How Handheld Gaming Has Become More Complex and More Lucrative

Key insights

5 takeaways

01
Omdia's new Games Handheld Database forecasts value, volume, and installed base for dedicated gaming handhelds through 2028.
02
Dedicated handheld gaming has seen a resurgence since the Nintendo Switch launched in 2017.
03
Handhelds like Sony's PlayStation Portal and Logitech G Cloud act as value-adds to existing platforms, extending their ecosystems for portable play.
04
Over one in three PS5 owners globally also own a Nintendo Switch, with this proportion being even higher in the US.
05
Nintendo's next-generation handheld console is expected to launch within the next 12 months.

Summary

The dedicated handheld gaming market is experiencing a significant resurgence, primarily driven by the Nintendo Switch's success in integrating console and portable gaming experiences. This analysis forecasts the market's trajectory through 2028, examining unit sales, market value, and installed base for dedicated gaming handhelds. The core thesis is that handhelds have evolved from platforms with exclusive hardware and software to devices that complement existing console, PC, and mobile gaming ecosystems, leveraging advanced processors and multiplatform engine support.

The market is projected to grow substantially, with unit sales increasing from 19.3 million in 2023 to 29.3 million by 2028. This expansion is fueled by the emergence of new categories, including PC gaming handhelds and streaming handhelds. However, the long-term viability of these newer segments will depend on clear strategic vision and effective control over their respective software ecosystems. The shift signifies a more complex and lucrative landscape for handheld gaming.

Beyond hardware trends, broader industry dynamics are influencing the market. The prevalence of early access DLC on platforms like Steam indicates evolving monetization strategies, with games featuring DLC and in-app purchases particularly benefiting from subscription services. Concurrently, developer anxiety regarding the potential impact of generative AI on game quality is a growing concern, alongside the influence of "unreasonable investor expectations" on overall market conditions.