In 2024, the gaming market is projected to make a recovery and experience growth, although it will be a challenging year for gaming companies. The growth of multi-game subscriptions may slow down, leading companies to shift their focus towards developing premium games. Additionally, mobile developers are transitioning towards PC gaming, and the launch of a new Nintendo console is expected to coincide with the release of a new 3D Mario game.Market trends report from data and research firm Newzoo indicates that 91% of games industry leaders believe that the global market revenue will increase in 2024, while 9% disagree with this outlook.
Market Recovery & Growth
Newzoo’s data suggests that the PC and console gaming market is expected to rebound and grow in 2024, primarily driven by the expanding install base of the Xbox Series and PlayStation 5.
Despite expectations of less impressive game releases, growth in 2024 will be fueled by live-service games and back catalog sales. There is a split opinion on whether the number of released games and game development budgets will increase this year.
Reduced Risks & Multi-Game Subscriptions
Gaming companies are expected to take fewer risks in 2024, with a focus on established IPs and smaller AAA titles. The rise of live-service games, nostalgia, and the push for generative AI in game production are becoming key drivers in the industry. Multi-game subscriptions may face lower forecasted growth, as companies grapple with the active nature of gaming.
Focus on Premium Titles & Industry Shifts
While the live-service games model continues to dominate for revenue, companies are recognizing that the space is becoming saturated, leading to a shift back towards the premium model for better financial success. Furthermore, developers are reconsidering their focus on mobile gaming and are increasingly exploring opportunities in PC and console gaming.
New Console Launch & Emerging Trends
Newzoo predicts the launch of a new Nintendo console in 2024, accompanied by a highly-anticipated 3D Mario game release. Additionally, Xbox plans to roll out a mobile app store on Android and later on iOS, showcasing the industry’s continual efforts to adapt to evolving market dynamics.
AI Integration & Game Releases
Generative AI tools are being embraced by studios to streamline game development, although there are limitations to their widespread adoption. Additionally, there is a wave of open-world Soulslike games expected to emerge in 2024, influenced by the success of previous titles.
Overall, the industry continues to evolve in response to shifting consumer behaviors and market conditions, setting the stage for an eventful year ahead. For further insights, you can access the full ‘Games market trends to watch in 2024’ report here.
