Traditional Gaming Shrinks to 26.7% of Game and Esports Revenue

PricewaterhouseCoopers (PwC) has published a new report revealing that traditional gaming revenue decreased in the United States in 2022. The total video games and esports revenue was $54.1 billion and is forecast to reach $72.0 billion. Despite these numbers, the video game and esports market in the United States grew only by 2.4% in 2022, which is the slowest pace of growth in the past five years.

One of the market research leaders who worked on the PwC Global Entertainment & Media Outlook, CJ Bangah, shared that a post-COVID-19 pandemic market correction likely played a role in this. She added that consumers returned to regular working life and had less free time and disposable income to spend on video games. However, the researcher shared the positive prospect towards development as the growth rate is expected to increase to 5.1% in 2023. 

In the interview, the influence of Hollywood film studios on the video game industry was also discussed. CJ Bangah said that the company anticipates growth in terms of revenues. Hollywood is looking for video games to find growth. And consumers are going deep into video game experiences of all kinds.

The U.S. traditional gaming sector still generates more revenue than the total video games market of any other country apart from China and Japan. Traditional gaming revenue in the U.S. was $15 billion in 2022 and is forecast to reach $16.5 billion in 2027. Nonetheless, China surpassed the United States as the world's largest market in 2021.

Despite this, the USA will continue to be one of the major players in the global video game business, with American firms like Apple, Google, and Microsoft having a large impact on the direction that video gaming will go in the future. 

Find the full interview here and don't forget to join our 80 Level Talent platform and our Telegram channel, follow us on Instagram and Twitter, where we share breakdowns, the latest news, awesome artworks, and more.