How Much Is the Gaming Industry Worth in 2022?

The latest industry statistics for the gaming industry provides some rather astonishing insights. With so many top gaming developers breaking new records, it is clear that the gaming industry has come a long way since the first video game of tennis was invented by nuclear physicist, William Higinbotham in 1956. The first official game however is credited to be Pong which was released in 1970.

Since then, the gaming industry has provided many players with other classic games such as Mario Brothers, Space Invaders and Pacman. The gaming industry did not stop there. Graphics and gameplay has constantly evolved in order to provide users with a more interactive and realistic gaming experience.

Traditional gaming consoles and arcade games had to make way for the smartphone, which enables players to game on their phones at any time and any place.

It is clear that there is big money in the gaming industry and it is not slowing down. With approximately 3 billion people across the world playing games,  let’s dive in and take a look at how much the gaming industry is actually worth right now:

Notable Numbers, Research and Statistics:

The global gaming industry is currently worth around $300 billion. Revenue is generated from a variety of different gaming sources split between direct and indirect revenue.

Approximately $100 billion is generated through 5 indirect revenue streams such as:

  1. Mobile devices, $39,7 billion
  2. PC gaming hardware, $39,3 billion
  3. PC gaming accessories, $12 billion
  4. Gaming video content, $9,3 billion
  5. E-sports, $1,3 billion

 

The remainder $200 billion is generated through direct gaming sources such as;

Digital PC game software, $41,4 billion

Mobile in-game adverts, $20 billion

Mobile and handheld console hardware, $15,3 billion

Mobile gaming software, $83,7 billion

Mobile and handheld gaming console software, $39,9 billion

The global pandemic in 2020 sparked a growth in the gaming industry with many more players spending their time at home online. Some of the world’s best race car drivers took to online gaming to compete with one another and consumers everywhere realized the social interactions that gaming could provide.

Other Interesting Facts

For many, games are a way to relax, socialize or destress. Gaming has had a significant impact on society expanding into movie franchises, toys and arena based gaming tournaments. Scientists have said that gaming can improve decision making and problem solving.

Below are some more interesting gaming industry facts;

  • China has the largest gaming market globally worth $51 billion.
  • The gaming demographic has changed and there are now almost just as many female gamers (46%0 as there are males (52%).
  • 79% of all gamers are 5 years and older
  • On average, gamers spend around 16 hours a week playing.
  • Nintendo is the largest gaming company by net revenue at an estimated $85 billion
  • In 2022, players spend $4.9 billion on immersive games such as virtual reality (VR)
  • The number 1 most played and most sold game in the world is Minecraft.
  • The best selling console in 2022 is the Nintendo Switch. The Playstation 2 takes the top spot for the best selling console of all time.
  • Tech giants such as Google, Meta (Facebook) and Apple have all started to make plans to join the gaming industry.
  • The gameboy was the first video game that was played in space. Russian cosmonaut Aleksandr A. Serebrov played the game Tetris on the Soyuz TM-17 rocket to the MIR Space Station in 1993.

The Future of the Gaming Industry

With the introduction of 5G technology which means faster upload and download speeds, gaming developers can push themselves to create more demanding games. Below are some trends that experts are saying will change the future of the gaming industry.

Cloud Gaming

Faster internet speeds means that many companies are already looking at cloud based environments where gamers can stream their favorite games. With gaming consoles and hardware parts becoming increasingly expensive, this will allow many more consumers to have access to games.

Graphics processing capabilities will become more powerful and many gamers will be able to play without having to purchase expensive gaming consoles.

Virtual Reality

Virtual reality (VR) and augmented reality (AR) is predicted to become part of mainstream gaming and game developers will create games that provide more social interactions. 

Virtual reality (VR) headsets are already available and the technology is constantly improving. VR allows gamers to feel like they are part of the game and allows users to be more interactive by using physical movements.

This movement based gaming is a lot healthier than traditional gaming which limits users movements and have them sitting down for hours on end.

Other senses

Game developers are already looking at additional ways to increase the user experience. Woojer has created a gaming vest which relays sensations and vibrations to the body for a more immersed gaming experience.

Other senses such as touch, heat or cold senses and smell will become part of the user experience. Researchers from the National University of Singapore are developing and testing devices that will incorporate a variety of senses into games. 

Gamers can use real-time and life-like sensory feedback to make game based decisions that have a real impact on the outcome of the game.

Conclusion

Gaming remains one of the fastest growing industries in the entertainment market. Young and old are enjoying the endless gaming options available and the industry is continuing to explore other technologies in order to make the gaming experience more realistic and fun.

Mobile gaming is predicted to become even more popular because consumers can play their favorite games on the go. One of the most interesting changes in the gaming industry is the change in demographic of gamers. These days, almost everyone is playing or has played either a mobile game, vintage games or games on consoles such as Xbox or Playstation.

No one knows what the future holds, but one thing is for certain and that is that gaming will remain a part of our daily lives.

Sources and References

Research on the effects of VR gaming on cybersickness

Research on Saliency Augmentation in Gaming