According to Newzoo, gamers in North America typically spend around $325 each year

According to a recent analysis, gamers in North America invest around $325 each year in gaming, which represents 28% of the world's market expenditure.

Released on August 12, 2025, the study by Newzoo and Tebex delves into gaming habits and payment preferences in Western countries.

The insights reveal that player growth in the Western gaming market is losing momentum. North America experiences a compound annual growth rate (CAGR) of 1.1%, while Europe sees 3.1% from 2023 to 2027. The report by Newzoo and Tebex advises game developers to focus on capitalizing on existing gamers rather than trying to recruit new ones.

The global gaming sector is valued at $189 billion, showing a 3.4% increase from the previous year, with North America and Europe comprising 28% ($52.7 billion) and 18% ($33.1 billion) of this, respectively.

Though only housing 20% of the gaming population (3.54 billion individuals), North America and Europe collectively generate 46% of the global gaming revenue.

Among North American gamers, the average yearly expenditure is $325, the highest worldwide. In contrast, players in Europe spend approximately $125. Overall, gamers in the West shell out $170 each year, which is more than threefold the average spending of $51.60 by gamers in Eastern regions.

Reasons for spending differ across these areas. For instance, 34% of North American players allocate funds for exclusive content, while 29% focus on personalization and character upgrades.

Conversely, European gamers are driven by discounts and offers (28%) and ad-free gaming experiences (21%). The report suggests that "discounted bundles and subscription packages could boost conversion rates in Europe."

Spending habits vary across countries. In North America, 27% of players opt for content packs, power-ups, and in-game currencies, while 24% choose subscriptions, and 23% buy battle passes.

European players prioritize in-game currencies and content packs (21% each), subscriptions (20%), and gear and efficiency-enhancing features (18%).

Microtransactions account for a significant share of North American gaming revenue, comprising 49% of PC and 52% of console income, with shooter games as the top pick. Europe sees similar trends but with sports games leading, contributing to 42% of PC and 51% of console earnings. The revenue from mobile gaming is "nearly entirely derived from in-game purchases."

The report recommends that businesses in Western regions can "greatly elevate" average transaction values (ATVs) by incorporating diverse payment options, like Buy Now Pay Later and cryptocurrencies, "without reducing the number of transactions."

"Players today demand transparency about what they're paying for," states Liam Wiltshire, Tebex's head of payments and compliance. "Getting the monetization strategy right is more crucial than ever."