Gaming spend stagnates per Data.ai and IDC H1 2023 report
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While the games industry isn’t growing according to Data.ai and IDC’s latest report, spending declines are leveling off faster than expected.
The firms project that consumer spending on mobile games will reach $108 billion in 2023. This represents about 55% of the global total. Home consoles and PC/Mac will bring in similar totals of $43 billion and $40 billion respectively. Handheld consoles, primarily the Nintendo Switch Lite and Valve’s Steam Deck, are expected to bring in less than $3 billion in spending.
Handheld consoles are the only segment that saw a dramatic shift in spending over the last year. Waning interest in the Switch Lite drove a decline of 20% in spend.
By comparison, mobile, home consoles and PC/Mac spending shifted less than 5% from last year. Mobile spending fell 2% which Data.ai attributes the decline to crackdowns on app tracking transparency (ATT) and fingerprinting alongside more regulations on adolescent mobile use in China. Meanwhile, home console spend was up 3% based on the strength of PS5 and Xbox Series S|X. Similarly, PC/Mac spend is expected to grow 4% thanks to subscription-based game revenue.
On a regional basis, APAC is picking up market share of consumer spending across most devices. APAC’s Q1 2023 consumer spending on mobile grew by 1.7 points, PC/Mac by 2.2 points and home consoles by 0.4 points YoY. Data.ai and IDC attributed the growth primarily to South
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