On a regional basis, APAC is gaining market share of consumer spending across most devices. However, markets outside of North America, APAC, and Western Europe generally saw a lower share of consumer spending on games in Q1 2023. Mobile gaming continues to be a diverse landscape, with games like Monopoly Go, Honkai: Star Rail, Royal Match, and FIFA Soccer defining the first half of 2023. The report also noted that while app tracking transparency (ATT) is not driving negative sentiments towards mobile ads, the decline in targeting data is currently impacting monetization more than user experience.
Key takeaways:
- Consumer spending on mobile games is projected to reach $108 billion in 2023, representing about 55% of the global total.
- Handheld consoles, primarily the Nintendo Switch Lite and Valve’s Steam Deck, are expected to bring in less than $3 billion in spending, with a decline of 20% in spend for the Switch Lite.
- Cloud-streamed gaming (CSG) is a key area of growth, with consumer spending expected to grow 50%, reaching $3.8 billion across all platforms globally in 2023.
- Mobile gaming continues to be a disparate landscape, with a variety of monetization strategies being used, including ads, despite declining consumer sentiment towards them.