ReportShorooq Partners
Gametech Report: Global & MENAP Outlook Q3 2023
1 Sept 202336 pages~1 min full read
The global gaming market reached a valuation exceeding $250 billion with a 9.9% CAGR, even as the industry underwent a period of operational recalibration resulting in over 2,000 layoffs in Q3 2023.
The MENA region remains a growth outlier, expanding 6.9% year-over-year to reach a $5 billion market size, supported by a demographic where 70% of the population is under 30.
Global venture capital investment returned to pre-pandemic levels with $454 million secured in Q3 2023, with Jordan emerging as a regional hub by capturing 30% of all MENA-based deals.
In Egypt, the region's largest market by population, 60% of top-performing titles are casual or hyper-casual games, though 40% of the gamer base remains unbanked and requires alternative payment solutions.
Generative AI is projected to impact over 50% of the game development process within the next decade.
Industry players are strategically pivoting toward emerging markets to mitigate the rising costs of talent in Western territories.
This analysis examines the state of the global and MENAP (Middle East, North Africa, and Pakistan) gaming sectors during the third quarter of 2023. The primary thesis suggests that while the global industry is undergoing a period of "cautious recalibration" characterized by significant layoffs and a shift toward profitability, the MENAP region remains a resilient growth outlier. The scope covers global investment trends, game engine pricing shifts, and emerging market demographics, with specific deep dives into the Egyptian and Jordanian markets.
Key findings indicate that the global gaming market exceeded $250 billion with a 9.9% CAGR, yet Q3 2023 saw over 2,000 industry layoffs driven by M&A activity and a focus on operational efficiency. Despite these global headwinds, the MENA region grew by 6.9% year-over-year, reaching a market size of $5 billion. This growth is fueled by a youthful demographic where 70% of the population is under 30. In Egypt, the largest regional market by population, 60% of top-performing games are casual or hyper-casual, though a significant challenge remains as 40% of gamers are unbanked, necessitating innovation in fintech and alternative payment infrastructures.
The investment landscape shows a return to pre-pandemic levels, with $454 million in global venture capital secured in Q3, primarily in early-stage deals. Asia led transaction volume with 39 deals, while Jordan emerged as a regional leader in funding, securing 30% of MENA deals. The report concludes that the future of the industry will be defined by the integration of Generative AI—expected to impact over 50% of the development process within a decade—and a strategic pivot toward emerging markets to offset rising talent costs in Western territories. Methodology relies on data from partners including AppMagic and Konvoy, alongside internal venture capital tracking.
