Market (Overall)·Updated Mar 17, 2026 by Newzoo
Report · May 1, 2023
Published by Newzoo
This analysis examines the impact of downloadable content (DLC) on player engagement and revenue across the PC and console markets. Covering the period from April 2020 to April 2023, the study evaluates over 1,600 DLC releases across 37 major global markets. The findings demonstrate that DLC serves as a critical tool for extending game longevity and driving monetization, particularly within the live-service model. In 2022, DLC sales accounted for 13% of total PC revenue and 7% of console revenue in the United States, highlighting a stronger reliance on add-on content among PC audiences. The research indicates that DLC launches provide a significant boost to player activity, with an average increase of 11% in Monthly Active Users (MAU) during the launch month. Medium-sized games, defined as those with 250,000 to 2 million MAU, saw the most substantial benefit, averaging a 22% growth rate. From a genre perspective, strategy games experienced the highest engagement spikes at 30.5%, followed by role-playing games at 21.1%. However, the data also reveals a trend of declining engagement in the months following a release, suggesting that players often churn or move to other titles once they have consumed the new content. Case studies of *The Sims 4* and *Dead Cells* illustrate diverse strategic approaches to content delivery. Electronic Arts successfully utilized a "free-to-play" funnel by releasing a free update immediately before a paid expansion, resulting in the most successful launch week in the franchise's recent history. Conversely, *Dead Cells* demonstrated the power of crossovers, with its *Return to Castlevania* DLC driving a 225% increase in MAU. Despite these spikes, the analysis notes that retention remains a challenge, as a significant majority of players do not return for subsequent updates, emphasizing the constant need for fresh content to maintain a stable player base.
# Table of Contents - Introduction & key takeaways 4 - Methodology & terminology 5 - Overview of monetization streams in US 6 - DLC’s impact on game engagement - Case studies 9 - About Newzoo
# Introductions & key takeaways Game developers and publishers have long been using DLC, or downloadable content, to enhance the gameplay experience and provide additional content for their players. DLC helps attract (new) players and keeps them engaged with their favorite game franchises. With the rise of live-service games, releasing a constant stream of new content has become increasingly important for developers and publishers alike. Successful DLC extends a game's longevity and allows game companies to generate additional revenue after the initial game release. In this report, we analyze over 1,600 DLC releases on PC and console from April 2020 to April 2023 and zoom in on how DLC boosts engagement for games across various sizes (by player base) and genres. The report also features case studies on The Sims 4 and Dead Cells to show how free-toplay and premium games utilize DLC. # Key takeaways: - 1. In 2022, DLC sales accounted for $13 \%$ of PC revenue and $7 \%$ of console revenue in the US. - 2. Overall, DLC boosted by $+ 1 1 \%$ across PC and console. - (250K-2M MAU in DLC-launch month) benefitted the most from expansion packs, with an average month-on-month $+ 2 2 \%$ - games experienced the highest MAU growth from DLC, followed by and on PC and console. - By releasing a free content update for The Sims 4 right before the paid "Growing Together" , EA achieved the most successful expansion pack launch week in the game’s history. - 6. On average, $30 \%$ of Dead Cells’ MAU in the DLC-release month were . # Authors & contributors – Sr. Market Analyst – Sr. Market Analyst – Sr. Market Analyst – Jr. Market Analyst – Sr. Writer & Editor – Lead Visual Designer
# Methodology & terminology # Methodology # Contextual events Newzoo’s Game Performance Monitor contains insight into the various contextual events surrounding games, such as DLC and updates, and what the effect of these events is on engagement and viewership metrics. All contextual events are added to our platform daily for ${ 2 , 0 0 0 + }$ games, with, on average, $5 , 0 0 0 +$ monthly events. F a I A title on PlayStation, Xbox, and PC. This DLC and items analysis contains 239 unique titles and 1,668 unique content releases from April 2020 to April 2023. # The analysis We analyzed the month-on-month growth of monthly active users (MAU) from the month before the release to the release month. Far al h The time for gamers to pick this up was too short, and the uptake in engagement usually came a couple of days after launch. We excluded DLC launches that launched simultaneously with the main game and DLC that was launched in November 2020 alongside the latest consoles. DLC and item packages only containing any form of in-game currencies were removed. Titles that are or have been included on a subscription service like ${ \sf P S } ^ { + }$ or Game Pass were omitted due to their different behavior and potential uptake. To guarantee the quality of our analysis, games with DLC having 50,000 or fewer MAU were excluded as those contained many outliers. Bas on the DLC launch month MAU, we divided the DLC launches into four buckets. mall means betwen and 250K MAU, medium between 250K and 2M, large between 2M and 5M, and extra large over 5M. # Terminology - : Players that opened the title at least once in the selected calendar month. - : Players that opened the title at least once in the selected calendar week. - : Players that opened the title at least once on the selected calendar day. - : Monthly unique players that played the title for the first time in the selected calendar month. - MAU - : Monthly unique players that played the title and have also played the title before the selected calendar month. - : Total unique players that have ever played a title until the selected calendar month. Note: This does not include players on PlayStation 3, Xbox 360, or anything prior. New and lifetime players are determined by platform (e.g., PlayStation), not by device (e.g., PlayStation 5).
# In-game spending accounted for nearly 50% of PC and console revenue in the US DLC generated almost twice as much revenue on PC than on console In 2022, revenue from premium transactions constituted over $50 \%$ of US spending on PC and console games. Across the three in-game revenue streams, spending on DLC represents the key difference between PC and console . PC payers spent as much on DLC in 2022 as console payers. As the top-performing titles continue to double down on new ways to monetize and leverage the games-as-a-service model, we expect non-premium revenue to grow for both PC and console in the future.
# DLC launches boosted player engagement, but this dropped in the period after the initial launch month # DLC performance index by game size (base: pre-DLC launch MAU) PC & console | 37 major markets | April 2020 – April 2023 Pre-launch DLC launch month Post-launch # +11% In 2022, DLC releases boosted MAU by an average of $1 1 \%$ across the 37 major PC and console markets. DLC also proved to be the most effective for . These games saw an average month-on-month MAU growth of $+ 2 2 \%$ . Interestingly, it is worth noting that there was a slight decline in MAU across all game sizes following the initial release month. This may indicate that players, after experiencing the fresh content, may have shifted their attention to other games or alternative forms of entertainment until new content was introduced.
# DLC launches boosted MAU for strategy games more than other genres Launching meaningful and frequent DLC updates keeps your audience engaged longer # Top 5 PC & console genres by DLC-driven MAU growth PC & console | 37 major markets | April 2020 – April 2023 | Average MoM growth On average, increased the MAU by an average of $+ 3 0 . 5 \%$ the month after the release. With many live-service games active in the market, holding on to your audience longer is vital. Launching meaningful additional content will attract This can eventually lead to further spending. Paradox Interactive is an example of a strategy publisher getting a lot out of its content releases. content updates, it has been able to engage its audience . The Europa Universalis IV expansion, Lions of the North, with the accompanying free content update, was among the best-performing DLCs by MAU increase within its genre. With an average increase of $+ 2 1 . 1 \%$ MAU month-onmonth, DLC releases in the role-playing genre ranked On average, attracting over $+ 2 0 \%$ more MAU per release shows the importance and success of DLCs within this genre. Two best-performing releases were Elder Scrolls Online: High Isle and Warframe’s The New War. With nearly 200 items in our sample, the genre DLC releases drew in $+ 1 1 . 0 \%$ more MAUs on . The Horizon Forbidden West: Burning Shores DLC saw the most considerable month-on-month growth. Critics and gamers alike responded positively to the update, which featured a new region and romantic storyline.
Downloadable content (DLC) serves as a critical driver for player engagement and long-term monetization in the PC and console gaming sectors. Analyzing over 1,600 content releases between April 2020 and April 2023 across 37 major markets, data indicates that DLC launches provide an average monthly active user (MAU) boost of 11%. This impact is most pronounced for medium-sized games with 250,000 to 2 million MAU, which experienced a 22% growth during launch months. While these releases successfully spike interest, engagement typically declines in the months following the initial release, highlighting the necessity of a consistent content pipeline to maintain player interest. Monetization trends in the United States further underscore the importance of post-launch content. In 2022, DLC accounted for 13% of PC revenue and 7% of console revenue, contributing to a landscape where in-game spending represents nearly half of total industry earnings. Strategy games emerged as the top-performing genre for DLC-driven growth, seeing a 30.5% average increase in MAU, followed by role-playing and adventure titles. These findings suggest that genres requiring deep mechanical updates or narrative expansions benefit most from the DLC model. Case studies of The Sims 4 and Dead Cells illustrate diverse strategic approaches to content delivery. Electronic Arts successfully utilized a "free-to-play" transition combined with a free base-game update to prime the audience for the "Growing Together" expansion, resulting in its most successful launch week since 2015. Conversely, Dead Cells demonstrated the power of high-profile collaborations, such as the Castlevania DLC, which drove a 225% MAU increase. However, the data also reveals a retention challenge, as a significant majority of players who engage with new DLC do not remain active in subsequent non-update months. This emphasizes that while DLC is a potent tool for re-acquisition and revenue, sustaining a permanent player base remains a complex hurdle for live-service titles.
The PC and console gaming market reached $93.5 billion in 2023, marking a 2.6% increase even as the industry enters a period of decelerating growth and intensifying competition. While total revenue remains substantial, average quarterly playtime has plummeted by 26% since 2021. This contraction is exacerbated by a heavy concentration of engagement within a small selection of "evergreen" titles and established platforms like Fortnite and Roblox. These games, which are over seven years old on average, now command more than half of all total playtime, creating a challenging environment for new market entrants. Market dominance is increasingly consolidated among a shrinking group of approximately 30 publishers who control 80% of all monthly active users. In 2023, games six years or older accounted for over 60% of total playtime. Although new releases captured 23% of the market's attention, the vast majority of that share was claimed by annual franchise sequels. This leaves non-annual, original titles to compete for a mere 8% of total playtime, illustrating a significant barrier to entry for innovative or independent intellectual properties in the current landscape. To navigate this stagnation, the industry is pivoting toward transmedia adaptations and cross-platform expansion. Film and television tie-ins have proven highly effective, driving an average 35% increase in monthly active users for associated titles. Furthermore, expanding established IPs to mobile and cloud platforms is essential for diversifying player demographics and reaching emerging markets in Latin America, Africa, and Southern Asia. Future success depends on capturing multiplayer-first audiences and leveraging cloud technology to bypass traditional hardware barriers, allowing publishers to tap into rapidly growing global player bases.
The global PC and console gaming market is projected to reach $92.7 billion by 2027, driven by a significant recovery in the console sector. While PC growth remains modest at a 2.6% CAGR, the console segment is expected to expand by 7.0%, fueled by the anticipated launch of the Nintendo Switch 2 and blockbuster releases such as Grand Theft Auto VI. Despite a revenue dip in 2024 due to a lighter premium release schedule, total playtime grew by 6%, signaling robust engagement even as market dynamics shift toward a "near zero-sum" competition for player attention. Player behavior is increasingly characterized by "calcification," where engagement is concentrated into a shrinking pool of established "forever games." Titles aged six years or older now command over 60% of playtime on PC and nearly half on consoles. This consolidation is most visible on PC, where just five legacy titles account for 30% of annual hours. While PlayStation has emerged as a growth leader with a 21% increase in playtime since 2021, the broader trend across all platforms shows players becoming more "unreachable," with a rising share of the audience engaging with only one to three games per year. To combat stagnation, publishers are increasingly leveraging "recursive nostalgia" by reintroducing classic maps and mechanics. While this strategy yielded massive engagement spikes for Fortnite, its effectiveness varies, often serving as a short-term boost rather than a long-term retention tool unless structured as a permanent gameplay mode. Furthermore, the discoverability crisis has intensified as annual releases on Steam approached 19,000 in 2024. With the impact of traditional seasonal sales declining fourfold since 2019, success now requires a shift toward targeted global events, external traffic generation, and product differentiation to break through a market dominated by AAA franchises and entrenched free-to-play titles.
This guide provides a framework for tracking game performance through the purchase funnel, emphasizing the importance of monitoring consumer sentiment from the pre-launch phase through the post-release lifecycle. The primary thesis is that success in the competitive PC and console gaming market requires a data-driven understanding of player awareness, purchase intent, and demographic behavior. By benchmarking these metrics against competitors, developers can optimize marketing spend, identify target audiences, and sustain long-term engagement. The analysis relies on data from the Game Health Tracker, which surveys over 3,000 PC and console players in the United States monthly. Key metrics include unaided awareness, which measures spontaneous brand recall, and aided awareness, which gauges maximum reach through prompted recognition. The findings demonstrate that awareness often fluctuates based on major industry events, such as trailer releases or gameplay reveals. Furthermore, the conversion rate—defined as the percentage of aided-aware players who express purchase intent—serves as a critical indicator of marketing effectiveness. The research highlights that demographic profiling and channel analysis are essential for resource allocation. For example, data shows that younger players may be more effectively reached through specific social media platforms like TikTok and Snapchat, whereas older or different segments might prioritize online stores or gaming subscriptions. Post-release, the guide notes that awareness naturally plateaus, necessitating tactical interventions such as price drops, DLC releases, or content updates to re-engage potential buyers. Ultimately, the document concludes that while initial hype is valuable, sustained success depends on continuously monitoring the purchase funnel and adapting strategies to meet the evolving motivations of both primary and secondary player audiences.