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Beyond 2021: Where does gaming go next?

pandemic isn’t over yet, we can look back and reflect on a strong records as gaming brought joy, companionship, and relief to the world’s 3 billion players. COVID-19 also accelerated trends shaping widely available, it’s time to start thinking about the future. What will be this period’s lasting What intentions do veteran, new, and returning players have for the changes temporary or permanent? series of five - one global and four regional - in which we aim to answer these questions.

market-analysis

GoogleJan 2021

Report

Newzoo Metaverse Report 2021

The metaverse represents the evolution of gaming from a service into a persistent, infinitely scaling platform characterized by social interaction, user-generated content, and functioning economies. Driven by technological advancements and the social shifts of the COVID-19 era, virtual spaces now host non-gaming activities like concerts and brand activations that attract tens of millions of participants. This transition is supported by a highly receptive consumer base, with 70% of gamers expecting these social hubs to increase their playtime. The industry is moving toward a direct-to-avatar economy where digital identity and creator-led markets are central to engagement across platforms like Roblox, Fortnite, and Avakin Life. Blockchain technology serves as a primary catalyst for this shift, enabling decentralized economies and play-to-earn models that provide players with true digital ownership. While current hurdles include high transaction fees and environmental concerns associated with early NFT models, the sector is transitioning toward scalable, green solutions like Layer 2 protocols. Establishing interoperable digital identities and seamless marketplaces is essential for aligning the economic interests of developers and creators. Furthermore, the move toward Web 3.0 requires a shift in the digital supply chain toward player-owned assets and open standards, such as Pixar’s Universal Scene Description, to ensure cross-platform collaboration. Despite this momentum, significant structural and technical challenges remain. Achieving massive concurrency—moving beyond sharded instances to thousands of users in a single persistent world—requires cloud-native infrastructure and radical improvements in network protocols. Additionally, the industry must navigate regional fragmentation caused by government regulations and the need for modernized IP laws. Ethical risks, including deepfakes, unmoderated content, and identity theft, necessitate a focus on safety and open standards. Ultimately, the games industry is positioned to lead the development of a mobile-accessible, community-driven metaverse that complements physical reality through democratized monetization and high-fidelity digital twins.

metaverse market-analysis nft+1

NewzooJan 2021

Report

Newzoo Trends to Watch 2021

This analysis outlines the primary trends shaping the global games, esports, and mobile markets for 2021. The central thesis posits that while the COVID-19 pandemic accelerated engagement and spending, these behaviors have become permanent habits that will sustain market growth even as lockdowns ease. By the end of 2021, the global games market is projected to reach $189.3 billion in revenue, supported by a player base of 2.8 billion people, with significant growth emerging from Southeast Asia and the Middle East. The scope of the findings covers PC, console, and mobile segments across major global regions, including North America, Europe, China, and emerging markets. Key data points include the rise of cloud gaming, which is expected to surpass $1 billion in annual revenue for the first time, and the rapid expansion of 5G technology, with 5G-ready active smartphones forecasted to grow from 5% in 2020 to 16% (700 million units) by the end of 2021. In the esports sector, mobile titles like PUBG Mobile and Garena Free Fire are now challenging traditional PC giants in viewership, signaling a shift toward mobile-first competitive gaming. Methodologically, the findings are derived from proprietary market models and consumer research. The analysis highlights several structural shifts: the evolution of games into "metaverse" social platforms for non-gaming events, the disruption of mobile marketing due to the removal of Apple’s Identifier for Advertisers (IDFA), and the increasing pressure on traditional app store revenue-share models. Furthermore, the industry is noted to be prioritizing diversity, inclusion, and reduced toxicity in response to social movements and player demand. Ultimately, the convergence of platforms and the expansion of gaming IP into broader entertainment media are identified as the defining characteristics of the industry's trajectory.

market-analysis player-behavior global+1

NewzooJan 2021

Report

Mobile Game Genre Report: Comparing & Contrasting Eastern and Western Markets

Role-playing games emerged as the dominant force in the mobile gaming industry in 2020, generating $18.5 billion in revenue and capturing over 21% of the global market share. This financial success is heavily concentrated in East Asia, specifically China, Japan, and South Korea, which collectively account for 72% of the genre's total earnings. The market is characterized by a heavy reliance on established intellectual properties from anime, film, and legacy PC franchises, which facilitate organic user acquisition and long-term retention. While Eastern markets are dominated by titles like Lineage, Western audiences gravitate toward major media brands such as Marvel and Star Wars, though original titles can achieve success through aggressive influencer marketing and high-quality creative campaigns. The monetization landscape for the genre is currently shifting toward hybrid models that integrate traditional gacha-based in-app purchases with rewarded video advertisements. Data indicates that 83% of players are receptive to opt-in ads, and developers are increasingly utilizing battle passes to diversify revenue streams beyond high-spending "whales." These strategies, combined with robust live-ops and cross-media collaborations, have proven effective in maintaining engagement among the genre's core demographic of younger, high-income males. To navigate modern privacy-related tracking challenges, successful developers are prioritizing early user value signals and optimizing for return on ad spend through interactive playable advertisements. By tailoring game design and monetization to regional preferences—leveraging data from major industry analysts—developers can better address the distinct behavioral patterns of Eastern and Western players. Ultimately, the integration of cross-platform play and sophisticated hybrid monetization remains essential for sustaining growth in this highly competitive and lucrative segment of the mobile industry.

market-analysis mobile rpg+1

NewzooJan 2021

Report

Global Games Market Report 2021: The VR & Metaverse Edition

The global games market is projected to generate $175.8 billion in 2021, representing a marginal 1.1% year-on-year decline. This temporary contraction is primarily driven by pandemic-related supply chain disruptions, hardware shortages, and significant delays in AAA game releases, which have disproportionately impacted the console and PC segments. Despite these challenges, mobile gaming continues to expand, accounting for $90.7$ billion or 51% of total market revenue. The Asia-Pacific region remains the dominant force in the industry, contributing over half of all global revenue and supporting 55% of the world’s three billion players. The long-term outlook for the industry remains robust, with total revenues expected to surpass $218 billion by 2024. This growth is fueled by the permanent acceleration of the metaverse trend, which has transitioned video games from mere entertainment products into essential social hubs. This shift has revitalized the virtual reality sector, particularly following the commercial success of the Oculus Quest 2, and has spurred a wave of consolidation through high-profile mergers and acquisitions. While privacy changes such as the removal of Apple’s IDFA present new hurdles for mobile marketing, the segment’s 4.4% growth indicates continued resilience. Strategic decision-making in this evolving landscape relies on granular performance metrics and consumer insights across dozens of global markets. By tracking key performance indicators such as monthly active users and retention rates for thousands of titles, stakeholders can navigate the complexities of game development and transaction advisory. Ultimately, the integration of social connectivity, immersive hardware, and mobile accessibility ensures that the gaming industry will continue its upward trajectory beyond the immediate disruptions of the early 2020s.

market-analysis market-forecast vr+2

NewzooJan 2021

Report

Next-Gen Mobile Games: The Arrival of Cross-Platform and Evolution of High-Fidelity Mobile Games

Mobile gaming has emerged as the dominant force in the global games industry, projected to generate $90.7 billion in 2021 and represent over half of all global gaming revenue. This growth is underpinned by a massive player base of 2.8 billion people, which is expected to expand to 3.2 billion by 2023. The industry is currently undergoing a fundamental transformation as it shifts toward high-fidelity experiences characterized by complex mechanics, 3D graphics, and AAA-quality production. While Western markets still lean toward casual titles, mobile-first regions like China are leading this evolution, with high-fidelity games accounting for nearly 70% of the top-grossing iOS titles in that region. The convergence of mobile hardware and traditional console capabilities is a primary driver of this trend. Advancements in 5G connectivity, cloud computing, and AI-powered procedural storytelling are enabling developers to port flagship PC and console franchises to mobile devices without sacrificing depth. This technological leap has positioned mobile as a first-class platform where cross-platform play and social connectivity are now essential requirements. Furthermore, the rise of dedicated gaming smartphones and premium 5G-ready devices reflects a growing consumer demand for competitive, mid-core, and immersive experiences that were previously restricted to high-end hardware. Industry leaders anticipate that mobile gaming will achieve technical parity with high-end PCs and consoles within the next five to ten years. As major publishers increasingly prioritize platform-agnostic development, the gap between Western and Eastern market compositions is expected to narrow. The future of the medium lies in its ability to provide sophisticated, snackable, yet deeply immersive content to a mobile-native generation, solidifying the smartphone as the primary gateway for global gaming engagement.

market-analysis market-forecast global+1

NewzooJan 2021

Report

The Past, Present and Future of Games: Global and Local Opportunities

The global gaming industry is undergoing a generational transformation, evolving from a niche hobby into a pervasive cultural and economic force. This transition is characterized by a shift from traditional PC and console play toward a diversified ecosystem defined by mobile accessibility, free-to-play models, and the convergence of playing, watching, and social interaction. By 2022, the industry reached a state of "lifetime gamers," with a projected trajectory toward cross-market disruption by 2027. Market data highlights the massive scale of this sector, with approximately 2.7 billion gamers globally and 1.3 billion spenders. The COVID-19 pandemic significantly accelerated this growth, leading to a $16 billion upward adjustment in 2020 revenue forecasts. Mobile gaming has emerged as the dominant segment, accounting for 49% of global consumer revenues. Furthermore, the rise of cloud gaming is expected to generate $4.8 billion in revenue by 2023, supported by major infrastructure plays from companies like Microsoft, NVIDIA, and Tencent. Consumer behavior is also shifting, as evidenced by Newzoo’s segmentation which identifies diverse personas ranging from "Hardware Collectors" to "Backseat Viewers." Notably, 29% of enthusiasts do not rank playing as their primary interest, focusing instead on viewing or hardware. This engagement extends into new value chains, including in-game e-commerce—where players purchase physical goods directly through apps—and the integration of gaming with traditional media and travel industries. The competitive landscape is defined by technological innovation and strategic content plays. While Sony emphasizes exclusive titles for its hardware, Microsoft focuses on subscription-based services. Simultaneously, the rise of esports and live-streaming has created new opportunities for celebrity engagement and music integration. As mobile esports viewership sees exponential growth on platforms like YouTube, the industry continues to blur the lines between casual and core gaming experiences, driven by global studios and empowered creator communities.

market-analysis player-demographics esports+1

NewzooJan 2020

Report

Level Up: A Guide to Succeed in Asia’s Gaming Market

Asia has established itself as the epicenter of the global gaming industry, driven by a mobile-first population exceeding 1.5 billion players. The region’s market is characterized by the dominance of free-to-play models, which account for nearly 99% of mobile revenue and all top-grossing titles. While China and Japan lead in total revenue, Japan maintains the highest value per user with an average revenue per download of $12.84. Growth is increasingly fueled by the female demographic, which expanded to 500 million players by 2019 and contributes nearly 40% of total mobile gaming revenue. This shift necessitates more inclusive storylines and diverse development teams to capture a demographic that is currently outgrowing its male counterpart. The competitive landscape is defined by the rapid ascent of mobile esports, with Asia generating 68% of the sector's global revenue. Southeast Asia, in particular, has seen a 244% increase in tournament prize pools, signaling a transition from casual play toward complex, competitive genres like MOBAs and Battle Royales. Despite high interest, a significant gap remains between esports viewership and active participation, representing a massive untapped opportunity for developers. Success in these markets requires sophisticated monetization strategies, such as hybrid models combining gacha mechanics, battle passes, and rewarded video ads to accommodate varying income levels across the territory. Navigating the Asian market demands deep localization that extends beyond language to include cultural customs, religious sensitivities, and technical optimization for diverse hardware. While Japan and South Korea remain dominated by local developers and legacy RPG franchises, India and Southeast Asia offer high-growth potential for international titles that provide "lite" versions for accessible play. To achieve long-term engagement, developers must leverage local influencers and community-driven gameplay, ensuring that titles resonate with the specific pop culture trends and infrastructure capabilities of each unique sub-region.

market-analysis player-demographics monetization+1

NewzooJan 2020

Report

2020 Global Games Market Report

The 2020 Global Games Market Report provides a comprehensive analysis of the video game industry during a landmark year defined by the COVID-19 pandemic and the transition to next-generation consoles. The central thesis posits that gaming has evolved beyond simple entertainment to become a primary social network and a precursor to the "metaverse," with interactive virtual spaces increasingly replacing traditional social media for younger generations. Key findings indicate that the global games market was projected to generate $159.3 billion in 2020, representing a 9.3% year-on-year increase. Mobile gaming remained the largest segment, accounting for $77.2 billion (48% of the market), driven by low barriers to entry and the rise of hypercasual titles. Console and PC segments followed with $45.2 billion and $36.9 billion respectively. Geographically, the Asia-Pacific region dominated the landscape, generating $78.4 billion—nearly half of all global revenues—while the Middle East and Africa emerged as the fastest-growing region. By the end of 2020, the global player base was expected to reach 2.7 billion, with forecasts suggesting the market would surpass $200 billion and 3 billion players by 2023. The scope of the analysis covers 30 key markets representing over 90% of global revenues, with data segmented by region (Asia-Pacific, North America, Europe, Latin America, and Middle East/Africa) and platform. Methodology relies on a top-down predictive model integrating macroeconomic data, financial reports from over 100 public companies, and primary consumer research involving 62,500 respondents. The report concludes that while lockdown measures provided a short-term surge in engagement and revenue, the industry faces long-term shifts toward platform-agnostic cloud gaming and subscription models. Additionally, it highlights the successful globalization of Chinese gaming firms, which pivoted to international markets following domestic regulatory freezes, now leading the industry in mobile development and cross-border investment.

market-analysis market-forecast player-behavior+1

NewzooJan 2020

Report

Mobile Gaming Apps Report: 2019 User Acquisition Trends & Benchmarks

The 2019 mobile gaming landscape is defined by a period of unprecedented consumer spending, with gaming apps accounting for 74% of total app store revenue. While the market continues to expand, user acquisition costs have escalated, reaching an average of $35.42 to acquire a single paying user. This environment necessitates a strategic approach to platform and regional selection, as Android currently offers a more cost-effective reach than iOS. Seasonal trends also play a critical role in performance, with the third quarter emerging as a peak period for high conversion rates and optimized acquisition costs. Geographically, the market presents a stark contrast between established and emerging territories. North America, Japan, and South Korea remain the most expensive regions for acquisition but continue to lead in long-term retention and in-app purchase revenue. Conversely, Russia, Brazil, and the broader EMEA region offer high-value opportunities characterized by lower registration costs and strong initial conversion rates. While these emerging markets provide a lower barrier to entry, they often struggle with deep-funnel engagement and monetization compared to the high-yield but competitive Asian and North American markets. Genre-specific data reveals that Social Casino and Hyper Casual games are the primary drivers of early engagement, with Social Casino apps achieving a category-leading 14.3% install-to-purchase conversion rate despite high acquisition costs. Hyper Casual games have solidified their position through ad-supported models and high Day 1 retention, effectively targeting non-traditional gamers in markets like Colombia and Turkey. Meanwhile, Midcore and Strategy titles demonstrate the greatest potential for long-term revenue and sustained engagement, particularly within the EMEA region, where they outperform North American benchmarks in conversion efficiency.

user-acquisition retention monetization+2

NewzooJan 2019

Newzoo

Documents

Beyond 2021: Where does gaming go next?

Newzoo Metaverse Report 2021

Newzoo Trends to Watch 2021

Mobile Game Genre Report: Comparing & Contrasting Eastern and Western Markets

Global Games Market Report 2021: The VR & Metaverse Edition

Next-Gen Mobile Games: The Arrival of Cross-Platform and Evolution of High-Fidelity Mobile Games

The Past, Present and Future of Games: Global and Local Opportunities

Level Up: A Guide to Succeed in Asia’s Gaming Market

The Global and Local Opportunities in Gaming (2020)

2020 Global Games Market Report

Mobile Gaming Apps Report: 2019 User Acquisition Trends & Benchmarks