Report

Games Market Trends 2024

1 January 202427 pages4,101 words

Summary

This analysis examines the 2024 global games market, forecasting a period of recovery and strategic restructuring following the post-pandemic market correction. The primary thesis suggests that while the industry is returning to growth, it faces a "lean year" characterized by cautious investment, workforce reductions, and a pivot away from the oversaturated live-service model toward premium, finite gaming experiences. Key findings indicate that the market began recovering in 2023 and is projected to maintain a positive Compound Annual Growth Rate (CAGR) of +1.3% through 2026. Despite this growth, the report highlights a significant shift in business strategies. Developers are increasingly favoring established Intellectual Property (IP) and sequels to mitigate risk. Furthermore, the "gold rush" for live-service titles is cooling as 19 games currently command 60% of total playtime, leading companies to return to premium releases. Other major trends include the slowing growth of multi-game subscriptions, the expansion of mobile developers into the PC space to combat rising user acquisition costs, and the anticipated launch of next-generation Nintendo hardware. The scope of this research is global, covering mobile, PC, and console segments with revenue and engagement forecasting extending from 2021 through 2026. The methodology combines internal data analysis from the Newzoo platform with a qualitative survey of gaming executives and experts from organizations such as Ubisoft, Savvy Games Group, and Iron Galaxy Studios. Technological and platform shifts also define the 2024 outlook. Generative AI is expected to improve production efficiencies and NPC depth, though it is not predicted to impact game production at scale within the current year. Additionally, the report anticipates increased platform fluidity, specifically noting Microsoft’s intent to launch an Xbox mobile store on Android to challenge existing app store duopolies.

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Games Market Trends to Watch in 2024

The global games market in 2024 is characterized by a period of stabilization and strategic restructuring following the post-pandemic correction. While the industry saw a revenue decline in 2022, recovery began in 2023 and is expected to continue through 2024, driven largely by the expanding install base of current-generation consoles like the PlayStation 5 and Xbox Series X|S. Despite this growth, the year is defined as a lean period for many companies as they navigate high interest rates, reduced investment capital, and a highly competitive landscape where a small number of titles dominate the majority of player engagement. Key findings indicate a significant shift in business models and platform strategies. While live-service games remain the primary revenue drivers, the market is experiencing oversaturation, leading many developers to return to premium, finite gaming experiences. Growth in multi-game subscription services is expected to slow as they face competition from free-to-play social platforms like Fortnite and Roblox. Additionally, mobile developers are increasingly diversifying by bringing their titles to PC to combat rising user acquisition costs and stricter privacy regulations. Major hardware and distribution shifts are also anticipated, including the launch of a new Nintendo console and the introduction of an Xbox mobile store on Android. The scope of this analysis covers global market trends across PC, console, and mobile segments, with revenue forecasting extending through 2026. The methodology combines internal market data and analyst perspectives with a survey of gaming executives and industry experts from companies such as Ubisoft, Iron Galaxy Studios, and Savvy Games Group. Emerging technologies like generative AI are identified as tools for increasing production efficiency, though they are not expected to transform game development at scale within the immediate calendar year. Overall, the industry is moving toward risk-reduction strategies, focusing on established intellectual properties and cross-platform accessibility to maintain stability.

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