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Analysis of the PC and Console Gaming Market in 2023
The PC and console market experienced a modest growth of 2.6% in 2023, as detailed in the second annual report provided by the reputable market research firm, Newzoo. Despite this growth, there was a noticeable decline in playtime hours throughout the year, indicating a shift in consumer behavior within the gaming industry. The report also forecasts a decrease in the number of players over time, highlighting a potential trend that may impact the market in the coming years.
Insights from Newzoo Report
Newzoo’s lead analyst, Tom Wijman, emphasized that while the games market showed signs of recovery after a minor setback in 2022, significant growth remains elusive in the near future. The data and analysis presented in the report offer valuable insights into the evolving landscape of the gaming industry, pointing out trends and strategies to attract new players, compete for playtime, and integrate gaming into mainstream media.
One significant observation from the report is the correlation between the expansion and subsequent layoffs within game companies. The surge in playtime hours during the pandemic prompted companies to hire additional personnel and establish new studios. However, as playtime hours declined in 2023 and 2024, many companies were forced to downsize, resulting in over 18,000 job cuts in total.
Key Findings from the Report
- Newzoo’s projection of PC and console revenue growth in 2023, reaching $93.5 billion.
- Contrary to revenue growth, average quarterly playtime saw a 26% decrease since Q1 2021, with players spending the majority of their time on games released six or more years ago.
- Games aged six years or older contributed to 60% of PC and console game revenue, indicating the lasting appeal of established titles.
- About 60% of new game playtime in 2023 was dedicated to franchises with annual installments such as Call of Duty, NBA2K, and EA FC.
- Emerging markets show potential growth, with forecasted compound annual growth rates of +4.7% and +4.8% for PC and console players, respectively, from 2023 to 2026.
For a more in-depth analysis of the PC and console gaming market in 2024, interested parties can access the complete report on the Newzoo website. The report provides valuable insights into the industry’s current state, future projections, and recommended strategies to navigate the evolving landscape of gaming.
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