Xsolla issues State of Play report winter 2024 edition

Xsolla issued the winter 2024 edition of its The State of Play report on navigating the transformative era of gaming.

The global video game commerce company said the report is a strategic guide providing a comprehensive overview of the gaming industry’s past, present, and future. This report delves into industry trends, shedding light on the dynamic landscape that developers and stakeholders are set to navigate in 2024.

The report reflects on the gaming industry’s journey over the past five years while offering key insights into its future trajectory.

Berkley Egenes, chief marketing & growth officer of Xsolla, said in a statement, “As we unveil The State of Play Winter 2024 Edition, it’s clear the gaming industry is navigating a transformative era. This report, rich with data and insights, is a testament to our commitment to empowering developers and industry stakeholders. It offers a deep understanding of the market dynamics and emerging trends, crucial for shaping strategies and embracing the future of gaming.”

The Winter 2024 Edition features contributions from industry professionals such as Aisyah Ambok from PlayStation Studios Malaysia and Walter Souto, head of product for cloud gaming at AWG. By incorporating diverse viewpoints, the report aims to provide a holistic view of the gaming landscape, considering the opinions of seasoned experts.

The report spotlights the growing influence of women in gaming, emphasizing the evolving roles and the significance of diversity within the industry. It also explores the resurgence of mobile gaming and the ascendancy of cloud gaming, offering insights into sectors poised for significant growth. (Xsolla is sponsoring the Women in Gaming breakfast at our upcoming GamesBeat Summit 2024 event on May 20-21 in Los Angeles).

One of the report’s focal points is funding in the gaming sector, meticulously analyzing investment trends, mergers, acquisitions, and innovative fundraising methods. This examination aims to provide readers with a clear understanding of the financial dynamics propelling the industry forward.

Report details

I’ve gone through the report and Xsolla has a lot of data. The company said 40 of the top 100 mobile games have launched web shops using Xsolla tools, and it assisted more than 151 games altogether in launching web shops, said Chris Hewish of Xsolla.

Xsolla said the global games market is expected to show sustained growth, generating revenues of $211.2 billion by 2025. Mobile games are set to dominate, with an estimated contribution of $103.1 billion driven solely by user spending. Meanwhile, cloud gaming is emerging as a significant disruptor, with an expected revenue of approximately $8.2 billion. Additionally, the VR gaming sector is projected to gain traction, yielding around $3.2 billion in revenue by 2024.

These forecasts underscore the diversification and dynamism within the gaming market, presenting both opportunities and challenges for industry stakeholders, the report said.

One of the interesting sections is on real-time payments, which have emerged as a transformative force in global electronic payments, with nearly 28% of all electronic payments worldwide projected to be real-time by 2027 — a remarkable year-on-year growth rate of 63%.

This shift is captivating users with its advanced user-friendly features, Xsolla said. The growth of real-time payments can be attributed to many factors, with success stories in multiple geographies. One example is Brazil’s introduction of PIX in 2020, a digital, low-cost, QR-code-based payment method. Since then, PIX has swiftly gained traction with 131 million users actively transacting through the platform. As a result, Brazil has emerged as the third fastest-growing real-time payments market, achieving a year-over-year growth rate of 228.9%.

Instant payments offer more than just speed, convenience, and confidence. They also promote financial inclusion, particularly for the unbanked population. Thailand’s PromptPay, for example, enables users to make and receive payments using their phone number, citizen ID, or QR code, bridging the gap between the unbanked and the financial world, the report said.

The report also goes into the implications of privacy regulations. And it looks at the Epic vs. Apple antitrust case. Xsolla said the case has marked the beginning of a shift in platform policy.

Despite Epic not securing a victory on their core demands (such as the permission to use third-party payment systems), they initiated changes in the distribution and monetization of mobile apps. The European Union’s Digital Market Act and DSA are set to make platforms more open, providing developers with opportunities for more advantageous distribution and monetization of their games, the report said.

The market has recognized that Apple and Google are not inclined to soften their guidelines, let alone relinquish their 30% fee. In countries like South Korea, where payments through third-party systems are allowed, Google still charges 26%, rendering the use of external systems unprofitable, Xsolla said. There’s a lot more in the report.

Originally appeared on: TheSpuzz