Mobile revenues dipped in 2023, but the $100 billion segment is expected to bounce back in 2024.
Much to the dismay of publishers like Take-Two Interactive, who recently purchased Zynga for $12.7 billion, mobile gaming saw a decline throughout 2023. Analyst firm Newzoo estimates that mobile gaming dropped 16% year-over-year to $90.4 billion, excluding advertising.
These trends are set to change in 2024. Analyst firm Data.ai forecasts that mobile gaming will boost some 4% in 2024 to $111.4 billion revenues. The group also predicts that the United States will be the largest driver for spending growth throughout 2024. This seems to be consistent with Newzoo's data which trends towards North America as having the largest spend-to-population ratio in the world.
2024 will also see the introduction of multiple new mobile entries, including the highly anticipated Star Wars: Hunters from Zynga, as well as Warzone Mobile from Activision.
Here's a few insights from Data.ai:
"Consumer spend in mobile gaming is set to drop a further -3% in 2023 to $107.5 billion - a continuation of the squeeze on consumers' wallets due to high inflation, economic headwinds and a market correction from pandemic-related highs.
"However, the trend is set to reverse: consumer spend in 2024F set to rebound 4% year on year to $111.4 billion, falling short of peak levels during COVID-19 at $115.8 billion.
"The US is set to be the largest driver of spending growth in 2024, accounting for 40% of aggregate YoY spend, followed by Japan, South Korea, Taiwan, Germany and the UK. Japan is set to contribute 16% of total growth in YoY spending."
