A report published today has revealed that while North America and Europe only make up 20% of the global gaming player base, these two key markets drive nearly half of all the industry’s annual revenue. 

Many players in these regions play games for free, while others spend money to either purchase a game, or on subscriptions or in-app purchases, like customizable character skins. However, growth in paying player counts has slowed in both these regions. The report says game studios must now look beyond simply growing player counts, and that “evolving monetization strategies will be key to driving value and engagement.”

These findings are from the whitepaper Unlocking Games Revenue: Player Behavior and Payment Trends in the West, by the gaming data firm Newzoo and gaming monetization platform Tebex. The report leveraged Tebex’s payment data to identify emerging spending trends that studios can use to unlock new value for their titles. 

Here are the key findings from that report: 

Global games market: Projected to hit US$188.9 billion in revenue this year, with North America and Europe accounting for 46% of spending. 

Total North American players: 249 million (including paying and non-paying players) 

North American spending: 162 million paying players spend US$52.7 billion annually, averaging US$324.9 per player.

Projected player growth in North America 2023-2027: +1.1%  

Total European players: 462 million (including paying and non-paying players)

European spending: 264 million paying players spend US$33.1 billion annually, averaging US$125.4 per player. 

Projected player growth in Europe 2023-2027: +3.1%

In-game purchases drive revenue growth: Sales of microtransactions, subscriptions and additional downloadable content account for 99% of sales on mobile, 50% of sales on PC and 48% of sales on consoles. 

Top five performing genres in NA: 

1. Shooters
2. Role playing
3. Puzzle
4. Sports
5. Adventure 

Core reasons for NA spending: Players in this market enjoy spending more to unlock extra content (34%) and personalizing their in-game characters (29%). 

Top five performing genres in Europe:

1. Sports
2. Shooters
3. Role playing
4. Puzzle
5. Adventure

Core reasons for European spending: This market prioritizes value by searching for sales (28%), unlocking additional content in existing titles (27%) and paying to play with friends or family (23%). 

Newzoo remarks: “With modest payer growth in North America and Europe, studios must shift focus from acquiring new payers to maximizing value from existing ones. Aligning monetization with how and why players choose to spend is essential to driving engagement and revenue.”