April 20, 2024

Tech: MEA’s Gaming Earnings Projected to Hit $7.2 Billion in 2023, with Saudi Arabia Emerging as a Prominent Contributor

_Gaming Industry

_Gaming Industry

Last Updated on November 13, 2023 by newseditor

The Middle East and Africa’s (MEA) gaming industry is anticipated to generate $7.2 billion in revenue in 2023, with Saudi Arabia emerging as a significant player in the sector’s expansion.

The global gaming industry is predicted to earn $187.7 billion in sales in 2023, representing a 2.6% year-over-year growth, and $212.4 billion in annual revenues by 2026, according to the Global Games Market Report by the video game and gamer analytics company Newzoo.

Driving Forces of MEA’s Gaming Industry Rise

More details from the reports noted that consoles will overtake mobile as the market’s second-largest category, bringing in $56.1 billion in 2023 to account for 30% of the total market, while mobile will continue to account for just under half of consumer spending in the gaming industry.

By 2023, the number of players will surpass 3.3 billion, with a rise in players who would pay to play, according to Tom Wijman, the Lead Games Analyst. He added that the market will resume growing in 2023 following a corrective shift brought on by the pandemic.

Wijman credited this surge to several eagerly awaited titles that were finally released in 2023 after being postponed, with more slated for release in H2, as well as the supply of new consoles has now caught up to the demand.

With 574 million gamers and the fastest annual player growth rate ever seen (12.3%), MEA makes up 17% of all players worldwide.

An improved mobile internet infrastructure, readily available and reasonably priced mobile internet, and the expansion of the middle class are among the factors cited in the research as driving this increase.

The fact that games are often free to play and the number of people who have smartphones is on the rise are also reasons why games can be an affordable hobby.

According to the Social Development Bank (SDB) of the country, KSA is establishing itself as the MEA region’s leader in gaming investments, with plans to increase the value of the Kingdom’s video games sector to $2.5 billion by 2030.

According to the Newzoo study, companies like the Savvy Games Group of Saudi Arabia, which has committed about $8 billion to acquire and establishing ownership in international game brands, are responsible for the industry’s expansion in the region. The company also has a large $38 billion fund to help with future business efforts in the sector. Savvy has also secured a stake in China’s esports agency VSPO, Sweden’s Embracer Group, and the acquisition of the US-based Scopely.

In addition, KSA is also hosting the gaming and esports event Gamers8: The Land of Heroes, which has a prize pool of $45 million.

Conclusion

Saudi Arabia’s major role in this achievement demonstrates its dedication to advancing technology and diversifying its economy. The cooperation between governments, private businesses, and gamers will be essential in determining the industry’s trajectory in the years to come as the area continues to embrace the gaming culture.

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