Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 46

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 4
Chunk 46
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 in
revenue in 2025. While mobile games have grown to now account for approximately 49% of the global games market revenue, PC and console
gaming was a major growth driver. It is also projected that the global games market will grow to $213.3 billion by 2027.

The
number of players worldwide is projected at 3.42 billion in 2024, an annual growth rate of over 4.5% from 2023. Based on Newzoo’s
Global Market Report 2024, it is estimated that over 53% of the 3.42 billion gamers are from the Asia-Pacific region. Most of this
growth is driven by player growth in Central and Southeast Asian markets.

Video
game sales and distribution was one of the handful of businesses positively affected by the COVID-19 pandemic, driven by the demand for
more home entertainment. Game-related engagement is sticky, and we believe many players who entered the market during the early lockdown years
of the pandemic will continue to be engaged with video games in one form or another. Historically, the video game industry has proved
to be relatively resilient during periods of economic downturn since gaming offers a cheaper home entertainment alternative to the large
ticket discretionary spending items.

Video
game piracy is when an individual, group, or business copies and/or distributes video game software without the authorization of the
intellectual property owner of the video game. By making unauthorized copies of the games or allowing players to download games for free
or at a reduced price, scammers are taking profit from game developers, publishers and studios. Game piracy is a global issue in the
gaming industry. Based on a survey published by QATestLab on November 16, 2022, around 1 in 10 gamers have illegally downloaded or played
a pirated video game over the past three months 2

We
believe that the overall entertainment industry is converging towards transmedia, a trend in which game companies bring their game IP
to film, television, and other media to expand the reach of their franchise and bring consumers back to their core game franchise. By
growing our business into game publishing, game creation and game IP investment, we believe we are well-positioned to move up the value
chain in the game creation process to build our game IP and potentially monetize game IP through transmedia.

   2      https://advanced-television.com/2022/10/11/survey-video-game-pir