Gaming is second-highest consumer revenue generating sector: PwC

Gaming in Australia remains one of the biggest winners in the post-pandemic entertainment and media landscape, and the second-highest consumer revenue-generating sector, according to PwC’s latest Australian Entertainment and Media Outlook.

However, the report noted the industry is on the cusp of change, with many aspects of this sector “promoting innovation and development”, each with its own hurdle to overcome in the next few years.

The Gaming sector sits behind the highest consumer revenue-generating sector, Internet Access, with total interactive games revenue reaching A$4.92 billion in 2021, representing year-on-year growth of 12.1%.

Furthermore, Social Gaming, having increased by 18.3% in 2021 to A$2.02 billion, will remain strong with the ongoing adoption of 5G for anywhere-gaming and the transition towards free-to-play and digital-only versions of games. This sub-sector is forecast to reach A$2.92 billion by 2026 at a CAGR of 7.7% based on the midpoint scenario.

PwC’s report cited that “traditional gaming revenue increased by 7.7% in 2021 to A$1.6 billion, despite physical sales (across both PC and consoles) continuing its structural decline by 8.4% to A$356 million.

This coincides with further sales of digital-only consoles released in this most recent console generation. This generation’s lifecycle could see an extension due to the ongoing supply restrictions on semiconductors that limit the availability and sales of PC hardware, and consoles alike.

The report showed, however, that this will not impact the sale of digital purchases, which based on the midpoint forecast, are expected to support the growth of gaming purchases at a 2021-2026 CAGR of 7.5%, reaching $2.3 billion by 2026.

In addition, following suit with other E&M segments, subscription is on the rise in Gaming. Game subscription services, regardless of the device used to play, have grown to the fourth most popular platform for gaming behind consoles, mobile, and PC, and reach 48% of households according to the Interactive Games and Entertainment Association (IGEA). Subscription services are expected to continue to grow in popularity and service offering.


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