Bain & Company’s very interesting report

Bain & Company published a very interesting report about gaming (not only mobile). I believe it adds value to go over the report.

Main insights from the report
🔹 𝐌𝐚𝐫𝐤𝐞𝐭 𝐯𝐚𝐥𝐮𝐞: According to Bain & Company report, the global market for video game revenue reached $196 billion USD in 2023, more than the combined revenue from streaming video ($114 billion USD), streaming music ($38 billion USD), and global box-office receipts ($34 billion USD)
🔹 𝐆𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐭𝐡𝐞 𝐠𝐚𝐦𝐢𝐧𝐠 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲: The report forecasts the gaming market to grow at approximately 6% annually through 2028  reaching $257 billion by 2028.
🔹 𝐘𝐨𝐮𝐧𝐠 𝐠𝐚𝐦𝐞𝐫𝐬 𝐝𝐫𝐢𝐯𝐞 𝐭𝐡𝐞 𝐠𝐫𝐨𝐰𝐭𝐡: 52% of people surveyed play video games regularly. But the clearest source of future growth comes from the youngest players (2 to 18 years old), 80% of whom identified as gamers in the survey. Younger consumers spend a greater share of their entertainment budget on video games than older players (around 30%).
🔹 𝐆𝐚𝐦𝐢𝐧𝐠 𝐢𝐬 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐠𝐚𝐦𝐞𝐩𝐥𝐚𝐲 – (ie, socialising with friends, so many of these younger players consider gaming platforms such as Roblox or Fortnite a social community, similar to the way adults view WhatsApp or Facebook)
🔹 𝐆𝐚𝐦𝐞𝐫𝐬 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐩𝐥𝐚𝐲 𝐚𝐜𝐫𝐨𝐬𝐬 𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦𝐬 𝐚𝐧𝐝 𝐝𝐞𝐯𝐢𝐜𝐞𝐬: Nearly 70% of gamers play on at least two devices, and half said that they would like to see more accessibility across devices in future games.
🔹 𝐂𝐫𝐨𝐬𝐬-𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬 𝐚𝐫𝐞 𝐠𝐚𝐢𝐧𝐢𝐧𝐠 𝐭𝐫𝐚𝐜𝐭𝐢𝐨𝐧: 95% of game development studios with more than 50 people are working on cross-platform games.
🔹 Gaming IP is taking share in other media: More than half of gamers watched a show or movie based on a video game over the past year (an increase of 10 percentage points over 2022)
🔹 𝐆𝐫𝐨𝐰𝐭𝐡 𝐨𝐟 𝐦𝐨𝐛𝐢𝐥𝐞 𝐠𝐚𝐦𝐢𝐧𝐠 – Mobile gaming represents slightly more than half of the global gaming market and the report estimates that number to grow given the ubiquity of devices.
🔹 𝐌𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐢𝐧 𝐦𝐨𝐛𝐢𝐥𝐞 𝐠𝐚𝐦𝐢𝐧𝐠 – on average gaming companies with revenue less than $1 billion spend about 25% of their revenue on marketing and some spend much more (that’s higher than spending at other software companies, which spend about 15%)
🔹 𝐌𝐨𝐛𝐢𝐥𝐞 𝐠𝐚𝐦𝐢𝐧𝐠 𝐢𝐬 𝐚 𝐡𝐢𝐠𝐡-𝐫𝐢𝐬𝐤 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 – the chance of failure is greater than in many other industries: more than 40% of all gaming companies with more than $10 million in revenue may see a decline in that revenue over a three-year period, compared with only 10% to 20% for other types of software businesses.

Link to report: https://lnkd.in/dGH_FGis