In-app purchases are the most lucrative revenue stream for mobile gaming apps. With revenue generated amounting to $19.3 billion in 2022.
|
Getting your Trinity Audio player ready...
|
New data released by PricewaterhouseCoopers International Limited sheds light on the shifting landscape of the gaming industry, indicating that “traditional” games make up only 26.7% of the revenue earned by the United States games industry.
The majority of the industry’s $54.1 billion revenue in 2022 came from social or casual games, accounting for a staggering 69% share, PwC’s analysis, reported by Venture Beat, revealed.
The study also showed that this genre brings in a remarkable $37.1 billion annually, and predicts the dominance of social and casual gaming will continue to increase, reaching 74% by the year 2027.
The bulk of this revenue is generated through in-app games advertising, amounting to $19.3 billion in 2022. Free-to-play casual games are the major revenue driver in the industry.
Traditional gaming contributed just over a quarter of the industry’s revenue last year, generating $15 billion. The report outlines that traditional gaming experienced a decline of 0.8% in 2022 as the market corrected after the COVID-19-induced spike.
PwC anticipates a slow recovery in growth for traditional gaming, projecting a growth rate of 1.9%, which would result in its representation dropping to 22.8% of the market by 2027.
Nevertheless, traditional gaming still surpasses U.S. movie box office revenue by nearly three times, per Kotaku.
With $5.99 billion in revenue, the gaming industry dwarfs the U.S. film industry, valued at $25.8 billion, making it worth less than half of the gaming industry.
Esports, on the other hand, contributes a mere 0.8%, despite garnering $500 million in revenue, this sector remains a minor player in the overall gaming industry
The overall growth rate of the industry saw an increase of 2.4% year-on-year, marking the slowest growth in five years.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Daisy Atino and Deborah .C. Amirize
Get news, handpicked just for you, in your box.
