1、The PC&ConsoleGaming Report20242024 Newzoo.All rights reserved.Copyright&Redistribution Notice2024 Newzoo.All rights reserved.The content of this report is created with due care by Newzoo and protected by copyrights.This report,or any portion thereof,may not be reproduced,distributed,or transmitted

2、in any form or by any means,without the express written permission of Newzoo,including photocopying,recording,or otherelectronic or mechanical methods.Reproducing,distributing,and/or transmitting this report,or anyportion thereof,for commercial purposes is explicitly prohibited.2The state of PC and

3、console gaming in 2024Welcome to the second edition of Newzoos annual PC and console report.Last year saw many highly anticipated and delayed games make landfall while significant layoffs cast a shadow over the industry.The market did recover after a slight dip in 2022,but truly significant growth i

4、s still not on the immediate horizon.Playtime is on the decline in 2024,and market consolidation is pushing more eyes and cash into the hands of fewer games and studios.Despite all of this,we remain cautiously optimistic.There are many ways to stay in the game,especially as emerging markets bring ne

5、w players to the fore and gaming weaves itself more into the mainstream.Breakout hits like Baldurs Gate 3show that well-developed games that understand and respect their player bases while offering depth can still make their mark.In this report,we explore the state of the market today,providing insi

6、ght to help stand out in a tough market.Aside from getting into trends like a downturn in playtime,this report offers insight into potential opportunities in 2024 and beyond.We also explore recent hit games to zoom in on shared best practices.This free resource draws from the Newzoo Platform,focusin

7、g on the Game Performance Monitor,with supporting data and insights from all our tools.We also delve into our Games Market Reports and Forecasts for valuable market context.We hope you enjoy reading it as much as we loved writing it.Thanks for tuning in.Tom WijmanLead Analyst3Gamers will clock infew

8、er playtime hoursCompetition is fierce,but opportunities do existThe market will grow at modest ratesPlaytime has shrunk since its peak in 2021 and is trending downward.Games that have been out for six or more years are capturing over half of playtime,and that share is increasing.Fewer publishers ar

9、e scooping up more player engagement and revenue,though players are still seeking out a diverse array of games.The barriers between PC,console,and mobile gaming are coming down.Many breakout titles from the last two years share success factors,giving insight into viable gameplay and storytelling str

10、ategies.Player growth in emerging markets is more promising than in established ones.There are still many trend-chasing gamers out there ready to jump on the”next big thing.”Executive summary Last year was massive for new game releases,but the overall market is slowing down.New player growth will fl

11、atten out in the coming years.Console gaming will be the main growth driver.Games-as-a-platforms prevalence means every new game will have to contend with Fortniteand Roblox.4PC and console gaminggenerated$93.5 billion(USD)in 2023,with+2.6%growth YoY.Average quarterly playtime hasdecreased by-26%sin

12、ce Q1 2021.90%of new game revenuein 2023 was captured byjust 43 titles.5This report mainly draws from the Game Performance Monitor,our Platforms title-level tracker,with input from the entire product suite,market analysis team,and gamer researchers.Written by Newzoos market analystsPowered by data f

13、rom our PlatformContentsThe PC and console market outlookGamers are clocking in fewer playtime hoursReckoning with a crowded marketGrowth opportunitiesWhat comes next?61.2.3.4.5.Navigate the market with Newzoo6.The PC and console market outlookGrowth will remain modest,with console as the main growt

14、h pillar moving forward43%57%Our revenues encompass consumer spending on games:physical and digital full-game copies,in-game spending,and subscription services like Xbox Game Pass.Mobile revenues exclude advertising.Our estimates exclude taxes,secondhand trade or secondary markets,advertising revenu

15、es earned in and around games,console and peripheral hardware,B2B services,and the online gambling and betting industry.$93.5Bn+2.6%YoY2023 TotalWith downloaded/boxed PC growth as a primary contributor,PC and console game revenues grew by+2.6%last year to reach$93.5 billion last year.2023 was a mass

16、ive year for game launches.Many hotly anticipated,and in some cases,delayed,titles finally made it into gamers hands,in some ways spoiling them for choice.A significant number of the years most successful games were cross-platform releases,some of which sold very well on PC,driving growth for the se

17、gment.However,much of this success didnt supplement live service revenues or back catalog sales.Premium titles cannibalized time and revenues from the live-service heavy hitters,again highlighting that live-service monetization tends to be a somewhat zero-sum game.PC games$40.4Bn+3.9%YoYConsole game

18、s$53.1Bn+1.7%YoYSource:Newzoo Games Market Reports and Forecasts|January 2024The PC and console market grew by+2.6%in 2023,with PC games contributing most to this growth8In 2023,revenue from premium transactions accounted for 56%of PC spending and 57%of console spending.Premiums revenue share was hi

19、gh on console,partly thanks to the full slate of blockbuster premium launches.The time spent playing those games took some revenue share away from recurring spending.On top of that,successful pay-to-play live service launches that generated almost half of the years revenue,like Diablo IV,still gener

20、ated more premium than recurring revenues(of course,recurring revenue for those titles should grow as a percent of total revenue over time).Switching gears from premium revenues,in-game spending accounted for 43%of PC and console revenues in 2023.The share of recurring revenues grew on PC despite th

21、e success of premium hits likeHogwarts LegacyandBaldurs Gate III.Share of yearly console revenues by category US&UK 2023Share of yearly PC revenues by categoryUS&UK 202357%33%8%56%30%12%PremiumMicrotransactionDownloadable ContentSubscription*Source:Newzoo Game Performance Monitor|PC,Xbox,PS,Switch|2

22、 Markets(US&UK)|2023*Subscription revenue is based on revenue generated from subscription-based consumer spend per title.It excludesmulti-game subscriptions,such as Xbox Game Pass.Premium transactions accounted for the highest shareof PC and console game revenues in 2023949%57%57%60%51%43%43%40%$62.

23、2 Bn+$32.1 Bn(+7.2%CAGR)$94.3 Bn-$0.8 Bn(-0.4%CAGR)$93.5 Bn+$14.1 Bn(+2.7%CAGR)$107.6 Bn20152016-2021 Growth20212022-2023 Growth2023F2024-2026 Growth2026FConsolePCRevenue growthFrom 2015 to 2021,PC and console revenue grew rapidly,reaching$94.3 billion,with growth exceeding 50%.The market will grow

24、by a forecasted$14.1 billion from the end of 2023 to 2026,a more conservative growth outlook than before the pandemic.Most of the growth will come from an expanding console install base and the rumored new Nintendo device.Other growth drivers will include the sizable library of content available on

25、next-gen consoles and household budgets shifting toward late-cycle software.Developers will have to sharpen their competitive edge in light of this more modest growth.The goal for game makers will be to capture and hold player interest while also converting players to payers at scale in this saturat

26、ed market environment.Our revenues encompass consumer spending on games:physical and digital full-game copies,in-game spending,and subscription services like Xbox Game Pass.Mobile revenues exclude advertising.Our estimates exclude taxes,secondhand trade or secondary markets,advertising revenues earn

27、ed in and around games,console and peripheral hardware,B2B services,and the online gambling and betting industry.PC and console revenue growth 2015-2026FSource:Newzoo Games Market Reports and Forecasts|January 2024PC and console revenue growth will stay belowpre-pandemic growth levels through 202610

28、756M851M867M909M449M580M625M683M2002120222023F2024F2025F2026FPC&console players growth over the years2018 2026FConsolePCPC CAGR:+4%Console CAGR:+8.9%PC CAGR:+0.9%Console CAGR:+3.8%PC CAGR:+1.6%Console CAGR:+3.0%Our PC and console forecast for 2023 to 2026 anticipates a CAGR of 1.6%for PC

29、players and 3%for console players,reaching 909 million and 683 million,respectively.The flat growth trend from 2021 to 2023F will continue as it has since the pandemic surge dwindled.Forecasted growth rates from 2023F to 2026F are significantly lower than in the period from 2018 to 2021.Slower playe

30、r growth rates will impact the industrys capacity to expand the pie via net organic growth.It will be increasingly challenging to grow a games player base,particularly in our current landscape,where evergreen titles and robust content pipelines reign supreme.Source:Newzoo Games Market Reports and Fo

31、recasts|January 2024New player growth will slow down for the PC and console market in the coming years11Want a more expansive view of PC and console player growth now and in the future?The Games Market Reports and Forecasts toolkit gives you actionable data,forecasts,and trends to make smarter and b

32、older strategic decisions.12*Call of Duty:Modern Warfare III and Counter-Strike 2share the same executable with their predecessors,and these rankings include the average MAU of those releases plus their predecessors.PC|37 Markets|20231Fortnite2Roblox3Minecraft4Counter-Strike 2&GO*5The Sims 46Call of

33、 Duty:Modern Warfare II/III/Warzone 2.0*7League of Legends8Valorant9Grand Theft Auto V10Rocket LeagueAverage years on the market9.6 yearsPlayStation|37 Markets|20231Fortnite2Grand Theft Auto V3Call of Duty:Modern Warfare II/III/Warzone 2.04EA Sports FC 245Roblox6Rocket League7Minecraft8Tom Clancys R

34、ainbow Six:Siege9Apex Legends10Fall GuysAverage years on the market7.4 yearsSwitch|US&UK|20231Fortnite2The Legend of Zelda:Tears of the Kingdom3Super Mario Bros.Wonder4Mario Kart 85Minecraft6Pokmon Scarlet/Violet7Fall Guys8Animal Crossing:New Horizons9Hogwarts Legacy10Super Smash Bros.UltimateAverag

35、e years on the market3.9 yearsXbox|37 Markets|20231Fortnite2Call of Duty:Modern Warfare II/III/Warzone 2.03Grand Theft Auto V4Minecraft5Roblox6Tom Clancys Rainbow Six:Siege7Rocket League8Starfield9Apex Legends10FIFA 23Average years on the market7.2 yearsTop 10 games by average MAU in 2023Per platfor

36、mGames ranking in the top 10 by average MAU are over seven years old on average and generally fall into one of four categoriesSource:Newzoo Game Performance Monitor|PC,Xbox,PS coverage for 37 Markets(excl.China&India)|Switch coverage for US&UK|202312Sandbox games Strengths:tools that allow for creat

37、ivity and expression;strong community;active modding community.Nintendo Switchs ranking differs significantly from the other three.It contains six exclusive titles,all of which are published by Nintendo.This makes it all the more impressive that Fortnitemanaged to top that chart,too.Gaming platforms

38、Strengths:diversity of experiences on offer;utilizing community to power content creation and brand collaborations.Starfield is the only single-player title to appear in the top 10 games by average MAU in 2023.That also makes it the only new franchise to appear in this top 10 ranking on any platform

39、 covered.Competitive multiplayer gamesStrengths:competitive nature,culminating in active esports scenes;compelling core gameplay loop.Annual franchise releasesStrengths:fan loyalty;licensing deals and roster updates(only applies to sports titles).Source:Newzoo Game Performance Monitor|PC,Xbox,PS cov

40、erage for 37 Markets(excl.China&India)|Switch coverage for US&UK|2023Whats behind the success of the top 10 PC,Xbox,and PlayStation games by average MAU?13-4%+2%-5%+3%+60%+16%+2%0%-5%+54%-12%-3%Roblox launched on PlayStation in October 2023JulFortnite and Robloxallow creators to build unique content

41、,resulting in players getting new experiences on a consistent basis.This third-party strategy lets gaming platforms like Fortniteand Robloxstay ahead of the content treadmill.Live-service games that dont go the games-as-a-platform route,in contrast,rely on internal development teams and cant release

42、 content at the same pace.While Fortniteand Robloxalready gobble up a sizable player base,engagement can balloon when certain content launches.For instance,the fall 2023 launches of Fortnite OG and LEGO Fortnite,among other releases,led to significant MAU growth(without taking too many players from

43、the Robloxecosystem).Its essential for studios to remember that they are competing with these platform behemoths for a share of limited player hours.Maintaining a viable player base or gaining new audiences is currently always in competition with Fortniteand Roblox.Source:Newzoo Game Performance Mon

44、itor|PC,Xbox,PS coverage for 37 Markets(excl.China&India)|2023Every new game release will have to compete with Fortniteand RobloxRobloxFortniteFortnite and Roblox MAU growth(%)by monthPC,PlayStation,Xbox|37 Markets|July December 202314AugSepOctNovDecFortnitelaunched OG in November 2023,and LEGO Fort

45、nite,Fortnite Festival,and Rocket Racing in the subsequent monthGamers are clocking in fewer playtime hoursOverall playtime is shrinking,while older games capture most playtime-11%-4%-1%-4%-6%-1%+3%+1%-6%1%0%Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22Q4 22Q1 23Q2 23Q3 23Q4 23Average hours per quarter played

46、 on PC,Xbox,PlayStationJanuary 2021-December 2023,with quarter-on-quarter growth ratesAs lockdowns ended across the world,players turned to other options for entertainment,stepping away from the screens that had sustained them during the pandemic.This trend has resulted in a-26%decrease in average q

47、uarterly playtime from Q1 2021 through Q4 2023.Typically,we would expect to see growth in Q4(as we did in 2022)thanks to holiday releases and more available playtime hours away from work,school,and other commitments.However,this didnt come to pass in Q4 2023.If you look ahead to this year and the ne

48、xt several,this trend will likely continue,evidenced,as well,by playtime being down by-10%in January 2024.Decreasing playtime may also be exacerbated by the relatively light release schedule expected this year.Average quarterly playtime has decreased by-26%since Q1 2021Source:Newzoo Game Performance

49、 Monitor|PC,Xbox,PS|37 Markets(excl.China&India)|-11%-4%-1%-4%-6%-1%+3%+1%-6%1%0%Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22Q4 22Q1 23Q2 23Q3 23Q4 2366 titlesaccounted for 80%of playtime80%of playtimein 2023in 2023,in line with the trend of the last two years.Average hours per quarter played on P

50、C,Xbox,PlayStationJanuary 2021-December 2023,with quarter-on-quarter growth ratesSource:Newzoo Game Performance Monitor|PC,Xbox,PS|37 Markets(excl.China&India)|2021-2023Playtime per title is trending down as overall playtime declines1761%57%45%16%24%34%23%19%21%0%10%20%30%40%50%60%70%2023202220213-5

51、 Years150,000 overlap MAUBase game:Palworld38Share of payers&time spent playingBy number of platforms played on|Base:Total playersPlatform overlapBase:Total playersPlayed onPlayed on1 platform1 platformPlayed onPlayed on2 platforms2 platformsPlayed onPlayed on3 platforms3 platformsShare of payersAve

52、rage time spent playing per week41%69%85%4h8h 24m11h 18m9%8%13%16%15%All 34%Played on 1 platform:52%Played on 2 platforms:32%Played on 3 platforms:15%Nearly half of players(47%)play on two platforms or more.Players who engage with more platforms tend to invest more time and money into gaming.This me

53、ans that expanding beyond a single platform can provide more routes to reach attractive and potentially lucrative player groups.Like any expansion strategy,the right experience and reverence for specific gaming audiences are needed.If youre thinking of expanding to the mobile market,here are some ke

54、y questions:Your games demographics will change.How will you deal with that?What does this mean for your messaging?What channels should you use to communicate with your audience?Should you enable cross-play between mobile and non-mobile versions?Does your monetization strategy fit mobile?Theres prac

55、tically no market for premium games on mobileif your game doesnt thrive off microtransactions,the best option may be licensing your game to Netflix or Apple Arcade.39The barriers between PC,console,and mobile gaming are coming downThere are players willing to cross platform boundaries to play and pa

56、ySource:Newzoo Global Gamer Study 2023(Global weighted average across 36 markets)Q.Platform player overlap,Payers(past six months),Time spent per week per platformBase:Total players(n=58,040)Players that have played on one platform(n=29,099),Two platforms(n=18,920),Three platforms(n=10,021)35%Mobile

57、 onlyTotal79%Total41%Total43%Source:Newzoo Games Market Reports&Forecasts|January 2024$40.5Bn$40.2Bn$54.1Bn$54.5Bn$51.8Bn$37.1BnIn the next several years,most new players entering the PC and console space will come from emerging gaming markets.Player numbers will grow in established and emerging mar

58、kets,but growth in the latter will far outpace the former.Emerging markets will see 23 times more player growth on the PC side of things,while emerging console player growth will eclipse established markets by more than double.In a competitive industry,emerging markets present an opportunity to grow

59、 player bases outside of commonly targeted places.Finding the right messaging and distribution channels to reach these new player segments will be an important success factor moving forward.2023F2024F2025F2026FCAGR+0.2%CAGR+4.7%CAGR+2.2%CAGR+4.8%Established markets are North America,Europe,Eastern A

60、sia(including China,Japan&South Korea),and Oceania.Emerging markets are Latin America,Africa&the Middle East,Central and Southern Asia,and Southeast Asia.Players are defined as having played a game on PC or console in the past six months.Player growth in emerging markets will significantly outpace e

61、stablished markets40Comparing player growth on PC and console in established versus emerging markets2023F-2026FPC players in established marketsPC players in emerging marketsConsole players in established marketsConsole players in emerging marketsCloud gaming awareness,usage,and interest in trying a

62、re higher than average in emerging markets.Just over 32%of the(urban)online population within the emerging markets covered are aware of cloud gaming services(almost 5%above the global average).Respondents in emerging markets score higher than the global average on experience trying cloud gaming serv

63、ices and interest in trying.Various cloud gaming service providers have successfully expanded into mobile-first regions such as Latin America,India,and Southeast Asia.These services often partner with local telco and OTT firms for reach and mostly come in the form of a subscription.Providing gaming

64、content to these services can help provide an early foothold in these markets.Yes,ARPPU for these subscription services is low,but its an opportunity to grow alongside these markets to gain a first-mover advantage.Players in emerging markets generally dont own home consoles.By removing the hardware

65、requirements(the most significant barrier to entry),cloud gaming is likely the most viable way to reach players in emerging markets,given the current economic conditions.Cloud gaming awareness in emerging marketsBase:Total(urban)online population in emerging markets*32.5%67.5%69.9%27.5%2.6%41Partner

66、ing with cloud gaming providers is a powerful way to unlock emerging marketsCloud gaming usage in emerging marketsBase:Total players aware of cloud gaming in emerging markets*AwareNot awareTried itInterested in tryingNot interestedSource:Newzoo Global Gamer Study 2023Q.Cloud gaming awareness;Tried c

67、loud gamingBase:Total(urban)online population in emerging markets*(n=32,373);Total players aware of cloud gaming in emerging markets*(n=9,821)*Emerging markets included:Brazil,Mexico,China,Indonesia,Philippines,Vietnam,Thailand,Malaysia,Argentina,India,Saudi Arabia,United Arab Emirates,South Africa,

68、Colombia,Chile,and Egypt.What comes next?There are still opportunities for growth in PC and console gaming.Despite playtime declining and competition increasing,there are still opportunities out there waiting to be seized.Retaining players will be one of the key challenges moving forward(it already

69、is),so mixing monetization models may reduce the risk when games arent able to engage players for longer stretches of time.Look to other breakout games in your genre or with other key similarities to see what resonates.Many players are working through extensive backlogs or have their default live-se

70、rvice games,so anything you release has to be more focused and polished to gain their attention.Be aware of macrotrends outside the gaming industry.PC and console gaming(and gaming in general)is constantly weaving more closely into the wider entertainment world.Many of the trends in the wider entert

71、ainment industry will also be pervasive in video games(and vice versa).For game makers,transmedia storytelling has never been as prevalent as it is now.The second highest-grossing movie of 2023 was The Super Mario Bros.Movie,and the HBO adaptation of The Last of Us raised the bar on storytelling acr

72、oss the entire TV medium.Transmedia strategies may be the right lever to pull for your studio,though you must have a very clear and guarded approach to how your IP can be used.Emerging markets will provide a cohort of new,excited gamers.New player growth may be stagnating in Western markets,but emer

73、ging markets are brimming with new players.The PC and console player base in emerging markets is growing quickly.Reaching these players is a solid play for AAA and indie studios alike.Of course,reaching new players in emerging markets or really any market requires sharp strategic thinking.Its not a

74、one-size-fits-all solution.Embracing cloud gaming may be a more prevalent way to reach these emerging markets,as it removes many technical barriers to giving more players access to huge games with heavy hardware requirements.The PC and console market may be in a tough spot,but there are many ways to

75、 stay ahead of the game42Global GamerStudyExplore the global gamer audiences across all dimensions with the largest gamer research study.Game HealthTrackerTrack brand health and purchase funnel data over time for hundreds of games.GAMER RESEARCHGame Performance MonitorUnlock title-level engagement a

76、nd revenue data for thousands of PC and console games.GAMES DATAGames Market Reports&ForecastsDiscover games market sizing,forecasts,and trends on a global and local level.MARKET ANALYSIS&CONSULTINGNavigate the market with NewzooKnow the GamesGenre deep dives and game teardownsTarget audienceanalysi

77、sLive service gamestrategyGame concepttestingCampaignanalysisConcept TAM andsales forecastingConsulting&custom researchTailored consulting and research projects for every stage of the game development and operation lifecycle.Learn moreNewzoo PlatformKnow the GamersKnow the Games MarketLearn moreLear

78、n moreLearn moreLearn more43Game Performance Monitor37 marketsGame Health Tracker1 marketGlobal Gamer Study36 marketsGames Market Reports&Forecasts100 markets,35 in-depth44Size and seize opportunities in markets worldwideWith games,gamer,and games market data and insights spanning 45 countries and m

79、arketsL Isaac SimonSenior Writer&EditorTom WijmanLead AnalystContributorsBen PorterDirector ConsultingAlexis PamborisResearch DirectorWriting and analysisDiego Rondon TelloDirector of MarketAnalysis&ConsultingMary BruneHead of Consumer InsightsOrla MeehanResearch ManagerMichiel BuijsmanSenior Market

80、 AnalystDesignSpyros GeorgiouDesign LeadNgoc Linh NguyenVisual Design InternTyler LongDirector of Product Devan BrennanManagement Consultant Michael WagnerSenior Market Analyst45Brett HuntBusiness DevelopmentEditingMeet the authors of this reportJoin thousands of leading PC and console studios who f

81、orge ahead equipped with Newzoos Platform data and ConsultingIm in a privileged position to see the great value we get from collaborating with Newzoo and having access to Newzoos Game Performance Monitor.As we work together with data analysts,brand managers,and product managers,we can all use the platform to complement our research and investigations,each bringing our knowledge and expertise to the decisionmaking process based on insightful data.Nicholas SweeneyHead of Insights at Behaviour InteractiveContact usTake the product tour