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FY 2024 is expected to be a significant year in the gaming industry. Sony has recently launched its latest console, Playstation 5 Pro, and Nintendo is also expected to release Switch 2 before the end of the fiscal year. Understandably, as per the numbers presented by Nokyc.com, gaming hardware sales are expected to contribute a significant 35.5% of the total revenue generated by the gaming industry in 2024.
In-game advertising and mobile games are the next big sources of revenue
The gaming industry is expected to generate $455.27 billion in revenue in 2024, per the Statista market insights. Of the total amount, gaming hardware sales are expected to contribute $166.6 billion, or 35.5%. Thus, hardware sales continue to be the biggest source of revenue in the gaming industry.
In recent years, in-game advertising has become a significant source of income for video game developers, especially in mobile games. In 2024, developers/publishers stand to earn $109.63 billion from ads in their games. The ad revenue makes up 24.1% of the total amount. Thus, almost one-fourth of the income in the gaming industry is set to come from ads in 2024.
Mobile games are the next biggest earners in the gaming industry. According to the report, mobile games are set to generate, from sales or in-game purchases, $98.74 billion in revenue in 2024, making up 21.7% of the entire revenue.
Online games are the next big source of revenue with $27.97 billion, followed by digital game sales at $21.47 billion in annual revenue.
Video gaming live streaming is also a significant source of revenue for the industry. Streaming is expected to produce $13.65 billion in 2024. The sale of physical games is just behind streaming, with an expected income of $11.28 billion.
Cloud gaming is expected to add $6.91 billion in revenue, which amounts to just 1.5% of the total value. In the coming years, the share of revenue from cloud gaming is expected to get bigger. Gaming networks, like PS Plus, are expected to bring another $3.96 billion to make up the entire amount.
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