Console Gaming Losing Momentum; Entire Market to Grow by a Modest 1.6% and Hit a $61B Value by 2026

Whereas PCs have all the time been the primary selection for severe players, gaming consoles have additionally grown their world consumer base immensely over the previous decade. Nonetheless, the optimistic momentum available in the market is fading, with revenues rising a lot slower than in earlier years.

In response to knowledge introduced by SportsLens.comthe worldwide console gaming trade is projected to be price $61bn by 2026, displaying a modest 1.6% development in three years.

Add-On Content material and Subscription Revenues to Leap by Over 20%, {Hardware}, and Software program Gross sales to Proceed Falling

The 12 months 2022 introduced fairly a shock for the console gaming section. After two years of spectacular gross sales figures and double-digit development charges, world console gaming revenues dropped by 14% year-over-year to $55bn, down from $64bn a 12 months earlier than that.

And whereas the market is stabilizing after the pandemic-fuelled development in 2020 and 2021, the IDG survey reveals three of the 5 market segments will proceed declining within the subsequent three years. In 2023, all the console gaming trade is predicted to gross $60bn in income, 9% greater than final 12 months, primarily as a result of development of subscription and add-on content material revenues. IDG expects console subscriptions to herald $10bn this 12 months, 25% greater than a 12 months in the past. Digital add-on content material revenues will see the identical two-digit development fee and leap from $12bn to $15bn. {Hardware} gross sales are projected to develop by 11% and hit $19bn this 12 months.

Then again, software program and digital full recreation segments will see an 11% decline, with revenues falling from $9bn to $8bn.

IDG expects add-on content material and subscription revenues to develop by greater than 20% within the following years and hit $19bn and $12bn by 2026. Console {hardware} gross sales are projected to drop by 10% to $17bn within the subsequent three years, whereas the annual software program gross sales will tumble by 25% and fall to $6bn.

Digital Add-On Content material to Grow to be the Largest Income Stream of the Console Gaming Trade

The worldwide decline in console {hardware} gross sales and the surging use of add-on content material will convey some vital modifications within the complete income share. {Hardware} gross sales will make up greater than 30% of worldwide console gaming trade income this 12 months. Digital add-on content material is the second-largest section, with a 25% share, whereas subscriptions comprise one other 16% of complete income.

Nonetheless, the IDG survey confirmed digital add-on content material will develop into the market`s largest income stream, bringing 31% of complete income by 2026. {Hardware} gross sales income share is predicted to drop to twenty-eight% within the subsequent three years.