The gaming market still has good prospects

In 2022, for the first time in history, the value of the global gaming market will exceed $200 billion, and in 2024 it will reach $223 billion, according to Newzoo’s latest report. This would mean an average annual momentum of 6%. In turn, the global number of gamers is expected to surpass the three billion mark this year.

– Our industry continues to grow and has long overtaken other sectors of the entertainment market, such as movies, books and music. And new technologies entering the market, such as virtual reality and augmented reality, provide new opportunities for growth – says Paweł Czapla, president of the Plot Twist studio.

What trends can we observe

This is good news for the industry. Worse, however, is not to count on dramatic increases, such as after the outbreak of a pandemic. This is well illustrated by Sensor Tower’s poor mobile game spending data for the first quarter of 2022 (a 7% decline from last year’s high base). However, this does not change the fact that mobile games still dominate the market and this trend will not change in the coming years.

– The market for mobile games will grow, but it will probably undergo other changes. There will be new solutions, new modes – says Tomasz Mazur, President of Forestlight Games. He adds that it will be more and more difficult for the little ones to break through with their productions. “User acquisition” plays and will continue to play an increasingly important role, and it costs more and more money, he points out.

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What are the trends in the gaming industry today?

– The two most important are the development of cloud gaming and subscription models. Cloud gaming allows you to play new productions without investing in expensive PC equipment. If the business models are adapted to these services and the gamer has access to a huge library of games, traditional sales models could become less important – says Jakub Radkowski, board member of Different Tales. Michał Gembicki of Klabater’s board echoes this.

– Sales of the subscription model are breaking into the video game market. The pioneer here is, of course, Microsoft with its Gamepass program, but other industry giants are constantly following it – he points out. Successive producers and publishers announce their subscription game counterparts. Major players outside the industry are also joining the race in this segment: Amazon and Netflix.

– The coming years will bring huge changes to the premium game buying model and could be for the premium video game industry what the growth of streaming services has been for the movie distribution industry – says Gembicki.


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The market is maturing

The days of gamers jumping on every new production are a thing of the past.

– Now players expect an interesting and polished game even in the early stages of the project. A game free of bugs that spoil the gameplay – emphasizes Damian Szymański, president of Render Cube.

Globalization and the maturing of the market are also reflected in a trend towards consolidation.

– Huge producer and publishing groups are formed, whose growth model is continuous acquisition – says Gembicki. He points out that in Europe such a group is formed, among others, by Embrassant. The Chinese Tencent is also active in this area, and in the United States, the market around its platform is being consolidated by Microsoft through spectacular acquisitions.

The biggest gaming markets for years have been China and the United States. Their domination will continue. If we also take into account the other Asian countries, this continent accounts for almost half of the total global spending on games.

Around 80 gaming entities are listed on the Warsaw Stock Exchange (main market and NewConnect). Investors are spoiled for choice. According to experts, there are currently many attractive opportunities in this industry – especially as valuations have fallen sharply over the past dozen months.

So far, however, there has been no improvement in the attitude towards the industry. In March 2022, a new WIG-gry index was launched on the WSE, comprising 19 companies. Since April, it has fallen 31%, or 17 percentage points. stronger than the wide WIG.

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