Revenue in the global gaming market is projected to hit $212.4 billion by 2026, with mobile platforms continuing to lead the growth, a new study has shown.
The figure would be up by more than 13 per cent from an estimated $187.7 billion in 2023, which represents a 2.6 per cent increase from 2022, as gaming “is now fully embedded in the mainstream”, market data platform Newzoo said in its August market update.
The revenue surge will be dominated by mobile games, which are seen to marginally grow 0.8 per cent and account for $92.6 billion, or nearly half of all revenue, this year, the Amsterdam-based company said.
Console games would be second with $56.1 billion, or 30 per cent of total revenue. The segment is also projected to log in the biggest annual increase of 7.4 per cent.
This will be followed by PC games with $37.1 billion (20 per cent), up 1.6 per cent year-on-year. Browser-based PC games will amass $1.9 billion (1 per cent of revenue), and is expected to post the biggest annual decline of nearly 17 per cent.
“Every year sees gaming become more mainstream … gaming’s impact will go beyond the number of players and revenue generated within the scope of the industry,” Tom Wijman, lead games analyst at Newzoo, wrote in the report.
The 2023 revenue projection is “staggering, which is an achievement given the many macroeconomic factors at play”, he said.
Gaming has become a big business globally, with new technology providing both an opportunity to reach a wider audience and develop new titles to cater to consumer demand.
Regionally, Asia-Pacific will continue to lead revenue generation with an estimated $85.8 billion in 2023 for a 46 per cent market share, followed by North America with $51.6 billion (27 per cent), Europe with $34.4 billion (18 per cent) and Latin America with $8.8 billion (5 per cent).
The Middle East and Africa region, while expected to be last with $7.2 billion and a 4 per cent market share this year, is likely to post the biggest jump in revenue with nearly 7 per cent. The aforementioned four regions are to record growth of 1.2 per cent, 3.8 per cent, 3.2 per cent and 4.3 per cent respectively.
Revenue growth will be underpinned by a growing gamer population, which is projected to rise 6.3 per cent year-on-year and hit 3.381 billion players in 2023, Newzoo said.
Asia-Pacific will again have the biggest share with 1.789 billion, which is more than half of the market and up 5.7 per cent annually, with the Middle East and Africa this time jumping to second place with 574 million for a 17 per cent share and up 12.3 per cent.
Europe would be third with 447 million, good for a market share of 13 per cent, followed by Latin America with 335 million (10 per cent) and North America with 237 million (7 per cent).
The popularity of cloud gaming – a growing market dominated by a few services yet accounting for most paying users – has the potential to attract 43.1 million paying users by the end of 2023, with this number growing to 80.4 million by 2025, the report said.
The Middle East and Africa and Latin America, the two regions expected to log the biggest annual increases, will be driven by better internet infrastructure, accessible and affordable internet, and the rise of the middle class, Newzoo said.
The availability of gaming as an affordable recreational activity, thanks to free-to-play models and the increasing population of smartphone users, will also be a factor, it said.
Meanwhile, China's Tencent remains the biggest video gaming company by revenue with $7.56 billion, followed by Sony ($4.38 billion), Apple ($3.68 billion), Microsoft ($3.15 billion) and NetEase ($2.71 billion), according to Newzoo's latest data.
Rounding out the top 10 are Google, Activision Blizzard, Electronic Arts, Nintendo and Take-Two Interactive.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The nine articles of the 50-Year Charter
1. Dubai silk road
2. A geo-economic map for Dubai
3. First virtual commercial city
4. A central education file for every citizen
5. A doctor to every citizen
6. Free economic and creative zones in universities
7. Self-sufficiency in Dubai homes
8. Co-operative companies in various sectors
9: Annual growth in philanthropy
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
SPECS
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MATCH INFO
Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)
Russia 0
The%20specs
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Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
NEW%20UTILITY%20POLICY%3A%20WHAT%20DOES%20IT%20REGULATE%3F
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Crime%20Wave
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