Updated Mar 17, 2026 by Newzoo
Report · February 12, 2026
Published by Newzoo
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.
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Contents The PC and console market outlook 10 Playtime analysis 19 How many games do we really play? 43 Special topic: Recursive nostalgia 68 Special topic: Steam visibility 80 What's Next? 90
Meet the authors of this report Emmanuel Rosier Ben Porter Spyros Georgiou Director of Market Intelligence Director of Consulting Design Lead Michael Wagner Tyler Long Siyi Zhang Senior Market Analyst Director of Product Design Intern Brett Hunt Horatiu Mitu Lynn van den Hoven Market Analyst Director of Marketing Marketing Specialist Michiel Buijsman Principal Market Analyst
The state of PC and console gaming in 2025 Welcome to the third edition of Newzoo’s annual PC and console report. I In a rapidly evolving market filled with speculation and opinion, it’s essential to cut through the noise with clear, data-driven insights. At Newzoo, we leverage rigorous analysis and industry-leading data science to deliver the most comprehensive and accurate snapshot of the PC and console gaming landscape, empowering you to navigate challenges and capture emerging opportunities. In this report, we first examine the market's performance in 2024. We then examine how upcoming game releases, changing consumer behaviors, and monetization strategies will shape the market toward 2027. Building on last year's groundbreaking Playtime Analysis, we present an updated, in-depth look at how player engagement has evolved across PC, PlayStation, and Xbox since the pandemic. We're particularly excited to introduce our new section, "How Many Games Do We Really Play?", which investigates the exact number of games players actively engage with and their willingness to invest at different price points across platforms. Additionally, our Special Focus Topics offer deeper insights into key market dynamics: ü Recursive Nostalgia: Explore how major live-service games leverage their histories to drive ongoing player engagement through nostalgic experiences. ü Steam Visibility: Gain actionable insights into discoverability, identifying best practices for standing out in Steam’s increasingly competitive marketplace.
Explore how major live-service games leverage their histories to drive ongoing player engagement through nostalgic experiences. ü Steam Visibility: Gain actionable insights into discoverability, identifying best practices for standing out in Steam’s increasingly competitive marketplace. By the end of this report, you'll be equipped with actionable insights into monetization strategies, player engagement trends, platform-specific nuances, and effective discoverability tactics. This free resource draws from the Newzoo Platform, focusing on the Game Performance Monitor, with supporting data and insights from all our tools. We also delve into our Games Market Reports and Forecasts for valuable market context. We hope you enjoy reading it as much as we loved writing it. Thanks for tuning in. Emmanuel Rosier Director of Market Intelligence
Key takeaways 1 PC 2 Play 3 Hov PC & console Playtime analysis How many games market outlook do we really play? PC popu ü Overall play Number of ü PC popularity remains stable with muted Overall playtime hours are growing but ü Number of games played is down on Xbox and revenue growth, while console revenue growth concentrated in AAA and at times cannibalistic; Steam from COVID peak will be driven by GTA VI and Nintendo Switch 2 the battle for audience hours is fierce and near Play habits zero sum ü Play habits are calcifying into fewer games, ü All business models are viable, but not at the reducing addressable market for new launches same scale on every platform ü PC skews heavily towards older, F2P titles while console is slate dependent ü F2P drives significant interest, but players are ü Barring radical outliers, titles’ growt
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 PC and console gaming market entered a corrective phase in 2022, generating $92.3 billion in revenue despite a 2.2% year-on-year decline and a 15% drop in playtime. This contraction represents a stabilization toward pre-pandemic levels rather than a long-term downturn, as the market still outperformed pre-COVID forecasts by more than $32 billion. While total engagement fell, particularly among hardcore players who reduced playtime by 37%, the industry maintains a massive global audience of 1.1 billion PC and 611 million console players. This foundation is increasingly defined by a shift toward recurring revenue, with microtransactions and downloadable content now accounting for nearly half of all consumer spending. Market dynamics are currently shaped by the dominance of established live-service titles and the successful integration of transmedia strategies. Games like Fortnite and Roblox continue to lead in monthly active users, while media adaptations have proven effective at revitalizing older intellectual properties. The player base has also become more diverse and socially driven, with women comprising 40% of the audience and 72% of users engaging across multiple platforms. Beyond traditional gameplay, three-quarters of players participate in social activities or content creation, indicating that gaming has evolved into a broader lifestyle ecosystem where multi-platform "core gamers" represent the highest-value consumer segment. The outlook for 2023 and beyond suggests a robust recovery fueled by stabilized hardware supply chains and a dense schedule of highly anticipated blockbuster releases. While PC revenue is expected to grow steadily, console gaming is positioned as the primary driver of market expansion over the next three years. High consumer awareness for upcoming major titles, combined with the continued pivot toward hybrid monetization and cross-media expansion, points toward a resilient industry capable of sustaining growth well above historical norms. This trajectory reinforces the transition of the sector from a product-based model to a service-oriented landscape defined by long-term engagement and social connectivity.
Alinea Analytics provides a comprehensive review of the PC and console gaming market for 2025, offering data-driven insights into player behavior, revenue trends, and regional growth. The analysis highlights a year defined by the continued rise of indie and "Triple-I" titles, which accounted for over 25% of Steam’s revenue. Major success stories like RimWorld’s Odyssey DLC, which earned $10 million to date, and the rapid development of viral hits like RV There Yet? underscore a market where high return on investment is increasingly decoupled from massive studio sizes. Geographically, the report identifies China as a dominant force, ranking as the top market for Steam and the fifth for PlayStation. This surge is attributed to the momentum of titles like Black Myth: Wukong, with Chinese players making up a significant percentage of the audience for games such as Escape from Duckov and Monster Hunter Wilds. In Europe, the Swedish development scene saw a massive year, capturing significant market share through titles like R.E.P.O. and Split Fiction. Technical and genre trends show Unreal Engine maintaining its position as the industry standard for AA and AAA development, while Unity remains the backbone for indie successes. Co-op games emerged as a primary revenue driver, representing 11 of the top 20 highest-grossing titles. While adventure and RPGs remain popular, "cute" and "realistic" tags saw the highest year-over-year revenue growth. The data also notes a shift in marketing dynamics: while wishlist campaigns are now standard—requiring nearly 200,000 wishlists to break the top 200 most-anticipated list—conversion rates have declined, placing greater emphasis on post-launch player reception and "shadow drops" for viral success.
The 2025 PC and console landscape is dominated by Steam, which recorded 450 million downloads and is projected to achieve a record $12 billion in premium revenue, reflecting a 15 percent year‑to‑date increase. PlayStation and Xbox follow with 376 million and 283 million downloads respectively, underscoring Steam’s clear lead in both user acquisition and monetisation. Across the combined market, action titles command the highest demand at 262 million downloads, while shooters and role‑playing games attract 189 million and 131 million downloads, indicating a strong preference for high‑intensity, narrative‑driven experiences among gamers. Premium revenue accounts for the majority of earnings on the leading platforms, with Steam generating 79 percent of its income from premium sales and PlayStation reaching 83 percent, highlighting the continued viability of upfront purchase models despite the growth of free‑to‑play alternatives. The data suggest that while free‑to‑play titles remain a significant segment, the premium‑heavy ecosystem retains a decisive advantage in revenue generation. Overall, the findings illustrate a globally integrated market in 2025 where PC distribution via Steam outpaces console rivals, genre preferences skew toward action‑oriented titles, and premium monetisation continues to dominate the financial structure of the industry.