The global video game revenue in 2023 grew by 0.5% year-on-year to $183.9 billion, according to Newzoo.
The US ($46.7 billion) and China ($44.6 billion) were the largest markets, accounting for 50% of total video game sector spend.
In 2022, Africa’s video gaming industry revenue was estimated at $863 million with Newzoo projecting revenue to surpass $1 billion in 2024, accounting for 0.5% of global video gaming revenue. South Africa ($236 million) and Nigeria ($249 million) accounted for more than 50% of the continent’s sector revenue aided by strong market penetration. This is mostly attributed to improving internet penetration, accessibility of smartphones (mobile gaming accounted for more than 85% of revenue) and growing youth population playing games.
Globally PC games (up 5.2%) and console games (up 1.9%) were the only segments that grew and accounted for 50% of video gaming revenue. This was due to sales for games such as FIFA23 (before the end of EA sports and Fifa licencing agreement on September 2023), selling more than 23 million units and contributing significantly to the $7.6 billion earned by EA Sports, and new releases for Final Fantasy XVI (released June 2023), Spider-Man 2 (released October 2023) and EA Sports FC 24 (released September 2023 and previously FIFA).
Sony’s PlayStation 5 sold the most consoles (22.5 million consoles) and grew 65% from 2022, followed by Nintendo Switch with 16.4 million consoles (down 18%) and Xbox Series X/S with 7.6 million (down 15%).
South Africa’s video game industry
South Africa’s gaming industry revenue increased 52% to R7.3 billion in 2023. The country’s gaming industry is expected to continue to grow, driven by increasing smartphone penetration (79% in 2024) and a growing youth population with a keen gaming interest — 47% of gamers are aged 14 to 28 years. The industry encompasses console gaming, PC gaming, mobile gaming, and esports (electronic sports) with mobile gaming accounting for most of its revenue (91%). PC gaming (5%) and console gaming at (4%) rank second and third, respectively. Popular PC and console games include Call of duty, Fortnite, FIFA, Roblox and Grand Theft Auto. The country has 26.5 million gamers, 85% of which are mobile gamers and 15% console and PC gamers.
Video gaming equipment, ranging from high-performance PCs and consoles to peripherals such as controllers, headsets and gaming chairs, are essential for the gaming industry. In 2023, South Africa imported electronics (including smartphones, PCs, video game equipment and electronics accessories such as headsets) valued at R51 billion. Of this stock, video game equipment imports increased the most, appreciating 59% to R1.1 billion in 2023. Key imported equipment included Microsoft’s Xbox, Sony’s PlayStation, and PC gaming equipment. Based on a larger game catalogue, Sony (PlayStation) accounted for 66% of the country’s game console market share, followed by Xbox at 21%.
