Global Video-Game Market Gears Up for Strong Recovery Driven by Xbox and PlayStation 5 Sales

Research firm NewZoo predicts a strong recovery in the global video-game market in 2024, with an anticipated 2.8% growth to $189.3 billion, following a marginal increase of 0.6% in the previous year. Sales of Microsoft’s Xbox and Sony’s PlayStation 5 consoles are expected to be key drivers, and while live-service games have played a significant role in revenue, there are signs of a shift towards premium games. The industry is forecasted to maintain continuity in 2024, with potential slowdowns in gaming subscription services.

23 January 2024 – The global video-game market is poised for a robust recovery in 2024, fueled by strong sales of Microsoft’s Xbox and Sony’s PlayStation 5 consoles, according to research firm NewZoo. After a marginal 0.6% growth last year, the market is anticipated to surge by 2.8% to reach $189.3 billion, marking a turnaround from the post-COVID decline that led to layoffs in the industry.

Following a 4.3% contraction in 2022, the gaming market experienced a recovery in 2023, driven by the release of major titles like Electronic Arts’ “Star Wars Jedi: Survivor,” “FC 24” soccer title, and Warner Bros Discovery’s “Hogwarts Legacy.” Despite a potentially less impressive release catalog in 2024, NewZoo predicts growth in console sales driven by live-service games and back catalog sales.

Sony shares a similar outlook, anticipating the sale of 25 million units of its PlayStation 5 in the 12 months ending March, propelled by a new, slimmer version of the device. While live-service games like Epic Games’ “Fortnite” have been pivotal in revenue generation, there are indications of a shift as user engagement data from 2023 reveals a move towards premium games.

Furthermore, NewZoo observes a potential slowdown in the growth of gaming subscription services such as PlayStation Plus and Xbox Game Pass, where users pay a fee for access to a variety of titles. Despite potential disruptions, Ubisoft Entertainment’s Market Strategy Manager, Romain Bingler, suggests that 2024 is expected to maintain continuity with recent trends rather than significant upheavals. – ref: Reuters

Author: Terry KS

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