Industry Insights: Why the Gaming Market May Still Experience Growth

The recent release of Newzoo's PC and Console Gaming Report 2024 provides valuable insights into the trends and challenges facing the gaming industry. While the current news cycle is dominated by layoffs and studio closures, there are reasons to be optimistic about the future of the industry. According to Tom Wijman, Newzoo's lead analyst, the decline in playtime does not necessarily spell doom for new games. In fact, the data suggests that a larger share of the remaining playtime is being allocated to games that are over six years old, indicating a shift in the way gamers are engaging with content. This trend has significant implications for game developers and publishers, who must adapt their monetization models to succeed in a market where capturing players' time is becoming increasingly difficult. Wijman notes that the most successful games are those that effectively blur or build on established gameplay, have strong community support, and often fill gaps left by AAA studios. Examples of such games include Baldur's Gate 3, BattleBit Remastered, and Palworld, which have achieved success by offering unique experiences that resonate with gamers. The report also highlights the importance of a group of players who are always on the lookout for the next big thing, creating a phenomenon of 'overnight success' for certain titles. These players are highly active in their engagement with games media and are instrumental in recommending games to their friends, making them a crucial demographic for game developers to target. Despite the decline in playtime, the number of players is still growing, particularly in emerging markets where access to gaming-capable devices is increasing and new content is being released. Wijman believes that there are opportunities to be grasped in these territories if game developers can find ways to serve them better, with games that match their preferences and offer fresh stories and experiences. Overall, while the gaming industry faces significant challenges, there are reasons to be optimistic about its future growth and potential for success.