Gaming Revenue Sees 2% Decline to $80.2 Billion in 2024, Predicted to Rise

According to a recent report by Newzoo, global consumer spending on PC and console gaming experienced a 2% decline to $80.2 billion in 2024, but is anticipated to increase to $85.2 billion in 2025. The market research firm predicts that the overall market will expand to $92.7 billion by 2027, primarily driven by the console segment. In 2024, console gaming accounted for the largest market share at $42.8 billion, with premium titles generating $19.9 billion, representing a 14% year-over-year decrease. Free-to-play games constituted 32% of console revenue, totaling $13.9 billion, and saw a 4.5% year-over-year increase. Subscription-based services held a 16% share, amounting to $6.9 billion, marking a 14.1% year-over-year growth. On the PC side, the market generated $37.3 billion, with free-to-play games making up 58% of total PC revenue at $24 billion, up 1.4% year-over-year. Premium games accounted for 28% of PC revenue, totaling $10.7 billion, and declined by 2.6% year-over-year. Newzoo forecasts that console growth will resume in 2025, driven by key pay-to-play titles, including the highly anticipated Grand Theft Auto 6 and the launch of the Nintendo Switch 2. Playtime increased by 6% year-over-year, with the fourth quarter of 2024 setting a record for the highest quarterly playtime. This growth was largely driven by pay-to-play games and Call of Duty: Black Ops 6. New releases comprised 12% of total playtime in 2024, with Fortnite remaining the most played game, accounting for 9.3% of total playtime in 2024, compared to 9.1% in 2023. Newzoo notes that while playtime hours are growing, they are concentrated in AAA titles and can be cannibalistic, with the battle for audience hours being highly competitive.