Traditional gaming shrinks to 26.7% of game and esports revenue as overall U.S. sales head to $72B by 2027 | PwC
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Total video games and esports revenue in the U.S. was $54.1 billion in 2022 and is forecast to reach $72.0 billion by $27 billion, according to a report by PwC.
That represents a 5.9% compound annual growth rate (CAGR) from 2022 to 2027. Year-on-year growth in 2022 was 2.4%, representing the lowest growth rate the video games and esports market in the U.S. has experienced in five years.
Those numbers by themselves aren’t surprising, but I gained some interesting insight in an interview with CJ Bangah, a market research leader who worked on the PwC Global Entertainment & Media Outlook. It’s worth noting that traditional games are only 26.7% of total U.S. game and esports revenues now, and there are different drivers pushing gaming forward than there used to be. But first, let’s look at details.
A post-COVID-19 pandemic market correction likely played a role in this, because consumers returning to regular working life had less free time and disposable income to spend on video games. The growth rate is expected to increase to 5.1% in 2023, and oscillate between 6.6% and 5.6% for the remainder of the forecast period, said Bangah.
The composition of the video games market in the U.S. typifies that of a modern Western nation, with a rapidly growing social and casual gaming sector and a robust traditional gaming sector that exhibits slower overall growth as it transitions away from physical media to digital sales and microtransactions, PwC said.
Previously the largest video games market in the world, the U.S. was overtaken in 2021 by China’s rapidly growing appetite for games. Nonetheless, the U.S. will remain one
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