Omdia expects global game revenue to resume growth from 2025, thanks to the revival of a series of blockbusters (including “GTA VI”), Nintendo's start of a new console cycle, and continued strong growth in in-game advertising.
George Jijiashvili, senior chief analyst at Omdia, said that looking ahead, global game revenue is expected to resume growth from 2025, thanks to the revival of a series of blockbuster movies (including “GTA VI”), Nintendo's beginning a new console cycle, and continued strong growth in in-game advertising. Meanwhile, the return of mobile gaming to pre-pandemic growth trends, combined with improved macroeconomic prospects, will also drive the growth of mobile gaming. According to forecast data compiled by Omdia's Total Game Market Value Dashboard, the global gaming market is expected to reach US$304 billion in 2028.
According to Omdia's latest research, 2024 will be full of challenges, and the game industry's total revenue from software, hardware, and advertising will remain the same as $249 billion. Despite this, Omdia remains optimistic about the long-term prospects of the industry, which is expected to resume growth from 2025. The stable period of 2024 is in stark contrast to the explosive growth caused by the pandemic in recent years. However, this also coincides with the expected adjustment period for the game industry to readjust after experiencing unprecedented rapid growth.
The low growth expectations for 2024 can be attributed to a number of factors, including a lack of high-value blockbuster releases, a gradual decline in sales of specialized gaming hardware (as the PS5 and Xbox series enter a phase of decline in their life cycle), and overall inflationary pressure affecting consumer spending.
In 2024, mobile in-game advertising will play a role in stabilizing the market and preventing the overall decline in the market. Throughout the forecast period, it will continue to drive the overall market and is expected to achieve strong double-digit year-over-year growth. The share of advertising in the overall market is expected to rise from 18% in 2024 to 27% in 2028, underscoring its growing importance.
Game subscriptions will account for about 10% of consumers' total gaming spending during this period, and are expected to gradually increase. Game subscriptions aren't expected to dominate the industry as much as music and video, though. Additionally, while sales revenue from complete games will fluctuate significantly based on major game releases and console launches, microtransactions and DLC revenue are expected to grow steadily, albeit at a slower pace.