Market Wire: February 13, 2023

This market analysis provides a mid-February 2023 update on the video game industry, focusing on mobile market performance, corporate acquisition activity, and streaming trends. The analysis utilizes data from industry sources such as data.ai and Stream Hatchet to evaluate current shifts in player engagement and revenue generation.

A primary focus is the ongoing acquisition process for Rovio, the developer of Angry Birds. Following a non-binding offer from Playtika in late 2022, Rovio has entered discussions with multiple potential buyers. Internal sentiment among Rovio staff regarding a potential Playtika acquisition is reportedly negative, leading to speculation about alternative suitors, including Netflix, Disney, EA, Take-Two, and Sony. This corporate activity occurs against a backdrop of financial pressure, as Rovio reported a 2.5% year-on-year revenue decline in the fourth quarter of 2022.

The streaming sector experienced a contraction in 2022, with total live game streaming watch time decreasing by 13.5% year-on-year. While major Western platforms saw declines, Facebook Gaming experienced a particularly sharp reduction in viewership. Despite this broader downturn, specific titles maintain high engagement; the top games within the action-adventure, MOBA, and FPS genres continue to capture the majority of total watch time. Notably, Counter-Strike: Global Offensive achieved a record-breaking 1.32 million concurrent players in February 2023, eleven years after its initial release. This longevity is attributed largely to the implementation of an item economy and skin-based monetization, which incentivized player retention and viewership.

Finally, the analysis highlights the importance of organic growth in the mobile market, specifically noting the viral success of the game Dumb Ways to Die, which secured 465,000 installs in a single week with only 1% attributed to paid acquisition, largely driven by social media trends.