Console Market Sees Decline in 2022, Reaching $56.2 Billion

According to a recent report by Ampere Analysis, the global console market experienced a downturn in 2022, with total spending amounting to $56.2 billion. This represents a 7.8% decline from the previous year. Console game revenue also saw a decrease, dropping 9.3% year-on-year to $32.6 billion. However, spending on game services increased by 5.6% to $7.8 billion. Sony dominated the market, capturing 45% of the total spend on console games, hardware, and services. The company's success can be attributed to the sales of the relatively expensive PlayStation 5 hardware. The report highlights that while the number of users subscribing to console subscription services decreased, spending on these services rose due to the multi-tiered strategies employed by Microsoft, Sony, and Nintendo. Console game sales fell 7% compared to 2021, with in-game monetization and downloadable content spending down almost 15%. This decline is attributed to a return to more normal post-pandemic consumer behavior and the current macroeconomic climate. Looking ahead, Ampere Analysis predicts that the sales gap between the PlayStation 5 and Xbox Series X|S consoles will widen in the first half of 2023, and new Nintendo systems are expected to launch towards the end of 2024.