ReportXsolla
Xsolla Report: State of Play – Winter 2024 Edition
1 Jan 202455 pages~55 min full read
The global gaming industry is projected to grow from $106.8 billion in 2023 to $205.7 billion by 2026, supported by a total player base of 3.79 billion people.
See it on page 5Mobile gaming remains the industry's primary revenue driver, accounting for nearly 50% of total consumer spending and reaching a projected $111.4 billion in 2024.
See it on page 31Strategic investment value saw a massive 577% surge in mid-2023 to reach $7 billion in a single quarter, despite an overall cooling in M&A activity and a volatile investment climate.
See it on page 49The metaverse is projected to reach a valuation of $996 billion by 2030 as the industry shifts toward digital-only monetization and cloud-based services.
See it on page 37Regulatory changes like the Digital Markets Act are forcing a structural shift toward alternative billing systems and direct-to-consumer web stores to bypass traditional platform constraints.
See it on page 30AAA development budgets have tripled over the last five years, forcing developers to adopt generative AI and community-focused strategies to manage rising costs and high user acquisition expenses.
See it on page 48Women now represent nearly 50% of the global player base, yet they remain significantly underrepresented in executive and professional leadership roles within the industry.
See it on page 20The global gaming industry is currently navigating a period of stabilization following a massive 26% growth surge between 2019 and 2021. While the rapid pandemic-era expansion has moderated, the sector reached $106.8 billion in 2023 and is on a trajectory to hit $205.7 billion by 2026. This growth is underpinned by a global player base expanding to 3.79 billion people, with mobile gaming remaining the dominant force, accounting for nearly half of all consumer spending. Despite a downward revision in year-over-year growth forecasts to 0.6%, mobile spending is expected to reach $111.4 billion in 2024, led by strong performance in the United States and Japan.
The industry is undergoing a significant structural transformation driven by technological shifts and regulatory changes. The transition toward digital-only monetization, cloud-based services, and the metaverse—projected to reach $996 billion by 2030—reflects a broader convergence with the entertainment landscape. Furthermore, the implementation of the Digital Markets Act is opening doors for alternative billing systems and direct-to-consumer web stores. These shifts occur alongside a demographic evolution where women now represent nearly 50% of the player base, though they remain underrepresented in executive and professional roles.
Financial dynamics within the sector show a complex landscape of consolidation and rising costs. While AAA development budgets have tripled over the last five years, the investment market has faced volatility, characterized by a cooling M&A environment and significant layoffs. Despite a drop in deal volume, strategic investment value surged by 577% in mid-2023, reaching $7 billion in a single quarter. To counter high user acquisition costs and stricter privacy regulations, developers are increasingly adopting generative AI for efficiency and pivoting toward community-focused organic reach, early access models, and influencer partnerships to ensure long-term sustainability.
