New VIP+ Analysis: Quarterly growth of game-content spend has yet to stop, but declining growth rates for console and PC expose weak points.
Content-spend growth throughout 2020 ahead of new consoles from PlayStation and Xbox launching in Q4 was the direct result of unusual circumstances stemming from the pandemic, so it was unlikely that quarterly year-over-year growth rates would remain above 20%. Still, the first quarter of 2021 was 17.
Mobile remains the primary driver of growth for game content overall, so nothing much has changed there. Per Kagan, 2022’s first quarter saw more than $31 billion spent on mobile content, which represents a record for the sector. Meanwhile, growth for content spend on consoles and PC is stagnating amid rising preference for subscription services like PlayStation Plus and Xbox Game Pass, which grant players access to wide libraries of downloadable games for a monthly fee. Cloud gaming, a tiny but growing sector within the games market, is also offered at the highest tiers of both services.
Revenue for mobile is tied to free-to-play spending models that prioritize in-game purchases from engaged players. But even as mobile revenue grows, Kagan estimates show a slowdown in growth for sector-wide in-game monetization as well. 2021 shows $128 million stemming from in-game purchases, an 11% year-over-year increase from 2020, a year that saw in-game spend rise 33% from 2019.
This highlights how console and PC are the sectors straining content-spend growth. While the microtransaction model is
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