Market reporting company Newzoo estimates that mobile games will reach $92 billion, down 6% year-on-year.
A new report from Newzoo predicts that the games market will generate $184 billion by 2022. The estimate represents a 4% year-over-year decline. The PC gaming segment is projected to decline, earning $2 billion this year, down 16% year-over-year.
The company has provided a complete breakdown of the parts of the global video game market. The report attributed the drop in mobile gaming spending to the recession’s effect on people’s disposable income.
Meanwhile, cloud gaming is poised to accumulate $2.4 billion from over 30 million paying users this year. The virtual reality games market reaches $2 billion by 2022 and is expected to reach $3.2 billion by 2024. Newzoo says that the games market will generate $211 billion by 2025.
The report also pointed out that launching games in China has long been a difficult undertaking because of a number of hurdles and regulations that developers won’t find elsewhere. Despite all that, the Chinese gaming market accounts for 24.8% of the industry’s global revenue. That makes it the largest video game market in the world, generating even more revenue than countries like the US and Japan.
Newzoo not only highlights the huge amount of money China’s video game market makes, but also further explains some of the existing regulations that are even more restrictive. More stringent regulations began in the early 2000s when China required any money-making game to have a license to operate, and other rules were added over time to make the process smooth. more difficult.
2021 sees the imposition of the strictest rules to date as the Chinese government has put in place. The new parameters evaluate games before potentially more and more difficult approvals than before. Among the criteria for licensing a game release in line with the government’s social values, education of players about Chinese culture and science is given higher priority.
Newzoo’s report also highlights the increasing number of games approved for launch in China after a long delay, especially those produced outside of the country. So far, no foreign game has passed the strict regulations to launch in 2022 and it has been more than 500 days since the last foreign game was licensed to launch in the country.