Last year we saw the PC and console games market face its first downturn in over a decade. Compared to 2021, overall playtime dropped by almost 15%, and spending decreased year-on-year.
However, these trends don’t spell doom for the gaming industry. Instead, we see a correction toward pre-COVID engagement levels, and we’re confident that the number of players will increase, as will the average spending.
To track the latest and most impactful developments in the PC and console markets, we created the PC & Console Gaming Report, a brand-new deep dive into this massive section of the gaming world. This report provides a holistic view of what to expect in 2023 and beyond.
Read on for essential highlights from the report, or download the full version here. Let’s get into the latest PC and console insights.
PC and console markets saw a -2.2% decline year on year, but the market remains stable
In 2022, the combined revenue from the PC and console market reached $92.3 billion, a decline of -2.2% year on year. Average playtime also took a hit, with a -23% drop across Steam, Xbox, and PlayStation from 2021 and 2022.
Putting this into perspective, the pandemic energized the PC and console market, so it’s no surprise that sales dropped as parts of the world reopened and live entertainment options returned. Many companies also delayed their highly anticipated titles from 2022 to 2023 and later, factoring into the loss of playtime and revenue.
Despite a -2.2% dip, the market is in a healthy state and is on track to grow over the next several years.
While the market may be cooling down, overall performance still outshines our previous forecasts. This year, the market will correct to pre-pandemic levels. In many segments, we may even see significant growth. Games that should have dropped in 2022 will make a splash this year, boosting engagement across all major platforms.
On top of that, more AAA and AA publishers will pivot their main franchises to service-based models. Larger publishers will likely invest more in proven franchises.
Live-service business models, better access to hardware, and hybrid monetization strategies will ensure that developing solely for PC or console platforms will remain viable.
2022 was a corrective year for the games market, following an intense growth period during the global pandemic
Evolving business models brought in new players and reinvigorated existing audiences
The battle for attention in the PC and console market is heating up. We now have more avenues than ever before to engage with players, including the metaverse, transmedia, cross-platform, remasters, and a whole lot more.
This increasingly complex market landscape has inspired developers and publishers to try new business models to ensure players stay connected to an IP, platform, or company. And there are tons of players out there dedicating time and money to games.
Last year, people spent over 100 billion hours playing on PCs and/or consoles, and the average amount that players spent in the US reached $200.
Of course, building and remaining profitable is not necessarily becoming easier. Companies will need to exercise creativity to conquer their corner of the PC and console market. Subscription services, remasters and remakes, IP licensing, and microtransactions will be viable options for boosting profits and mitigating risk.
For instance, let’s look at the top releases of 2022. The biggest winners in terms of initial launch month revenue were those that mixed premium pricing and microtransactions like NBA 2K23. Also, in-game spending accounted for nearly 50% of PC and console revenue in the US, showing that top-performing titles are doubling down on new ways to monetize and leverage the games-as-a-service model.
2022 saw an even split between premium and in-game revenue for PC and console markets
2/3 of gamers played a PC or console in the last six months – How the PC and console gaming audience is expanding and diversifying
This past year, the PC and console player base became more diverse in varying ways. PC and console gaming is attracting a more balanced audience in terms of gender and age, and players are becoming more varied in what drives them to games. Women gamers represented 40% of the total PC and console player base in 2022, a significant step in a traditionally more male-driven industry.
Cross-platform play also became more prominent and continues to expand. Seven in ten PC and/or console players played on more than one console in the past six months, with nearly a quarter of all surveyed players using every major platform. Significantly, cross-play often signaled an increase in playtime and spending.
PC and/or console players who engaged with three platforms spent more time gaming than players who opted for one or two platforms.
More than ever, gaming is becoming a platform for connecting and socializing with people. Social features within games are taking a more prominent role for PC and/or console players. In the past 12 months, half of PC and/or console players socialized through or visited online gaming communities and social media groups connected to games, with younger generations especially leading this charge.
Grow in the PC and console market with Newzoo
The PC and console market is enormous and swiftly evolving, so having in-depth and timely insights on games, the market, and the players that power this industry can be critical. We expect 2023 will be a year of strong growth for the market, with the console side being especially powerful as more people purchase the current generations of PlayStation and Xbox and snag much-awaited, delayed games.
To get the most comprehensive view of the PC and console gaming market to date, read the full, free version of our new report.
Newzoo’s unique ability to track the PC and console gaming landscape and provide critical data, insights, and trends is essential for industry players navigating these tumultuous times. Our product portfolio gives us a 360-degree view of games, gamers, and the games market so we can see what’s happening now and what to expect in an industry that never stops evolving.
Contact us at questions@newzoo.com or start exploring the Game Performance Monitor, custom research, and consulting services to unlock limitless data and insights on the PC and console markets and more.
