According to research by analytics company Newzoo, gaming consoles will be the key driver of video game market growth until 2027. The main drivers will be the upcoming blockbuster Grand Theft Auto VI from Take-Two Interactive and the new Nintendo Switch 2 console.
Image source: Yasin Hasan / Unsplash
The economic instability following the pandemic and high inflation have had a negative impact on consumer spending on games and gaming consoles. As a result, the industry is facing mass layoffs, studio closures and the cancellation of promising projects in 2024. However, analysts expect that the launch of a new console from Nintendo in the summer and the release of GTA VI this fall will help the market recover, especially since, as Reuters writes, there are prerequisites – the previous part of GTA became one of the most profitable video games, having sold more than 210 million copies.
According to Emmanuel Rosier, director of market insights at Newzoo, major console releases like Sony’s Spider-Man and God of War are driving up the amount of time players spend on consoles, though he noted that “AAA and AAAA games have less of an impact on the PC market” as PC owners tend to stick with older titles.
According to a report from Newzoo, total gaming time is expected to increase by 6% through 2024, with the largest increase coming in Q4, driven by the release of Blizzard’s new Call of Duty title. Console software revenue is expected to grow by 7% from 2024 to 2027, significantly outpacing PC revenue growth (2.6%). By 2027, consoles will account for more than 56% of the total PC and console market revenue, which will be $92.7 billion.
Experts believe that upcoming releases will help accelerate the recovery of the video game market, and the success of GTA VI and the new Switch could be a decisive factor for the growth of the console sector, which is expected to lead to increased revenue and player engagement in the coming years.