. However, they are not predicted to dominate the
industry in the same way that they do in music and video.
Additionally, while full-game sales revenues will fluctuate
significantly based on major releases and console launches,
microtransactions and DLC revenues are forecast to grow reliably,
albeit slowly.
"Looking ahead, we anticipate a resurgence in growth from 2025
onwards thanks to the revitalized slate of blockbuster titles
(including GTA VI), Nintendo beginning a new console cycle,
as well as continued strong growth of in-game advertising,"
commented George Jijiashvili, Senior Principal Analyst at Omdia.
"Meanwhile, the growth in mobile games will be driven by its return
to pre-pandemic growth trends, coupled with an improved
macroeconomic outlook," added Jijiashvili.
ABOUT OMDIA:
Omdia, part of Informa Tech, is a technology research and
advisory group. Our deep knowledge of tech markets combined with
our actionable insights empower organizations to make smart growth
decisions.
Fasiha Khan
Fasiha.khan@omdia.com
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SOURCE Omdia