Videogame consoles are likely to be the biggest growth driver in the market until 2027, research firm Newzoo said on Monday, citing strong expected sales for Take-Two’s upcoming “Grand Theft Auto VI” and the next-generation Switch from Nintendo.
WHY IT’S IMPORTANT
The videogame industry has been recovering at a sluggish pace following a post-pandemic slump, as concerns over economic uncertainties and still-high inflation dented consumer spending on consoles and games.
That led to mass layoffs, studio closures and project cancellations across the industry in 2024. But analysts expect the launch of the new Switch console and “GTA VI”, likely to be released in the summer and fall of this year, respectively, to spur a rebound.
Take-Two Interactive’s predecessor to “GTA VI” is one of the most profitable videogames in the world and has sold more than 210 million copies as of December 2024. While, Nintendo last month cut full-year sales forecast for its older console ahead of its successor’s launch.
CONTEXT
Consoles sales last year were softer, as Sony’s PlayStation 5 becomes an aging device and a weaker release slate provided consumers less incentives to upgrade.
Sony, however, said last month that upcoming titles would boost the performance of its games division. Its in-house title “Ghost of Yotei” is also set to launch this year and follows the success of “Ghost of Tsushima.”
BY THE NUMBERS
From 2024 to 2027, console software revenue is expected to grow 7 per cent, outpacing PC’s rise of 2.6 per cent, according to the report.
Console revenue in 2027 is expected to account for more than 56 per cent of the total PC and console software revenue of $92.7 billion.
Total playtime grew 6 per cent last year, with the fourth quarter seeing the highest quarterly playtime owing to the launch of Activision Blizzard’s new “Call of Duty” title.
