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Dhaka Tribune

Decline in gaming to cause negative growth for console gaming sector

On average, quarterly playtime decreased by 26% from 2021 to 2023

Update : 04 Apr 2024, 11:49 AM

Research firm Newzoo predicts that the growth of revenue in the personal computing and console gaming sectors will lag behind pre-pandemic levels until at least 2026. According to their report, the market is anticipated to expand by 2.7% from the end of 2023 to 2026, significantly lower than the 7.2% growth rate observed from 2015 to 2021.

One of the main factors contributing to this subdued growth is the decline in playtime among gamers. On average, quarterly playtime decreased by 26% from 2021 to 2023, a trend expected to persist due to a lack of major gaming releases, leading to a further 10% drop in playtime in January.

This reduction in playtime is affecting industry dynamics, as Newzoo notes that slower player growth rates will limit the industry's ability to expand through net organic growth. Additionally, major players in the gaming industry, including Sony Group, Tencent Holdings' Riot Games, and Electronic Arts, have implemented layoffs and scaled back operations.

Moreover, the gaming industry is witnessing consolidation, with fewer publishers capturing a larger share of player engagement. In 2023, between 28 and 34 publishers held 80% of monthly active users, down from previous years. 

Meanwhile, a handful of popular titles like Fortnite, Roblox, League of Legends, Minecraft, and Grand Theft Auto V dominated playtime, with Fortnite and Roblox thriving due to their games-as-a-platform model, which fosters ongoing content creation by players and creators.

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