Video Game Industry Braces for Sluggish Growth in 2024 Amid Weak Console Sales

The global video game market is expected to see modest growth in 2024, as weak console sales continue to impact the industry, according to a new report by market research firm Newzoo. The firm predicts the industry will grow by 2.1% year-over-year, reaching an estimated $187.7 billion.

This figure marks a slight downgrade from an earlier forecast in January, where Newzoo anticipated a 2.8% growth, with the industry reaching $189.3 billion in 2024. The revised outlook reflects ongoing challenges in the console market, which is expected to see a 1% decline in revenue this year.

Despite the sluggish growth, the U.S. and China remain dominant players in the global gaming landscape. Together, these two markets are projected to account for nearly half of all consumer spending on video games in 2024, with the U.S. generating $47 billion in sales and China close behind at $45 billion.

While the anticipated 2.1% growth rate is an improvement from last year’s 0.6% increase, it pales in comparison to the rapid expansion seen during the height of the COVID-19 pandemic, when gaming saw a significant surge in popularity.

Michiel Buijsman, Newzoo’s principal games market analyst, noted that despite the expected sluggish performance in 2024, the industry is poised for a significant rebound in 2025. Buijsman predicts that the console market, in particular, will “return with a bang” next year, suggesting that the current downturn may be a temporary setback.

This outlook comes in the wake of Sony’s recent announcement that it sold 2.4 million units of its PlayStation 5 console in the first fiscal quarter, down from 3.3 million units sold during the same period last year. This decline in console sales has been a key factor in the tempered growth projections for the gaming industry in 2024.