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# The PC and console market in 2023 What’s happening in the games market now and what’s to come Last year we saw the games market face its first downturn in over a decade. As most of the world stepped outside after several years of being shuttered, with offices and schools welcoming people back and more live entertainment returning, PC and console playtime decreased. Compared to 2021, overall playtime dropped by almost $15 \%$ , and there was a decrease in spending year-on-year. As market analysts, we view the market holistically and see that these trends constitute a correction towards pre-COVID engagement. While there was a drop in 2022, we’re confident we’ll see an upward trend in the number of players and how much they spend, especially given that we’re above pre-COVID engagement levels. The battle for attention is heating up, elevating ambitions to expand the definition of engagement. We now have the metaverse, transmedia, cross-platform, remasters, and more, all of which ensure players stay connected to an IP, company, and/or platform. Also, the struggle to build and remain profitable amidst rising development costs and higher risk has helped grow unique models. Subscription services, remasters and remakes, IP licensing, and microtransactions boost profits and mitigate risks. More than ever, Newzoo’s unique ability to track the PC and console gaming landscape and provide critical data, insights, and trends is becoming essential for industry players looking to navigate these tumultuous times. Our product portfolio gives us a 360-degree view of games, gamers, and the games market so we can see what’s happening now and what to expect in an industry that never stops evolving.

# Highlights from the 2023 report New and updated business models, a packed release schedule, and a more diverse player base will stabilize the PC and console market and create growth opportunities PC and console markets generated $\$ 92.3$ billion in 2022, a decline of $= 2 . 2 \%$ year on year. The markets may be cooling down after the pandemic, but overall performance still outshines our previous forecasts. Developing solely for PC or console will still be viable in the years to come, driven by live services, better access to hardware, and hybrid monetization. Average playtime dropped by $23 \%$ across Steam, Xbox, and PlayStation from 2021 to 2022. This isn’t a new low, though, it’s a re-correction to similar numbers to what we saw pre-pandemic. On the development side, many companies delayed their launches from 2022 to at least 2023, contributing to last year’s playtime dip, but a new cohort of anticipated titles may level out playtime engagement across major platforms. 2/3 of gamers played on a PC or console in the last six months. The market has become more equitable, with women gamers now representing $40 \%$ of the total PC & console player base. Motivations to play PC and console games have also diversified significantly, as players give more varying reasons to play across our gamer segmentations.