Reuters: PC, console growth to lag pre-pandemic levels as gamers clock in fewer hrs. 60% playtime In 2023 went to games released 6 years ago or more.

Gamernyc78

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April 2 (Reuters) - Personal computing and console gaming revenue growth is expected to remain below pre-pandemic levels through 2026 as gamers record fewer hours of playtime, according to research firm Newzoo.

The market is expected to grow 2.7% from 2023-end to 2026, below the 7.2% growth rate from 2015 to 2021, according to the report.

Gamers have been recording fewer hours of play, with the average quarterly playtime falling 26% from 2021 to 2023.
The trend is expected to continue this year due to weaker gaming release schedules, with playtime falling around 10% in January.

"Slower player growth rates will impact the industry's capacity to 'expand the pie' via net organic growth," Newzoo said.

Japan's Sony Group (6758.T), opens new tab had said in February it does not expect to release any new major franchise titles such as "God of War" and "Marvel's Spider-Man" in the coming fiscal year.
The company also cut full-year sales forecast for its PlayStation 5 consoles due to weaker-than-expected sales during the holiday season.

Industry giants such as Sony, Tencent Holdings' Riot Games and Electronic Arts (EA.O), opens new tab have also laid off hundreds of employees this year and scaled back operations.

Gaming industry consolidation is another trend in focus with fewer publishers and a small group of games scooping up a large share of player engagement.
In each month of 2023, between 28 and 34 publishers commanded 80% of monthly active users, a publisher count which has been falling since 2021, the report said.

At the same time, five popular titles like Epic Games' "Fortnite", "Roblox", "League of Legends", "Minecraft" and "Grand Theft Auto V" had captured 27% of all playtime last year.

Fortnite and Roblox, in particular, have been thriving due to their games-as-a-platform model, which allows players and creators to add content to the game, allowing the platforms to "stay ahead of the content treadmill", according to Newzoo.

Also...


NEWS

60 Percent Of Playtime In 2023 Went To 6-Year-Old Or Older Games, New Data Shows​

A report shows that while the industry is growing, its biggest competition is Fortnite, GTA, Call of Duty, and Roblox


An image shows Fortnite characters sliding through a neon city.

Image: Epic Games
A newly released game industry report by market researcher Newzoo shows that while the PC and console market grew 2.6 percent in 2023, overall playtime decreased as gamers spent more and more time in a smaller list of old games like Fortnite and League of Legends.

On April 2, Newzoo released its second annual game industry report, including a ton of data and information on what people were playing and spending money on during 2023. According to Newzoo’s data, the PC and console game market grew and reached $93.5 billion in revenue in 2023. That might seem like good news, but drilling down into the data, it becomes clear that it’s only good news for a small number of publishers and developers.

Newzoo’s data shows that the top 10 games on each platform (ranked by their average number of monthly active users, or MAU) are filled with old, established titles. Fortnite took the crown on all platforms, including Switch and PC. The rest of the lists included titles that won’t surprise you, like Grand Theft Auto V, Counter-Strike 2, Roblox, Minecraft, Rocket League, Apex Legends, Fall Guys, Valorant, and Call of Duty. Across Xbox and Playstation consoles, only one dedicated single-player game cracked the top ten: Starfield.

To further prove that gamers are primarily focused on older games, Newzoo’s data shows that just 66 titles accounted for 80 percent of all playtime in 2023. And 60 percent of that playtime was spent in games that are six years old or older. In fact, in 2023, five old games—Fortnite, Roblox, League of Legends, Minecraft, and GTA V—accounted for 27% of all playtime in the year.

It gets worse. Of the 23 percent of playtime spent in 2023 on new games—defined as 2 years or younger—more than half was spent in big annual sequels like the latest Madden or NBA game. Only 8 percent of video game playtime was spent on new, non-annual titles like Diablo IV or Baldur’s Gate III


While Newzoo’s report does point out that you can still be successful in this environment, the reality is that gamers are spending less and less time in new games and more and more time in already-established franchises and live-service titles, making it harder for publishers and developers to find an audience. That’s because unlike in the decades before, you aren’t just competing with whatever hot new game is on the shelves, but instead are fighting giants like Fortnite and Roblox, completely free games with endless amounts of content created by their users.

“It will be increasingly challenging to grow a game’s playerbase,” said Newzoo in the report, “particularly in our current landscape, where evergreen titles and robust content pipelines reign supreme.” In other words, good luck if you aren’t making a big sequel, remake, or annual entry in some popular series.
 
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Bryank75

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Newzoo sell PC parts and I find it very strategic of them to bundle PC & consoles together in this instance and then try to focus the blame for any slowdown on PlayStation...

PC's were being bought by businesses for home use at a massive rate and now that has collapsed. The stats will show that PC is slowing down...

But I believe PlayStation is very healthy and just needs price cuts on the base unit to continue outpacing PS4 when time aligned.

Xbox is dying and PC is hurting.... but there's no justification for Newzoo to scapegoat PS5... But again, as they are a PC based company...it serves them.
 

Luffy123

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Newzoo sell PC parts and I find it very strategic of them to bundle PC & consoles together in this instance and then try to focus the blame for any slowdown on PlayStation...

PC's were being bought by businesses for home use at a massive rate and now that has collapsed. The stats will show that PC is slowing down...

But I believe PlayStation is very healthy and just needs price cuts on the base unit to continue outpacing PS4 when time aligned.

Xbox is dying and PC is hurting.... but there's no justification for Newzoo to scapegoat PS5... But again, as they are a PC based company...it serves them.

Yep. PS5 users are the only people actively buying AAA games in this industry anymore
 
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Gamernyc78

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Newzoo sell PC parts and I find it very strategic of them to bundle PC & consoles together in this instance and then try to focus the blame for any slowdown on PlayStation...

PC's were being bought by businesses for home use at a massive rate and now that has collapsed. The stats will show that PC is slowing down...

But I believe PlayStation is very healthy and just needs price cuts on the base unit to continue outpacing PS4 when time aligned.

Xbox is dying and PC is hurting.... but there's no justification for Newzoo to scapegoat PS5... But again, as they are a PC based company...it serves them.
Really didn't know who Newzoo was so it's gd to know.
 
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Yurinka

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The article says: "In each month of 2023, between 28 and 34 publishers commanded 80% of monthly active users, a publisher count which has been falling since 2021"

2-3 dozen companies have 80% of the gaming MAU. As I remember, in revenue the split was similar.

It may seem it's concentrated in a few hands, but outside gaming in other markets there are a few companies, only maybe maximum 3 or 4 who get such lion share. Meaning, there's a lot of room for way more consolidation without almost changing the market.

From Newzoo's own stats, PC is the one that is shrinking. Forget lagging pre-pandemic growth.




The graph in the right is a legit Newzoo graph. The one in the left is from TweakTown, who several times posted wrong or fake numbers.

In this case, we can see that they mention Newzoo as source but their 2023 numbers don't match with the legit Newzoo 2023 graph shown in that same tweet. Newzoo always releases estimates for the current year multiple times across the year, giving the final number in January. Maybe these guys didn't choose the final ones for their graph.
 
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Gods&Monsters

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The article only focuses on Sony, as if they are the only ones that need to release games and sell consoles. The rest can go on permanent vacation and they don't get blamed for anything (which is what Fat Gabe does).
 
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NEWS

60 Percent Of Playtime In 2023 Went To 6-Year-Old Or Older Games, New Data Shows​

A report shows that while the industry is growing, its biggest competition is Fortnite, GTA, Call of Duty, and Roblox


An image shows Fortnite characters sliding through a neon city.

Image: Epic Games
A newly released game industry report by market researcher Newzoo shows that while the PC and console market grew 2.6 percent in 2023, overall playtime decreased as gamers spent more and more time in a smaller list of old games like Fortnite and League of Legends.

On April 2, Newzoo released its second annual game industry report, including a ton of data and information on what people were playing and spending money on during 2023. According to Newzoo’s data, the PC and console game market grew and reached $93.5 billion in revenue in 2023. That might seem like good news, but drilling down into the data, it becomes clear that it’s only good news for a small number of publishers and developers.

Newzoo’s data shows that the top 10 games on each platform (ranked by their average number of monthly active users, or MAU) are filled with old, established titles. Fortnite took the crown on all platforms, including Switch and PC. The rest of the lists included titles that won’t surprise you, like Grand Theft Auto V, Counter-Strike 2, Roblox, Minecraft, Rocket League, Apex Legends, Fall Guys, Valorant, and Call of Duty. Across Xbox and Playstation consoles, only one dedicated single-player game cracked the top ten: Starfield.

To further prove that gamers are primarily focused on older games, Newzoo’s data shows that just 66 titles accounted for 80 percent of all playtime in 2023. And 60 percent of that playtime was spent in games that are six years old or older. In fact, in 2023, five old games—Fortnite, Roblox, League of Legends, Minecraft, and GTA V—accounted for 27% of all playtime in the year.

It gets worse. Of the 23 percent of playtime spent in 2023 on new games—defined as 2 years or younger—more than half was spent in big annual sequels like the latest Madden or NBA game. Only 8 percent of video game playtime was spent on new, non-annual titles like Diablo IV or Baldur’s Gate III


While Newzoo’s report does point out that you can still be successful in this environment, the reality is that gamers are spending less and less time in new games and more and more time in already-established franchises and live-service titles, making it harder for publishers and developers to find an audience. That’s because unlike in the decades before, you aren’t just competing with whatever hot new game is on the shelves, but instead are fighting giants like Fortnite and Roblox, completely free games with endless amounts of content created by their users.

“It will be increasingly challenging to grow a game’s playerbase,” said Newzoo in the report, “particularly in our current landscape, where evergreen titles and robust content pipelines reign supreme.” In other words, good luck if you aren’t making a big sequel, remake, or annual entry in some popular series.
 

Cool hand luke

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but instead are fighting giants like Fortnite and Roblox, completely free games with endless amounts of content created by their users.
I haven't played or seen videos of Roblox, but the characterisation of Fortnite as completely free is completely wrong. How would they sustain this endless content without microtransactions/battle passes?
 
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Gamernyc78

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I haven't played or seen videos of Roblox, but the characterisation of Fortnite as completely free is completely wrong. How would they sustain this endless content without microtransactions/battle passes?
Yes but for them it's free because in order to play you don't have to pay anything.