Global video games market projected to generate $189.3 billion in 2024

The global video game market is anticipated to experience a significant rebound this year, gaining momentum on the back of robust sales of Microsoft’s Xbox and Sony’s PlayStation 5 consoles, as indicated by research firm Newzoo.

After a marginal rise of approximately 0.6% in the previous year, the video game market is projected to grow by 2.8% to reach $189.3 billion in 2024. This follows a post-COVID decline that resulted in workforce reductions at several video game companies.

The gaming industry faced a 4.3% contraction in 2022, influenced by factors such as high interest rates, persistent inflation, and a shortage of major game titles, according to an earlier report from Newzoo. However, the market rebounded in 2023, driven by the launch of significant titles like Electronic Arts’ “Star Wars Jedi: Survivor” and the soccer game FC 24, along with Warner Bros Discovery’s Hogwarts Legacy.

Per the report, in 2023, the market reportedly generated approximately $184 billion, reflecting a modest 0.6% uptick from the previous year. Newzoo expressed optimism for the PC and console segments, anticipating a positive outlook, while noting that mobile gaming is poised for recovery following challenging conditions in the preceding years.

While the release schedule for 2024 may not match the packed lineup of highly anticipated hits in 2023, Newzoo predicts that continued growth will be propelled by live-service games and sales from the back catalog, contributing to the overall growth in console sales this year.

This outlook aligns with Sony’s expectations, with the company anticipating the sale of 25 million units of its PlayStation 5 in the 12 months ending March, thanks in part to a new, slimmer version of the device.

Live-service games, exemplified by Epic Games’ Fortnite, have played a pivotal role in driving gaming revenue in recent years, leveraging a free-to-play model and frequent content updates to attract and retain a large user base. However, Newzoo highlights signs of pressure on this model, indicating a shift in user behavior away from live-service games in favor of premium games.

Additionally, the growth of gaming subscription services, such as PlayStation Plus and Xbox Game Pass—where users pay a fee for access to a diverse range of titles—is expected to slow in the current year, according to Newzoo.

Looking ahead, Romain Bingler, Ubisoft Entertainment Market Strategy Manager, anticipates a year of continuity in 2024, with fewer major disruptions compared to previous years, according to the report. The video game industry remains dynamic, and the evolving landscape reflects changing player preferences and market dynamics.