Kate Mills
Jan 24, 2024
The global video-game market is anticipated to grow in 2024, primarily driven by robust sales of Microsoft's Xbox and Sony's PlayStation 5 consoles, according to research firm NewZoo.
The market is forecasted to grow by 2.8% to reach $189.3 billion in 2024, following a marginal 0.6% increase in the previous year, indicating a rebound from the post-COVID decline.
After experiencing pandemic-induced growth for two years, the gaming market faced a 4.3% decline in 2022 due to factors such as high interest rates, persistent inflation, and a lack of major game releases.
However, the recovery in 2023 was fueled by the launch of significant titles, including Electronic Arts' "Star Wars Jedi: Survivor" and "FC 24" soccer title, along with Warner Bros Discovery's "Hogwarts Legacy."
Reuters, citing NewZoo, reported: "Even though this year's release catalogue is expected to be less impressive than 2023's packed schedule of much-anticipated hits, live-service games and back catalogue sales will drive growth" in console sales in 2024.
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Sony also shares this optimism, projecting the sale of 25 million units of its PlayStation 5 in the next 12 months, sustained by the introduction of a new, slimmer version.
While live-service games like Epic Games' "Fortnite" have been a major revenue driver, there are signs that this model is under pressure. NewZoo reported a shift in user behaviour away from live-service games toward premium games. Additionally, the growth of gaming subscription services like PlayStation Plus and Xbox Game Pass is expected to slow in the coming year.
Ubisoft Entertainment Market Strategy Manager Romain Bingler emphasised continuity in the industry, stating, "2024 should not be marked by as many major disruptions and should instead remain in a form of continuity with what has already been observed recently."
"2024 should not be marked by as many major disruptions and should instead remain in a form of continuity with what has already been observed recently," Ubisoft Entertainment Market Strategy Manager Romain Bingler reported.
