Newzoo recently released its latest report on the console and PC gaming market, which shows that revenue declined by 2.2% last year. However, the report stipulates that this is likely the market stabilizing once more following the pandemic-fueled growth in 2020 and 2021. In fact, most of the market’s numbers are becoming more comparable to those pre-pandemic.
According to the report, there were 1.1 billion PC players and 611 million console players in 2022. The 2.2% decline was mostly due to a 4.2% drop in the console gaming market, as the PC games market increased by 1.8%. Newzoo speculates this could be because of fewer major console releases, as the PC market is less driven by such releases.
Other numbers in the report indicate that the market is stabilizing. The average playtime for each player has dropped 20% from 2021 to 2022, with the number of players averaging 1000 hours a week dropping precipitously by 37%. Newzoo’s report also shows that the PC and console markets have become more equitable, as female and non-binary gamers make up 40% of the customer base.
Looking towards the future
Newzoo’s report also includes speculation about the near future of the market — specifically, how it will likely perform this year. For example, Newzoo predicts that consoles will be more available thanks to the mitigation of supply chain issues. An increase in supply to meet demand, as well as an increase in console-exclusive releases, could help the console market stay at its current levels.
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The report predicts that games publishers will find new ways to monetize content. Specifically, triple-A and double-A publishers will pivot their franchises towards service-based models, meaning creating new content for existing games rather than new games. It also predicts that the market will embrace hybrid monetization, including in-game advertising and subscription services.
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