Market Wire: November 21, 2022

Key insights

5 takeaways

01
The global games market is projected to decline 4.3% to $184.4 billion in 2022, with the mobile sector accounting for the majority of this downturn.
02
Despite the overall market contraction, mobile gaming is expected to retain a 50% market share, generating approximately $92.2 billion in revenue for the year.
03
The mobile game 'Goddess of Victory: Nikki' achieved significant commercial success following its November 2, 2022 launch, generating roughly $57 million in cumulative net revenue and 5.5 million downloads by November 20.
04
Epic Games alleges in a lawsuit that Google paid $360 million to Activision Blizzard and $30 million to Riot Games to discourage them from launching competing app stores.
05
Methodical Games, a new studio founded by industry veterans including Call of Duty creator Jason West, has raised $15 million in funding from investors including Lightspeed Venture Partners and BITKRAFT Ventures.

Summary

The November 21, 2022, market update provides a synthesis of key industry developments, financial data, and emerging trends within the global video game sector. The primary purpose of the update is to offer timely, data-driven insights into the mobile gaming landscape, focusing on revenue performance, corporate shifts, and market forecasts.

A significant industry development highlighted is the termination of the 14-year partnership between Netease and Blizzard, which will result in the removal of major titles such as World of Warcraft and Overwatch 2 from the Chinese market. Additionally, the update notes legal challenges facing Google, specifically allegations from Epic Games regarding $360 million in payments to Activision Blizzard and $30 million to Riot Games intended to suppress competition from alternative app stores.

Market performance data reveals a notable success story in Goddess of Victory: Nikke, which achieved approximately $57 million in cumulative net revenue and 5.5 million downloads between its November 2 launch and November 20, 2022, with Japan serving as the primary revenue driver. Conversely, broader industry outlooks have become more conservative; Newzoo revised its 2022 forecast to reflect a 4.3% decline in the global games market to $184.4 billion, largely attributed to a downturn in the mobile segment, which is still expected to account for 50% of total market revenue.

Finally, the report notes continued investment activity, exemplified by the $15 million funding round for the new studio Methodical Games, backed by prominent venture capital firms and industry veterans. These findings rely on industry estimates from data.ai and market analysis from Newzoo to provide a snapshot of the competitive and financial state of the gaming industry as of late 2022.