Despite a sluggish 2022, the video gaming industry is soaring to new heights this year as more high-profile games and next-gen consoles hit the market. In fact, market stats show that 2023 might be an inflection year for the gaming industry provided that game publishers continue dropping new “triple-A games”, which are considered the best genre.
In 2023, game development teams are noticing an improvement in efficiency and better productivity. Additionally, titles that got pushed back for strategic reasons in 2022 seem more likely to be launched this year. There’s an abundance of quality gaming content on the market, making many experts optimistic about strong market growth in 2023.
Key Reasons for Growth
There are several key factors that are most likely to spur in the growth of the video gaming market in 2023. These factors also influence growth beyond the video gaming market, as most gamers are highly likely to play online casinos for real money in their spare time. In fact, 40% of video game players on the global market choose titles that have gambling-like features.
Some of the main factors spurring growth in the video gaming market include:
More new games and next-generation consoles
New next-generation consoles will become available to more players in 2023, as manufacturers have managed to ease supply chain issues encountered in 2022. For instance, a major video game console manufacturer is expecting to have sold over 20 million units by the first half of the year.
The increase of next-generation gaming consoles in the market will in turn contribute to the growth of triple-A games in the market. Most third-party publishers strategically pushed back their game launches with disruptions in the global supply chain, but market experts expect new titles launched to bounce back in 2023.
Regulatory Shift in China
In 2021, China’s government decided to restrict players under 18 from playing games during school nights and play for only an hour on holidays and weekends. The move came in a bid to curb gaming addiction problems among young people. However, that’s likely to change in 2023.
At the moment, the impact of China’s regulatory measures is waning and the gaming market in the region is gradually recovering as the gaming restrictions on minors normalize. China already approved several licenses for new games last September, which is a good sign that the regulatory environment is turning a new leaf.
Defense in a potential recession
While recessions can be devastating, they aren’t always bad for the video game market. Staying at home playing Call of Duty or killing zombies is always cheaper than going out with your friends, even with the investment of buying the games and consoles. That gives investors the chance to accumulate holdings that offer attractive valuations early.
Despite the general optimism about the growth of the video game market in 2023, there are several factors that might mitigate the growth. These factors include relying on proven content instead of developing new games to sustain long-term growth. Of course, there’s a robust pipeline of video games that have demonstrated creativity in 2023, but they still fall short.
The slowing mobile market is also a major concern in the growth of the video game market in 2023. Despite commanding a huge market share with millions of users, the mobile gaming market seems to have reached a saturation level, especially in Korea, China, Japan, and the US. That shows that the expenditure per player will be a key driver for growth and that’s why market experts are emphasizing quality, innovative content.