According to Tom Wijman, lead analyst at Newzoo, significant growth in the gaming market is not expected in the near future. Wijman remains cautiously optimistic and believes that there are opportunities to find new players, compete for playtime, and connect gaming with mainstream media.
The decline in playtime hours can be attributed to the fact that people returned to their pre-pandemic habits. During the pandemic, playtime hours dramatically increased, leading game companies to expand with new employees and studios. However, as people returned to their normal routines, the business stalled, resulting in layoffs of 10,500 people in 2023 and an additional 8,000 in the following year.
Despite these challenges, the PC and console market saw modest growth in terms of revenue. In 2023, the market generated $93.5 billion in revenue, representing a 2.6% increase compared to the previous year. However, average quarterly playtime decreased by 26% since the first quarter of 2021. Players spent over 60% of their playtime on games that were released six or more years ago.
Interestingly, games that are six years old or older accounted for 60% of PC/console game revenue. This suggests that older games still have a significant impact on the market and continue to generate revenue for game companies.
The report also highlighted the dominance of franchises that release annual installments, such as Call of Duty, NBA2K, and EA FC. These franchises accounted for 60% of new game playtime in 2023, equivalent to 15% of total playtime. This indicates the popularity and continued success of these franchises among players.
While the overall market faces challenges, there are bright spots in emerging markets. PC and console players in emerging markets are expected to experience compound annual growth rates (CAGRs) of +4.7% and +4.8%, respectively, from 2023-2026. This presents an opportunity for game companies to tap into these markets and expand their player base.
For more detailed insights and information, the full PC and console gaming in 2024 report can be downloaded for free on the Newzoo website.
Overall, the gaming market has shown moderate growth in terms of revenue, but playtime hours have declined, indicating a shift in consumer behavior. Game companies will need to adapt their strategies to attract new players and compete for playtime. The success of older games and annual franchises demonstrates the importance of maintaining a strong presence in the market. Additionally, emerging markets present a promising opportunity for growth in the coming years. While significant growth may not be immediate, the gaming industry continues to evolve and adapt to changing trends and player preferences.
