Market (Overall)

Reports in the Market (Overall) category.

297 documents

State of the Game Industry (2023)

Presented by GDC C Game Developer This past year has been a time of change and opportunity. Studios and companies are working towards a new normal, while developers have their eye on how to reshape the game industry and their role within it. The metaverse has become more than a buzzword, as have the topics of unionization and the Great Resignation. This is all happening under the umbrella of increased studio conglomeration, which could change the shape of the video game industry as we know it.

market-analysis

GDCJan 2023

Report

Gaming Spotlight 2023: The Year in Review

The 2023 Gaming Spotlight provides a comprehensive analysis of the global gaming landscape, focusing on market shifts across mobile, PC, and console platforms during the first half of 2023. Utilizing data from data.ai and IDC, the analysis highlights that while mobile remains the largest market opportunity, it faces a projected 2% year-over-year decline in consumer spend to $108 billion. This softening is attributed to macroeconomic instability, privacy regulations like Apple’s App Tracking Transparency (ATT), and stricter regulations on adolescent gaming in China. In contrast, home console and PC/Mac spending are expected to rise by 3% and 4% respectively, driven by increased hardware availability and subscription-based revenue. Geographically, the Asia-Pacific region remains a primary revenue driver, with South Korea showing significant market share gains. The report identifies a shift in handheld gaming; while the Nintendo Switch Lite faces declining interest, newer devices like the Steam Deck are gaining traction, albeit with distinct demographic profiles. Mobile gaming success in H1 2023 was defined by titles like Monopoly GO and Honkai: Star Rail, which leveraged strong intellectual property and sophisticated monetization strategies, such as high-value in-app purchases and social engagement features. A significant portion of the analysis examines user acquisition and monetization challenges. Findings indicate that US gamer sentiment toward in-game advertising is deteriorating, with negative sentiment toward banner and video ads rising significantly. Rewarded video remains the most tolerated format due to its clear value exchange, though even its popularity has dipped. The report concludes that as acquisition costs rise and tracking becomes more difficult, publishers must optimize creative strategies—particularly through playable ads for action genres—and diversify monetization models beyond traditional ads to include subscriptions and battle passes to maintain growth in an increasingly competitive and privacy-conscious environment.

market-analysis monetization in-game-advertising+2

data.aiJan 2023

Report

State of Game Development & Design Report 2023

The 2023 State of Game Development & Design Report provides a comprehensive analysis of the current trends, technological preferences, and operational hurdles facing the global gaming industry. Based on an annual survey of creators ranging from indie developers to AAA studios, the findings highlight a significant shift in industry priorities. While funding was previously the primary concern for developers, talent acquisition and retention have emerged as the leading challenge in 2023, cited by 32% of respondents. This labor shortage is compounded by development velocity issues, particularly for AAA studios, where 49% of respondents identify time-related bottlenecks—such as lengthy build times—as their greatest obstacle. The geographic and sectoral scope of the data reveals a consolidation toward established markets and platforms. Despite previous forecasts suggesting a surge in immersive technology, interest in AR and VR has declined sharply, with only 13% of developers currently working on VR projects compared to 28% the previous year. PC remains the dominant platform, utilized by 90% of developers, while 45% of studios now opt for self-publishing, frequently utilizing Steam for distribution. Technologically, the industry shows a clear preference for specific toolsets. Unreal Engine remains the most popular game engine at 57%, while Unity saw a significant drop in usage. Perforce Helix Core has solidified its position as the industry standard for version control, used by 73% of respondents. Looking forward, the report identifies generative AI as the most anticipated technological advancement, with creators expecting it to revolutionize the creative process. Simultaneously, there is a growing industry-wide push for improved work-life balance, reduced "crunch" culture, and a shift away from profit-driven monetization models in favor of original gameplay experiences.

market-analysis game-development employment+1

PerforceJan 2023

Report

Game Development Report 2023

The global game development landscape is currently undergoing a fundamental transition driven by escalating project complexity and the widespread adoption of live service models. With 95% of studios now pursuing or planning live service strategies, the industry faces a critical mismatch between traditional production pipelines and the need for rapid, iterative release cycles. Rising development costs affect 77% of studios, fueled by consumer demands for AAA quality and the technical debt inherent in maintaining custom middleware. Consequently, 88% of developers are actively seeking new technological solutions to address systemic inefficiencies, particularly regarding long build times and fragmented collaborative 3D art pipelines. To mitigate these challenges, there is a significant shift toward a "buy vs. build" philosophy, with 65% of studios prioritizing off-the-shelf tools over proprietary systems to accelerate time-to-market. Modern development is increasingly adopting SaaS-inspired DevOps practices, modular architectures, and automated testing to improve developer velocity and ensure the stability required for live operations. These infrastructure investments are viewed as vital business drivers, as technical outages or defects in a live service environment result in immediate player churn and revenue loss. The industry's future growth depends on the integration of emerging technologies such as cloud infrastructure and artificial intelligence to streamline content creation and enhance player experiences. As market saturation and production risks intensify, the move toward agile, software-centric engineering practices represents a necessary departure from legacy norms. Studios that successfully leverage these innovations to reduce technical debt and improve production sophistication are positioned to become the next generation of category leaders in an increasingly competitive global market.

market-analysis live-ops monetization+1

Rendered VCJan 2023

Report

Gaming Report 2023

The global gaming industry in 2023 is defined by a strategic shift toward development efficiency and long-term player retention. Studios are increasingly prioritizing speed to market, with 62% of indie developers now shipping titles in under a year. This acceleration is largely fueled by the widespread adoption of premade assets and a reduction in average developer hours. While large studios are expanding their reach through a 16% increase in multiplatform development, indie studios remain predominantly focused on single-platform desktop releases. Simultaneously, there is a notable pivot toward mobile production, where global daily active users have risen by 8% despite a slight decline in the number of paying players. Monetization strategies are evolving to address this shift in player behavior, moving toward a balanced model where ad-supported structures and in-app purchases hold nearly equal weight. To ensure financial viability, 70% of studios now integrate monetization and LiveOps within the first 30 days of development. This early focus on the product lifecycle has contributed to a 33% increase in the average game lifespan, supported by frequent core content updates and a 27% rise in battle pass adoption. Emerging markets, particularly in regions like Kazakhstan, are driving a 15.7% year-over-year increase in total game builds, signaling a lower barrier to entry for new creators. Looking forward, the industry is embracing generative AI and user-generated content to streamline workflows and deepen engagement. The rise of "hybrid-casual" mobile games reflects a broader trend of blending accessible mechanics with sophisticated retention loops. Success in the current economic climate requires rigorous scope control and a transition from simple user acquisition to the maintenance of long-term player relationships. By leveraging achievements, community building, and real-time operational updates, developers are successfully extending the relevance and profitability of their titles in an increasingly competitive global market.

market-analysis global mobile+2

UnityJan 2023

Financial

H1'23 Gaming Deals Report: Navigating Turbulence

The analysis evaluates global gaming‑sector deal activity for the first half of 2023, contrasting it with the same periods in 2020‑2022 to gauge the impact of a deteriorating macro‑economic environment. Private capital contracted sharply, delivering only $1.5 billion across 239 transactions—a 24 % drop in deal count and a five‑fold reduction in total value relative to H1 2022, with early‑stage pre‑seed and seed rounds bearing the brunt of the decline. Late‑stage venture financing also cooled, as investors faced limited exit pathways and softer valuations, resulting in just 12 late‑stage deals and a cumulative $40 million in capital. Mergers and acquisitions mirrored the private‑investment slump, with deal volume falling to 71 closures and aggregate value collapsing to $0.9 billion, a 31‑fold decrease versus the prior year. Strategic buyers shifted focus to internal restructuring and asset carve‑outs, while public‑market activity remained muted; only 30 listings or PIPEs were recorded, though U.S. markets showed tentative recovery compared with persistently weak European activity. Geographically, North America dominated early‑stage financing (24 deals, $138.7 million) and Western Europe contributed a modest share, while Eastern Europe, MENA and Latin America saw limited participation. Corporate investors executed a comparable number of deals to 2022 (15 versus 17) but at markedly lower total spend, reflecting a strategic pivot toward cost optimisation. Data derive from InvestGame’s closed‑transaction database, supplemented by S&P Capital IQ, and exclude gambling, betting and non‑gaming entities. The scope covers global gaming firms across PC, console, mobile and emerging VR/AR platforms, tracking deal types from seed rounds to control‑changing M&As for the period Q1‑Q2 2023.

investment market-analysis global

InvestGameJan 2023

Report

The Future of NPCs

This analysis explores the evolving role of non-playable characters (NPCs) in the video game industry, arguing that while graphical and narrative technologies have advanced, NPC interactivity has remained stagnant. The central thesis posits that integrating advanced AI—specifically large language models and machine learning—is essential for maintaining player immersion and driving commercial growth. By moving away from static dialogue trees toward dynamic, situational awareness, developers can address long-standing player frustrations regarding repetitive behaviors and scripted limitations. Key findings indicate a significant market demand for sophisticated AI integration. Data shows that 84% of gamers view NPCs as vital to their experience, yet 52% are frustrated by repetitive dialogue. The transition to advanced AI NPCs appears to offer a clear financial incentive: 81% of players expressed a willingness to pay more for games featuring intelligent characters, and 79% stated they would be more likely to purchase a title with such features. Furthermore, 88% of respondents believe advanced AI would improve overall gameplay and immersion, suggesting that these technologies could increase player retention and session length. The scope of the research focuses on 1,002 U.S.-based gamers aged 16 to 50 who play at least five to eight hours per week across PC, console, mobile, and VR platforms. Methodology involved a 20-minute survey conducted by Bryter Research, which included a demonstration of generative AI NPC capabilities to gauge participant reactions. The findings suggest that while role-playing and sandbox genres stand to benefit most, there is a near-unanimous consensus (99%) among surveyed gamers that advanced AI NPCs represent a positive value add for the industry.

ai player-behavior game-design+1

Inworld AIJan 2023

Report

Australian Game Development Survey FY 2023

The Australian Game Development Survey FY2023 reveals a maturing industry experiencing significant growth in both revenue and employment. Total income generated by local studios reached $345.5 million, a 21% increase over the previous year, while the workforce expanded by 17% to 2,458 full-time equivalent employees. This growth is largely attributed to increased federal and state government support, including the Digital Games Tax Offset (DGTO), which has bolstered developer confidence and attracted international interest. The sector is heavily export-oriented, with 87% of revenue derived from markets outside of Australia. While the industry is diversifying, it remains concentrated in the eastern states, with Victoria housing 29% of studios and 41% of the workforce. The ecosystem is characterized by a mix of established and emerging entities; 32% of studios have operated for over a decade, yet 45% are five years old or less, and 29% are currently developing their first title. Small businesses dominate the landscape, with 79% of respondents employing fewer than 20 people. Despite this upward trajectory, the industry faces notable headwinds. The primary challenges identified include difficulty hiring staff with specialized technical skills, attracting early-stage development funding, and securing international publishing deals amidst tightening global economic conditions. Nevertheless, 63% of studios intend to hire more staff in the coming year, and 68% predict continued income growth. The findings are based on a survey of 111 Australian game development studios conducted by Bond University on behalf of the Interactive Games & Entertainment Association (IGEA). The data covers the financial year from July 1, 2022, to June 30, 2023, and includes metrics on gender diversity, which showed an increase in the representation of women and gender-diverse individuals within the workforce.

market-analysis employment investment+1

Interactive Games and Entertainment AssociationJan 2023

Gaming Spotlight 2023: The Year in Review

State of Game Development & Design Report 2023

Game Development Report 2023

Gaming Report 2023

H1'23 Gaming Deals Report: Navigating Turbulence

The Future of NPCs

Australian Game Development Survey FY 2023

Market (Overall)

State of the Game Industry (2023)

Games & Interactive Salary and Satisfaction Survey (2023)

InvestGame H1’23 Report

From Hyper to Hybrid in 2023 (2023)

InvestGame Q1’23 Report