Market (Overall)·Updated Mar 17, 2026 by Newzoo
Report · January 1, 2021
Published by Newzoo
The global games market experienced unprecedented acceleration between February 2020 and May 2021, driven by the unique social and economic conditions of the COVID-19 pandemic. This period saw the addition of 173 million new or returning players, bringing the global total to nearly 3 billion. While veteran players—those active before the pandemic—accounted for the majority of market growth by increasing their playtime by 42%, new and returning players represent a significant demographic shift, with 53% of this group being female. The industry reached $175.8$ billion in revenue in 2021, with mobile gaming accounting for 52% of the total. Projections indicate a compound annual growth rate of 8.7%, with the market expected to surpass $218 billion by 2024. Key drivers for this continued expansion include the rise of gaming subscription services, which provide low-barrier entry points for new players, and the evolution of games into social hubs or "metaverses." These persistent virtual worlds facilitate non-gaming experiences such as virtual concerts and identity expression through avatars, effectively competing with traditional social media. Engagement is increasingly defined by content consumption beyond active play. Live-streaming audiences are expected to reach 920 million by 2024, and players report a higher intent to continue watching gaming content than to increase their spending or playtime. Furthermore, the industry is moving toward a platform-agnostic future. Cross-platform play and cloud gaming are dissolving traditional hardware barriers, a trend reinforced by global semiconductor shortages and game development delays that have hampered the console and PC segments more than mobile. This analysis is based on a Newzoo study commissioned by Google, utilizing market sizing models and a survey of over 16,900 respondents across 16 countries in North America, Latin America, Europe, the Middle East, Africa, and Asia-Pacific. The findings suggest that while new players may be less "sticky" than veterans, long-term retention will depend on fostering a holistic gaming culture that integrates social interaction, viewership, and multi-platform accessibility.
# Foreword We are approaching the end of 2021, and while the COVID-19 pandemic isn’t over yet, we can look back and reflect on a strong period for the games market. The unique circumstances of the pandemic months deeply impacted the global games market, shattering player count, revenues, and growth records as gaming brought joy, companionship, and relief to the world’s 3 billion players. COVID-19 also accelerated trends shaping how people engage with their favorite games. As vaccines become more widely available, it’s time to start thinking about the future. What will be this period’s lasting impact on the games market? What intentions do veteran, new, and returning players have for the future? Which consumer trends surfaced during this period, which trends accelerated, and which slowed down or simply disappeared? And are these changes temporary or permanent? This report is the first in a series of five - one global and four regional - in which we aim to answer these questions. The four regional reports cover North America, Latin America, Europe, Middle East & Africa and Asia. The series is the result of a study conducted by Newzoo, covering the period between February 2020 and May 2021, and based on both market analysis and consumer insights. We define veteran players as those who were playing before February 2020, new players are those who started playing for the first time between February 2020 and May 2021, and returning players are those who stopped playing (at least once) before February 2020 and started playing between February 2020 and May 2021.
This year is witnessing intense worldwide growth in the gaming market. The world’s nearly 3 billion players will spend a combined $\$ 175.8$ billion on games. Mobile game revenues, at $\$ 90.7$ billion, account for $52 \%$ of the global market. 2021’s growth continues last year’s success. In 2020 the games market grew $+ 2 3 . 1 \%$ year over year, to $\$ 177.8$ billion. Globally, the market will grow with a CAGR (2019 to 2024) of $+ 8 . 7 \%$ to reach $\$ 218.7$ billion in 2024, passing the $\$ 200$ billion threshold in 2023. A total of 173 million new and previously lapsed players flocked to gaming in 2020, while veteran players played more than ever. Our study found that an impressive $20 \%$ of players were either new or returning players ( $1 5 \%$ of the players were lapsed gamers reactivating, $5 \%$ were new to gaming). Interestingly, almost $53 \%$ of these new or returning players
are female, compared to a $46 \%$ female share among veteran players. The months between February 2020 and May 2021 accelerated toward a player audience equally split by gender. Expected future play behavior for new and returning female players is lower than their play time between February 2020 and May 2021 - but the majority of female players expect to stick around. This is particularly true of mobile games, which our respondents expect to play for similar amounts of time in the second half of 2021 and beyond. On a global basis, the largest group of players during the period of study were veteran gamers who increased their playtime (by $42 \%$ globally). As this graphic shows (Fig.5-pag7), most of the growth in the games market came from veterans # A total of 173 million new and previously lapsed players flocked to gaming in 2020, while veteran players played more than ever
- C Veterans that played more - Veterans that played equally - Veterans that play less - New players - Returning players 78% of veteran gamers spend on games versus 73% of new or returning players. Before developers get carried away by the influx of new players, your retention strategy should aim to retain all players investing their newfound free time into playing more. Veteran players are also more likely to spend money on games than new or returning players, but only by a small amount: $78 \%$ of veteran gamers spend on games versus $73 \%$ of new or returning players. Before developers get carried away by the influx of new players, your retention strategy should aim to retain all players. There are opportunities in engaging all groups. The gaming market’s recent evolution suggests dual themes for future game design choices. The next section focuses on novel themes -- new ways players engage with gaming content. Technologies and services haven’t necessarily changed, but the way consumers use these technologies or services certainly has.
# Gaming subscription services provide a new entry point into gaming for veteran and new players 2021 was a turning point for gaming subscription services (services that offer access to software content and/or online gaming servers without providing platform/hardware access like a cloud gaming service). Game subscription monetization is nearly the opposite of the freeto-play model: it offers access to a selection of premium games for a fixed monthly fee, instead of freeto-play’s thousands of games that encourage players to spend freely on in-game purchases. Gaming subscriptions rose in popularity during the pandemic, as gamers sought to stretch their budgets while still playing a wide variety of titles. Platform subscriptions are the secondmost popular game spend category for PC, console, and cloud players in North America, Latin America, and Europe, Middle East & Africa, full games being the most popular. Subscriptions also offer immediate access to libraries of games for new and returning players. Our research found that new console, PC, and cloud players spent almost equal amounts of their monthly budget on game subscriptions (just $20 \%$ more on full games), whereas veteran and returning players spent nearly $70 \%$ more of their monthly budget on full games than on subscriptions. Right now, subscriptions are most popular on consoles for access to services such as Xbox Game Pass, PlayStation Now, and Nintendo Switch Online; consumers will spend $\$ 7.5$ billion and are projected to be the fastest-growing spending category between 2019 and 2024. Players’ willingness to spend on mobile game subscriptions is also reflected in their willingness to spend between $7 \%$ to $9 \%$ of their mobile gaming budget on a premium, ad-free experience. Developers, publishers, and platforms alike can offer an alternative for those players who are willing to spend for an adfree experience, while those that don’t can continue to use the apps with ads. The crumbling barriers between platforms (due to crossplatform play) has the happy result that mobile developers can publish on mobile stores while also joining a subscription services on console and PC. Furthermore, the continued shortage of high-end gaming devices should push developers even more towards crossplatform games to avoid limiting their potential audience by committing to a single platform. To sum up: whether you’re developing for mobile, PC, and/or console, you should be considering offering your game through a subscription service as part of your distribution and monetization strategies.
# Using games to socialize Technology is blurring the lines between the gaming and nongaming experience, and potentially expanding these gaming worlds to new audiences. These developments are changing how we express ourselves, how we connect with each other – and/ or with brands – and even our expectations of what a gaming experience can be. Gaming has always been an inherently social experience. Arcades and console couch co-op games offer early examples of the value of social gaming. Players have long congregated, physically and digitally, to chat, compete, and discuss strategies and lore with like-minded fans. At its core, gaming is a universal language that connects people through shared passions, objectives, and experiences. Gaming’s interactive nature in tandem with the immersive nature of game worlds provides a social experience that’s distinct from social media apps. During the months where real-life interactions were limited, games helped fulfill people’s intrinsic need to socialize. In fact, successful games like Fortnite prioritize the social experience as highly as gameplay.
This analysis explores the trajectory of the global games, esports, and mobile markets for 2021, forecasting a year of sustained engagement despite the easing of pandemic-related lockdowns. The primary thesis suggests that while the explosive growth of 2020 will normalize, gaming habits have become deeply ingrained, positioning the global market to reach 2.8 billion players and $189.3 billion in revenue. Growth is expected to be particularly robust in emerging markets such as Southeast Asia and the Middle East. Key findings highlight a significant shift toward platform agnosticism and the "metaverse." Cloud gaming is projected to surpass $1 billion in annual revenue for the first time, driven by high-fidelity experiences like Cyberpunk 2077 that bypass expensive hardware requirements. Simultaneously, games are evolving into social platforms for non-gaming events, exemplified by virtual concerts in Fortnite and Roblox. In the hardware sector, supply chain disruptions will continue to limit next-generation console availability, while AAA software delays are expected as the long-term impacts of remote development manifest. The mobile segment faces a pivotal transition due to Apple’s removal of the Identifier for Advertisers (IDFA), which is expected to disrupt traditional user acquisition and push publishers toward IP-based games and creative marketing. Despite these hurdles, 5G penetration is set to triple, with 16% of active smartphones becoming 5G-ready by year-end. Additionally, Chinese developers are increasingly exporting high-budget, immersive mobile experiences like Genshin Impact to Western markets. In the esports and streaming sectors, mobile titles are beginning to outperform traditional PC giants in viewership. Organizations are diversifying into lifestyle brands and content-creator collectives to mitigate risk. Furthermore, the industry is placing a heightened focus on social responsibility, with major stakeholders collaborating to reduce toxicity and improve diversity and inclusion in response to growing consumer demand for representative content.
This analysis outlines the primary trends shaping the global games, esports, and mobile markets for 2021. The central thesis posits that while the COVID-19 pandemic accelerated engagement and spending, these behaviors have become permanent habits that will sustain market growth even as lockdowns ease. By the end of 2021, the global games market is projected to reach $189.3 billion in revenue, supported by a player base of 2.8 billion people, with significant growth emerging from Southeast Asia and the Middle East. The scope of the findings covers PC, console, and mobile segments across major global regions, including North America, Europe, China, and emerging markets. Key data points include the rise of cloud gaming, which is expected to surpass $1 billion in annual revenue for the first time, and the rapid expansion of 5G technology, with 5G-ready active smartphones forecasted to grow from 5% in 2020 to 16% (700 million units) by the end of 2021. In the esports sector, mobile titles like PUBG Mobile and Garena Free Fire are now challenging traditional PC giants in viewership, signaling a shift toward mobile-first competitive gaming. Methodologically, the findings are derived from proprietary market models and consumer research. The analysis highlights several structural shifts: the evolution of games into "metaverse" social platforms for non-gaming events, the disruption of mobile marketing due to the removal of Apple’s Identifier for Advertisers (IDFA), and the increasing pressure on traditional app store revenue-share models. Furthermore, the industry is noted to be prioritizing diversity, inclusion, and reduced toxicity in response to social movements and player demand. Ultimately, the convergence of platforms and the expansion of gaming IP into broader entertainment media are identified as the defining characteristics of the industry's trajectory.
This analysis examines the shifting landscape of the global gaming industry following the COVID-19 pandemic, focusing on player motivations, monetization, and community engagement. The primary thesis asserts that the pandemic catalyzed a permanent expansion of the gaming audience, introducing a "new gamer" cohort that differs significantly from existing players in demographics and behavior. While existing players increased their time spent gaming, they became less likely to spend money, whereas new players emerged as a high-value segment with a greater propensity for in-game purchases. The findings are based on a July 2020 survey of 13,246 mobile gamers across nine markets, including the United States, United Kingdom, Germany, and South Korea. Data indicates that the mobile gaming audience grew by 28 million in the US and 8.6 million in the UK. In Western markets, these new players are significantly younger than existing ones and gravitate toward "core" genres like shooters and strategy rather than casual puzzles. Conversely, South Korea proved an anomaly, where new gamers are older and prefer casual titles. Across all regions, new gamers play more hours per week than veterans and are more open to social features, such as multiplayer modes and in-game chatting. The industry saw a massive shift toward digital discovery and community. Live-streaming platforms experienced record growth, with Facebook Gaming surpassing one billion hours watched in Q3 2020. Furthermore, 70% of consumers reported increased mobile device usage, making mobile-first discovery essential. A critical finding for marketers is the rising importance of brand familiarity; less than a quarter of players in the US, UK, and Germany tried games they had never heard of, suggesting that title recognition and IP strength are now as vital for mobile games as they are for the console market. To navigate these shifts, the analysis recommends a mixed monetization model that balances ad-supported content with in-app purchases to capture diverse spending habits. It concludes that developers must embrace "always-on" marketing and community management, as players are increasingly seeking engagement through social media groups and streaming partnerships outside of the game client itself.
The 2020 Global Games Market Report provides a comprehensive analysis of the video game industry during a landmark year defined by the COVID-19 pandemic and the transition to next-generation consoles. The central thesis posits that gaming has evolved beyond simple entertainment to become a primary social network and a precursor to the "metaverse," with interactive virtual spaces increasingly replacing traditional social media for younger generations. Key findings indicate that the global games market was projected to generate $159.3 billion in 2020, representing a 9.3% year-on-year increase. Mobile gaming remained the largest segment, accounting for $77.2 billion (48% of the market), driven by low barriers to entry and the rise of hypercasual titles. Console and PC segments followed with $45.2 billion and $36.9 billion respectively. Geographically, the Asia-Pacific region dominated the landscape, generating $78.4 billion—nearly half of all global revenues—while the Middle East and Africa emerged as the fastest-growing region. By the end of 2020, the global player base was expected to reach 2.7 billion, with forecasts suggesting the market would surpass $200 billion and 3 billion players by 2023. The scope of the analysis covers 30 key markets representing over 90% of global revenues, with data segmented by region (Asia-Pacific, North America, Europe, Latin America, and Middle East/Africa) and platform. Methodology relies on a top-down predictive model integrating macroeconomic data, financial reports from over 100 public companies, and primary consumer research involving 62,500 respondents. The report concludes that while lockdown measures provided a short-term surge in engagement and revenue, the industry faces long-term shifts toward platform-agnostic cloud gaming and subscription models. Additionally, it highlights the successful globalization of Chinese gaming firms, which pivoted to international markets following domestic regulatory freezes, now leading the industry in mobile development and cross-border investment.