The global PC and console gaming market is projected to grow at a slower pace through 2026, lagging behind pre-pandemic levels as gamers spend less time playing, according to a recent report by research firm Newzoo.
From the end of 2023 to 2026, the market is expected to expand by 2.7%, a significant drop from the 7.2% growth rate witnessed between 2015 and 2021. This deceleration is attributed to a decline in average playtime, which fell by 26% from 2021 to 2023.
Shift in Gaming Habits
The reduction in playtime highlights a shifting trend in gaming habits worldwide. “Slower player growth rates will impact the industry’s capacity to ‘expand the pie’ via net organic growth,” Newzoo noted in its report. The trend is anticipated to persist throughout the year, exacerbated by a weaker lineup of new game releases, with playtime dropping approximately 10% in January alone.
Industry Giants Adjust Strategies
Major players in the industry are responding to these changes. Japan’s Sony Group announced in February that it does not expect to launch any new major franchise titles, such as “God of War” or “Marvel’s Spider-Man,” in the upcoming fiscal year. Additionally, the company has reduced its full-year sales forecast for PlayStation 5 consoles due to lower-than-expected sales during the holiday season.
Other industry leaders like Tencent Holdings’ Riot Games and Electronic Arts have initiated layoffs, cutting hundreds of jobs and scaling back operations to adjust to the shifting market dynamics.
Consolidation and Market Concentration
The gaming industry is also experiencing a consolidation trend, with fewer publishers and a select group of games capturing a larger share of player engagement. In each month of 2023, between 28 and 34 publishers accounted for 80% of monthly active users—a number that has been declining since 2021.
Moreover, five popular titles—including Epic Games’ “Fortnite,” “Roblox,” “League of Legends,” “Minecraft,” and “Grand Theft Auto V”—captured 27% of all playtime last year. Games like “Fortnite” and “Roblox” have thrived due to their games-as-a-platform model, allowing players and creators to continuously add content. This approach helps these platforms “stay ahead of the content treadmill,” according to Newzoo.
Looking Ahead
The industry’s outlook suggests that companies may need to innovate and adapt to the changing preferences of gamers. With players logging fewer hours, the focus could shift toward enhancing player engagement and exploring new business models to sustain growth in a competitive market.
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PC, console growth to lag pre-pandemic levels as gamers play less
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