Market Wire: December 5, 2022

Key insights

7 takeaways

01
Mobile gaming revenue is cooling after its pandemic-era peak, with worldwide consumer spend dropping from a high of $7.73 billion in July 2021 to $6.5 billion in September 2022, though it remains above pre-pandemic levels.
02
Apple and Google named Apex Legends Mobile their game of the year, a decision driven by the title's ability to showcase high-end hardware performance and avoid the negative PR associated with aggressive monetization seen in competitors like Diablo Immortal.
03
The gaming industry saw significant consolidation in 2022, marked by major acquisitions including Microsoft’s bid for Activision Blizzard, Sony’s purchase of Bungie, and Take-Two’s acquisition of Zynga.
04
iOS game monetization continues to face headwinds following Apple’s privacy changes, which have contributed to sustained revenue declines on the platform.
05
Genshin Impact demonstrated record-breaking monetization speed, reaching $10 million in revenue in six days and $100 million in 20 days, notably without any Western publishers appearing on the top-tier revenue growth charts.
06
The gaming sector is being explored as a potential tool for postsecondary education, a $68 billion market, as tech industry layoffs—totaling nearly 150,000 employees across 890 companies in 2022—drive demand for alternative learning and career development.
07
Generative AI, including tools like ChatGPT, is gaining traction as a potential catalyst for game development by automating the creation of dialogue, characters, and entire game worlds.

Summary

This market analysis provides a comprehensive overview of the video game industry as of early December 2022, focusing on performance trends, platform dynamics, and emerging technological shifts. The primary objective is to synthesize key market data and industry news to offer stakeholders a snapshot of the evolving gaming landscape, particularly within the free-to-play (F2P) and mobile sectors.

Data from late November to early December 2022 highlights a significant milestone for the PC gaming market, as Steam reached an all-time high of over 31.7 million concurrent players. Conversely, the mobile gaming sector is experiencing a post-pandemic cooling period. While global consumer spending on mobile games remains above pre-pandemic levels—reaching $6.5 billion in September 2022 compared to $5.24 billion in February 2020—it reflects a decline from the $7.73 billion peak recorded in July 2021. Industry analysts attribute some of this volatility to Apple’s privacy changes, which have hindered monetization efforts on iOS.

The analysis also explores strategic developments, such as the rationale behind Apex Legends Mobile receiving game of the year accolades from both Apple and Google, which was driven by a combination of branding, hardware performance, and risk management. Furthermore, the industry is closely monitoring the potential for gaming to serve as an alternative postsecondary education platform, a trend gaining relevance amid widespread tech sector layoffs.

Methodologically, the findings rely on market intelligence from data.ai, industry reporting, and expert commentary. The scope encompasses global trends in mobile and PC gaming, with specific attention to major 2022 acquisitions and the disruptive potential of generative AI in game development. The consensus among industry observers suggests that while mobile growth is stabilizing, the future of game development will be increasingly influenced by AI-driven content creation and the continued dominance of high-performing titles from Asian markets.