Personal computing and console gaming revenue growth is projected to remain below pre-pandemic levels through 2026, as gamers log fewer hours of playtime. According to research firm Newzoo, the market is expected to grow by 2.7 percent from the end of 2023 to 2026, a significant drop from the 7.2 percent growth rate experienced between 2015 and 2021.
The average quarterly playtime among gamers has decreased by 26 percent from 2021 to 2023, a trend that is anticipated to persist this year. Weaker gaming release schedules are contributing to this decline, with a reported 10 percent drop in playtime during January.
Newzoo highlights that \"slower player growth rates will impact the industry's capacity to 'expand the pie' via net organic growth.\"
Leading companies are feeling the effects of this slowdown. In February, Japan's Sony Group announced that it does not expect to release any new major franchise titles, such as \"God of War\" and \"Marvel's Spider-Man,\" in the upcoming fiscal year. Additionally, Sony has reduced its full-year sales forecast for PlayStation 5 consoles due to weaker-than-expected holiday sales.
Industry giants like Sony, Tencent Holdings' Riot Games, and Electronic Arts have laid off hundreds of employees and scaled back operations this year. The gaming sector is also witnessing increased consolidation, with fewer publishers holding a large share of player engagement. The Newzoo report indicates that between 28 and 34 publishers commanded 80 percent of monthly active users each month in 2023, a number that has been decreasing since 2021.
Five popular titles—Epic Games' \"Fortnite,\" \"Roblox,\" \"League of Legends,\" \"Minecraft,\" and \"Grand Theft Auto V\"—captured 27 percent of all playtime last year. Fortnite and Roblox, in particular, have thrived with their games-as-a-platform models, allowing players and creators to add content and helping these platforms stay ahead of the content treadmill, according to Newzoo.
Reference(s):
PC, console growth to lag pre-pandemic levels as gamers play less
cgtn.com
