Hold onto your controllers, gamers: the post-pandemic glow for PC and console gaming is fading. According to research firm Newzoo, the industry’s revenue growth won’t return to pre-COVID highs until at least 2026. Here’s the cheat code breakdown:
Playtime Plummets 📉
Average quarterly gaming hours dropped 26% between 2021 and 2023—and January 2024 saw another 10% dip. Blame lighter release schedules: Sony confirmed no new God of War or Spider-Man titles are dropping soon, while PS5 sales forecasts were recently slashed.
Industry Giants Navigate Challenges 🧩
Layoffs hit Sony, Riot Games, and EA this year as companies streamline operations. Meanwhile, consolidation is reshaping the landscape: by 2023, just 28-34 publishers captured 80% of active players, down from 43 in 2021.
The Rise of Platform Games 🏰
Five titles—Fortnite, Roblox, League of Legends, Minecraft, and GTA V—claimed 27% of all 2023 playtime. Games-as-platform models (think user-generated content) are keeping these worlds fresh, says Newzoo.
TL;DR? The industry’s grinding through a side quest before its next big boss fight. 💻🎮
