Gaming Industry Charts a Rebound in 2023

After the pandemic-induced increase in gaming activity, player activity declined in 2022 as daily life resumed. Constant supply chain disruptions that delayed game launches and led to equipment shortages also played a role. In 2023, the gaming industry hit the restart button. Long game releases, mobile gaming innovations, the resurgence of in-app purchases, and advances in cloud gaming - these are factors that ensure positive momentum for industry development in 2024. In this report, we consider these and other factors, including positive signals for the industry, such as the recent "green light" for the merger between Microsoft and Activision Blizzard.

Key Takeaways

• US gaming revenue to increase in 2023. In our view, the results so far are setting the industry up for success. According to one commentator, global gaming revenue will exceed $212 billion by 2026, up 16% from 2022. 1
• The recovery of the gaming industry in 2023 is mainly due to high sales of game consoles and may continue with the launch of new games. Global gaming industry revenues in 2023 are expected to reach $187. 7 billion, up 2. 6% year-on-year, mainly due to a potential 7. 4% increase in hardware sales. 2
• We expect the gaming industry to benefit from a resurgence in acquisition activity, as well as a surge in M& A and a rise in mobile and cloud gaming.

Strong Growth in the U.S. Gaming Market

Due to improving economic conditions and sustained consumer activity, U. S. gaming industry revenues have accelerated growth in recent months, especially in September, when revenues rose 10% year-on-year to $4. 5 billion. 3 This growth continues the strong momentum of the first nine months of the year, when the sector's revenues rose 2% year-on-year to $39. 4 billion. 4

The strength of the market is evidenced by the three gaming console giants: Microsoft, Nintendo and Sony, which all showed strong performances in recent quarters. In the first quarter of fiscal year 2024 (FG), Microsoft announced that content and Xbox services revenue increased 13% year-on-year, while Nintendo announced that revenue increased 50% year-on-year due to the launch of the game "The Legend of Zelda: Tears of the Kingdom." 5. In addition, Sony's PlayStation division continued to perform well, and the company revised its outlook for its Game and Network Services division in the second quarter of fiscal year 2023 to a 7% increase. 7

Hardware Reigns Supreme as the Primary Catalyst

Hardware game implementation, which has every chance of being a strong leading indicator of content costs and services, is ageing strongly in 2023. As of September 9, hardware-support implementation in the US age was associated with an impressive 10% of the previous year comparison (YTD). 8 This aspiration coincides with universal game-industry monitoring, with hardware-support sales increasing 7, 4%, leading to a total revenue increase of $187 billion this year. 9

The background to the renewed attention on home game consoles is the release of long-awaited games that had been postponed until now. Apart from this, the supply of new game consoles has finally exceeded demand.

Sales of game consoles and new games are often closely related. For example, the PlayStation 5 (PS5), which was released in November 2020, has recorded a year-on-year increase every month since October 2022. 10 The release of famous games continues to be the main player in accelerating the rise. For example, the PS5 unique work "Marvel's Spider-Man 2" exceeded 2. 5 million copies in total circulation worldwide in 24 hours from the long-awaited game's release in October 2023. 11 The triumph of the release, thanks to the limited series of DualSense-controllers delivered in a set with the game, increased the console's appeal for customers. This desire has the potential to predict the solemn season of PS5 in 2023. 12

Similarly, the output of the long-awaited Starfield has had a major impact on the implementation of Xbox Series X, and on the eve of the game's release on scratch access, Amazon sold 1. 13

Key Factors Likely to Shape the Gaming Industry’s Trajectory in 2024

In addition to the increase in costs, M& A is also active, and a breakthrough in mobile and cloud gaming is also expected.

• The acquisition by Microsoft Activision Blizzard will be completed in the third quarter of 2023, which may boost M& A in the industry. Last year, 222 M& AP transactions were concluded in related companies, most of which were aimed at expanding the gaming ecosystem. 14 This amount is expected to grow in the coming years as weakening financial bases lead smaller companies to consider other options. It is noteworthy that game creators are investing in the area of ​​mobile game marketing costs and strategically receiving issues from specialized game advertising companies. According to monitoring, mobile game advertising expenses in the United States will reach $6. 67 billion in 2023, a 12% increase from last year. 15, 16
• Modernization of game equipment: The advantage in the field of personal computers and mobile devices is to concentrate on eliminating gameplay with the highest quality graphics other than console, drawing a wide range of audiences, and expanding common targets. I'm doing it. For example, Apple took a decisive step a while ago. From January 1, 2024, AAA games can be played on the iPhone Pro 15 models, and the game includes Assassin's Creed Mirage, Resident Evil, and Death Stranding. 17 Apple has released an M 3-type microcessor with the latest functions of the Central Micro processor (CPU) and a graphic micro processor (GPU), strengthening its unique status in the game PC. 18
• Acceptance of cloud games: Cloud games are improved without worrying about delays. Netflix is ​​promoted by the development of its bad reputation, which is an experimental version of a game on its own platform in the United States. 19 The company aims to expand the share of games in general income in the top several years with the use of games on all kinds of devices. 20 In our opinion, this movement could start interactive streaming and overall games in the market thanks to the absence of the highest source price associated with the console.

Conclusion: Gaming’s Investment Case Gets a Reset

In recent years, the game industry has faced many issues and has escaped from a stronger crisis. These major players' strategic initiatives, such as Microsoft, Apple, Netflix, and acquisitions in the industry that are still increasing, have the potential to change in a different direction from the period. Is shown. And we, in this way, provide all kinds of traders with skills for roles that are booming, and are actually waiting. In fact, in this evaluation, the game price remains a historic minimum value that will further increase the appeal of investment.

Similar ETF

To display the current promotion package, click the fund title above. Properties may be changed. Currently and future assets are being risked. < SPAN> Modernization of game equipment: The benefits of personal computers and mobile devices are the elimination of gameplay with the highest quality graphics other than the console, drawing a wide range of audiences and expanding the common target layer. I'm focusing on that. For example, Apple took a decisive step a while ago. From January 1, 2024, AAA games can be played on the iPhone Pro 15 models, and the game includes Assassin's Creed Mirage, Resident Evil, and Death Stranding. 17 Apple has released an M 3-type microcessor with the latest functions of the Central Micro processor (CPU) and a graphic micro processor (GPU), strengthening its unique status in the game PC. 18

universe

Related Articles

• In recent years, the game industry has faced many issues and has escaped from a stronger crisis. These major players' strategic initiatives, such as Microsoft, Apple, Netflix, and acquisitions in the industry that are still increasing, have the potential to change in a different direction from the period. Is shown. And we, in this way, provide all kinds of traders with skills for roles that are booming, and are actually waiting. In fact, in this evaluation, the game price remains a historic minimum value that will further increase the appeal of investment.
• To display the current promotion package, click the fund title above. Properties may be changed. Currently and future assets are being risked. Modernization of game equipment: The advantage in the field of personal computers and mobile devices is to concentrate on eliminating gameplay with the highest quality graphics other than console, drawing a wide range of audiences, and expanding common targets. I'm doing it. For example, Apple took a decisive step a while ago. From January 1, 2024, AAA games can be played on the iPhone Pro 15 models, and the game includes Assassin's Creed Mirage, Resident Evil, and Death Stranding. 17 Apple has released an M 3-type microcessor with the latest functions of the Central Micro processor (CPU) and a graphic micro processor (GPU), strengthening its unique status in the game PC. 18
• Acceptance of cloud games: Cloud games are improved without worrying about delays. Netflix is ​​promoted by the development of its bad reputation, which is an experimental version of a game on its own platform in the United States. 19 The company aims to expand the share of games in general income in the top several years with the use of games on all kinds of devices. 20 In our opinion, this movement could start interactive streaming and overall games in the market thanks to the absence of the highest source price associated with the console.
• Similar ETF

To display the current promotion package, click the fund title above. Properties may be changed. Currently and future assets are being risked.

1. News (August 8, 2023). World Game Market 2023 Report. 2. Same top 3. Gamedev report. (October 23, 2023). Circus: The US game market grew 10 % in September. 4. Same top 5. Microsoft. (October 24, 2023). WinStrelease FY24 Q1: Microsoft Cloud Strength FourSst Quarter Results, 6. (August 3, 2023). Ney Group Company. (August 9, 2023). Sony Group Co., Ltd.. 8. Gamedev report. (October 23, 2023). Circana: The US game market in September has grown 10%. 9. NEWZOO (August 8, 2023). Investigated the world game market in 2023. 10. Analysis of Global X with information from VGChartz. (Weekly Hardwar e-Compariso n-Global). Released on November 2, 2023. 11. Sony Interactive Entertainment. (October 23, 2023) MARVEL'S SPIDER-MAN 2 "will update the sales record and become the fastest PlayStation Studios game in PlayStation. 12. Barons. (October 26, 2023). Spide r-Man 2 is one of the main reasons. 13. VG247. (September 4, 2023). With the advertising of Starfield, the sales of Xbox Series X on Amazon increased by 1000%. 14. Axios (October 26, 2023). Report: In 2024, investment in game industry trading increased. 15. Insider intelligence. (October 16, 2023). The merger of Microsoft and Activision Blizzard.

universe

Next big problem: August 2024

universe

Excitement point: Recipe for "summer beef" stew

universe