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The PC & Console Gaming Report 2024

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Apr, 2024 The PC&ConsoleGamingReport2024©2024Newzoo.Allrightsreserved.

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The state of PC and console gaming in 2024Welcome to the second edition of Newzoo’sannual PC and console report. Last year saw many highly anticipated and delayed games make landfall while significant layoffs cast a shadow over the industry. The market did recover after a slight dip in 2022, but truly significant growth is still not on the immediate horizon. Playtime is on the decline in 2024, and market consolidation is pushing more eyes and cash into the hands of fewer games and studios. Despite all of this, we remain cautiously optimistic. There are many ways to stay in the game, especially as emerging markets bring new players to the fore and gaming weaves itself more into the mainstream. Breakout hits like Baldur’s Gate 3show that well-developed games that understand and respect their player bases while offering depth can still make their mark. In this report, we explore the state of the market today, providing insight to help stand out in a tough market. Aside from getting into trends like a downturn in playtime, this report offers insight into potential opportunities in 2024 and beyond. We also explore recent hit games to zoom in on shared best practices. This free resource draws from the NewzooPlatform, focusing on the Game Performance Monitor, with supporting data and insights from all our tools. We also delve into our Games Market Reports and Forecastsfor valuable market context.We hope you enjoy reading it as much as we loved writing it. Thanks for tuning in. Tom WijmanLead Analyst3

Gamers will clock infewer playtime hoursCompetition is fierce, but opportunities do existThe market will grow at modest ratesPlaytime has shrunk since its peak in 2021 and is trending downward.Games that have been out for six or more years are capturing over half of playtime, and that share is increasing. Fewer publishers are scooping up more player engagement and revenue, though players are still seeking out a diverse array of games.The barriers between PC, console, and mobile gaming are coming down. Many breakout titles from the last two years share success factors, giving insight into viable gameplay and storytelling strategies. Player growth in emerging markets is more promising than in established ones. There are still many trend-chasing gamers out there ready to jump on the ”next big thing.”Executive summary Last year was massive for new game releases, but the overall market is slowing down. New player growth will flatten out inthe coming years.Console gaming will be the main growth driver.Games-as-a-platform’s prevalence means every new game will have to contend with Fortniteand Roblox. 4PC and console gaminggenerated $93.5 billion (USD)in 2023, with +2.6% growth YoY.Average quarterly playtime hasdecreased by -26% since Q1 2021. 90% of new game revenuein 2023 was captured byjust 43 titles.

5This report mainly draws from the Game Performance Monitor,our Platform’stitle-level tracker, with input from the entire product suite, market analysis team, and gamer researchers. Written by Newzoo’smarket analystsPowered by data from our Platform

ContentsThe PC and console market outlookGamers are clocking in fewer playtime hoursReckoning with a crowded marketGrowth opportunitiesWhat comes next?61.2.3.4.5.Navigate the market with Newzoo6.

The PC and console market outlookGrowth will remain modest, with console as the main growth pillar moving forward

43%57%Our revenues encompass consumer spending on games: physical and digital full-game copies, in-game spending, and subscription services like Xbox Game Pass. Mobile revenues exclude advertising. Our estimates exclude taxes, secondhand trade or secondary markets, advertising revenues earned in and around games, console and peripheral hardware, B2B services, and the online gambling and betting industry.$93.5Bn+2.6% YoY2023TotalWith downloaded/boxed PC growth as a primary contributor, PC and console game revenues grew by +2.6% last year to reach $93.5 billion last year. 2023 was a massive year for game launches. Many hotly anticipated, and in some cases, delayed, titles finally made it into gamers’ hands, in some ways spoiling them for choice.A significant number of the year’s most successful games were cross-platform releases, some of which sold very well on PC, driving growth for the segment. However, much of this success didn’t supplement live service revenues or back catalog sales. Premium titles cannibalized time and revenues from the live-service heavy hitters, again highlighting that live-service monetization tends to be a somewhat zero-sum game.PC games$40.4Bn+3.9% YoYConsole games$53.1Bn+1.7% YoYSource:NewzooGamesMarketReportsandForecasts|January2024The PC and console market grew by +2.6% in 2023, with PC games contributing most to this growth8

In 2023, revenue from premium transactions accounted for 56% of PCspending and 57% of console spending.Premium’s revenue share washigh on console, partly thanks to the full slate of blockbuster premium launches. The time spent playing those games took some revenue share away from recurring spending. On top of that, successful pay-to-play live service launches that generated almost half of the year’s revenue, like Diablo IV, still generated more premium than recurring revenues (of course, recurring revenue for those titles should grow as a percent of total revenue over time).Switching gears from premium revenues, in-game spending accounted for 43% of PC and console revenues in 2023. The share of recurring revenues grew on PC despite the success of premium hits likeHogwarts LegacyandBaldur’s Gate III.Share of yearly console revenues by category US & UK 2023Share of yearly PC revenues by categoryUS & UK 202357%33%8%56%30%12%PremiumMicrotransactionDownloadable ContentSubscription*Source: Newzoo Game Performance Monitor| PC, Xbox, PS, Switch | 2 Markets (US & UK) | 2023*Subscription revenue is based on revenue generated from subscription-based consumer spend per title. It excludesmulti-game subscriptions, such as Xbox Game Pass.Premium transactions accounted for the highest shareof PC and console game revenues in 20239

49%57%57%60%51%43%43%40%$62.2 Bn+$32.1 Bn(+7.2% CAGR)$94.3 Bn-$0.8 Bn(-0.4% CAGR)$93.5 Bn+$14.1 Bn(+2.7% CAGR)$107.6 Bn20152016-2021 Growt h20212022-2023 Gro wt h2023F2024-2026 Growt h2026FConsolePCRevenue growthFrom 2015 to 2021, PC and console revenue grew rapidly, reaching $94.3 billion, with growth exceeding 50%. The market will grow by a forecasted $14.1 billion from the end of 2023 to 2026, a more conservative growth outlook than before the pandemic. Most of the growth will come from an expanding console install base and the rumored new Nintendo device. Other growth drivers will include the sizable library of content available on next-gen consoles and household budgets shifting toward late-cycle software. Developers will have to sharpen their competitive edge in light of this more modest growth. The goal for game makers will be to capture and hold player interest while also converting players to payers at scalein this saturated market environment.Our revenues encompass consumer spending on games: physical and digital full-game copies, in-game spending, and subscription services like Xbox Game Pass. Mobile revenues exclude advertising. Our estimates exclude taxes, secondhand trade or secondary markets, advertising revenues earned in and around games, console and peripheral hardware, B2B services, and the online gambling and betting industry.PC and console revenue growth 2015 -2026FSource:NewzooGamesMarketReportsandForecasts|January2024PC and console revenue growth will stay belowpre-pandemic growth levels through 202610

756M851M867M909M449M580M625M683M201820192020202120222023F2024F2025F2026FPC & console players growth over the years2018 –2026FConsolePCPC CAGR: +4%Console CAGR: +8.9%PC CAGR: +0.9%Console CAGR: +3.8%PC CAGR: +1.6%Console CAGR: +3.0%Our PC and console forecast for 2023 to 2026 anticipates a CAGR of 1.6% for PC players and 3% for console players, reaching 909 million and 683 million, respectively. The flat growth trend from 2021 to 2023F will continue as it has since the pandemic surge dwindled.Forecasted growth rates from 2023F to 2026F are significantly lower than in the period from 2018 to 2021.Slower player growth rates will impact the industry’s capacity to “expand the pie” via net organic growth. It will be increasingly challenging to grow a game’s player base, particularly in our current landscape, where evergreen titles and robust content pipelines reign supreme.Source:NewzooGamesMarketReportsandForecasts|January2024New player growth will slow down for the PC and console market in the coming years11Want a more expansive view of PC and console player growth now and in the future? The Games Market Reports and Forecaststoolkit gives you actionable data, forecasts, and trends to make smarter and bolder strategic decisions.

12* Call of Duty: Modern Warfare III and Counter-Strike 2share the same executable with their predecessors, and these rankings include the average MAU of those releases plus their predecessors.PC | 37 Markets | 20231Fortnite2Roblox3Minecraft4Counter-Strike 2 & GO*5The Sims 46Call of Duty: Modern Warfare II/III/Warzone 2.0*7League of Legends8Valorant9Grand Theft Auto V10Rocket LeagueAverage years on the market9.6 yearsPlayStation | 37 Markets | 20231Fortnite2Grand Theft Auto V3Call of Duty: Modern Warfare II/III/Warzone 2.04EA Sports FC 245Roblox6Rocket League7Minecraft8Tom Clancy’s Rainbow Six: Siege9Apex Legends10Fall GuysAverage years on the market7.4 yearsSwitch | US & UK | 20231Fortnite2The Legend of Zelda: Tears of the Kingdom3Super Mario Bros. Wonder4Mario Kart 85Minecraft6Pokémon Scarlet/Violet7Fall Guys8Animal Crossing: New Horizons9Hogwarts Legacy10Super Smash Bros. UltimateAverage years on the market3.9 yearsXbox | 37 Markets | 20231Fortnite2Call of Duty: Modern Warfare II/III/Warzone 2.03Grand Theft Auto V4Minecraft5Roblox6Tom Clancy’s Rainbow Six: Siege7Rocket League8Starfield9Apex Legends10FIFA 23Average years on the market7.2 yearsTop 10 games by average MAU in 2023Per platformGames ranking in the top 10 by average MAU are over seven years old on average and generally fall into one of four categoriesSource: Newzoo Game Performance Monitor| PC, Xbox, PS coverage for 37 Markets (excl. China & India) | Switch coverage for US & UK | 202312

Sandbox games Strengths: tools that allow for creativity and expression; strong community; active moddingcommunity.Nintendo Switch’s ranking differs significantly from the other three. It contains six exclusive titles, all of which are published by Nintendo. This makes it all the more impressive that Fortnitemanaged to top that chart, too.Gaming platformsStrengths: diversity of experiences on offer; utilizing community to power content creation and brand collaborations.Starfieldis the only single-player title to appear in the top 10 games by average MAU in 2023. That also makes it the only new franchise to appear in this top 10 ranking on any platform covered.Competitive multiplayer gamesStrengths: competitive nature, culminating in active esports scenes; compelling core gameplay loop.Annual franchise releasesStrengths: fan loyalty; licensing deals and roster updates (only applies to sports titles).Source: Newzoo Game Performance Monitor| PC, Xbox, PS coverage for 37 Markets (excl. China & India) | Switch coverage for US & UK | 2023What’s behind the success of the top 10 PC, Xbox, and PlayStation games by average MAU?13

-4%+2%-5%+3%+60%+16%+2%0%-5%+54%-12%-3%Roblox launched on PlayStation in October 2023JulFortnite and Robloxallow creators to build unique content, resulting in players getting new experiences on a consistent basis. This third-party strategy lets gaming platforms like Fortniteand Robloxstay ahead of the content treadmill. Live-service games that don’t go the games-as-a-platform route, in contrast, rely on internal development teams and can’t release content at the same pace.While Fortniteand Robloxalready gobble up a sizable player base, engagement can balloon when certain content launches. For instance, the fall 2023 launches of Fortnite OG and LEGO Fortnite, among other releases, led to significant MAU growth (without taking too many players from the Robloxecosystem). It’s essential for studios to remember that they are competing with these platform behemoths for a share of limited player hours. Maintaining a viable player base or gaining new audiences is currently always in competition with Fortniteand Roblox.Source: Newzoo Game Performance Monitor| PC, Xbox, PS coverage for 37 Markets (excl. China & India) | 2023Every new game release will have to compete with Fortniteand RobloxRobloxFortniteFortnite and Roblox MAU growth (%) by monthPC, PlayStation, Xbox | 37 Markets | July –December 202314AugSepOctNovDecFortnitelaunched OG in November 2023, and LEGO Fortnite, Fortnite Festival, and Rocket Racing in the subsequent month

Gamers are clocking in fewer playtime hoursOverall playtime is shrinking, while older games capture most playtime

-11%-4%-1%-4%-6%-1%+3%+1%-6%1%0%Q1 21Q2 2 1Q3 2 1Q4 2 1Q1 22Q2 2 2Q3 2 2Q4 2 2Q1 23Q2 2 3Q3 2 3Q4 2 3Average hours per quarter played on PC, Xbox, PlayStationJanuary 2021 -December 2023, with quarter-on-quarter growth ratesAs lockdowns ended across the world, players turned to other options for entertainment, stepping away from the screens that had sustained them during the pandemic. This trend has resulted in a -26% decrease in average quarterly playtime from Q1 2021 through Q4 2023.Typically, we would expect to see growth in Q4 (as we did in 2022) thanks to holiday releases and more available playtime hours away from work, school, and other commitments. However, this didn’t come to pass in Q4 2023. If you look ahead to this year and the next several, this trend will likely continue, evidenced, as well, by playtime being down by -10% in January 2024. Decreasing playtime may also be exacerbated by the relatively light release schedule expected this year. Ave ra g e q u a r te r l y p l ay t i m e h a s d e c r e a s e d by -26%since Q1 2021Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-202316

-11%-4%-1%-4%-6%-1%+3%+1%-6%1%0%Q1 21Q2 2 1Q3 2 1Q4 2 1Q1 22Q2 2 2Q3 2 2Q4 2 2Q1 23Q2 2 3Q3 2 3Q4 2 366 titlesaccounted for 80% of playtimein 2023, in line with the trend of the last two years. Average hours per quarter played on PC, Xbox, PlayStationJanuary 2021 -December 2023, with quarter-on-quarter growth ratesSource: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-2023Playtime per title is trending down as overall playtime declines17

61%57%45%16%24%34%23%19%21%0%10 %20 %30 %40%50 %60%70%20 2320 2220 213-5 Years< 3 Years6+ Years* New games are defined as games that launched after January 1st, 2022.Players are spending more time on games that came out six or more years ago. The time spent on these accounts for over 60% of the time spent in games in 2023.These older games are gaining an increasing share of playtime over games between three and five years old, which dropped in playtime in 2021 and 2022. The drop in playtime in 2022 can be attributed toFortnite's shift into a 6+-year-old game, but not in 2023. 2023 was a solid year for new game releases*, with the share of new game playtime rising to 23%(from 19% in 2022).Both new games and 6+-year-old games took playtime from the category of games between three and five years old. This shows just how difficult it’s become to create a game that keeps players engaged for a long time.Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-2023Titles six years old and over accounted for more than 60% of playtime from 2022 through 2023% of total hours played by release dateJanuary 2021 –December 20231827%20 2320 2220 21The top five older titles accounted for over 25% of all playtime in 2023, making it tougher for new titles to compete8.4%Grand Theft Auto V20132.9%5.2%4.3%5.9%In 2023, the top five titles out of all six-year-old games captured 27% of all playtime. These titles included the usual suspects: Fortnite,Roblox,League of Legends, Minecraft, andGrand Theft Auto V.The longevity of these titles and their supremacy over playtime, combined with the finding that playtime hours are shrinking overall, indicates how entrenched these hours are. Simply put, these hours are not part of the addressable market for other games.Minecraft2011Leagueof Legends2009Roblox2006Fortnite2017Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-20236+ Years old% of total hours played by release dateJanuary 2021 –December 20231915%20 2320 2220 21% of total hours played by release dateJanuary 2021 –December 2023Over 60% of playtime spent on new titles went to franchises with annual releases Annual franchise releasesOut of that 23% share of total playtime that went to new games (released fewer than two years ago), yearly franchise titles accounted for 60%. That means that annual releases snagged around 15% of total playtime.Annual release titles includeCall of Duty: Modern Warfare,EA Sports FC,NBA 2K,Madden,andMLB The Show.Studios hoping to release a new title will find it challenging to include these playtime hours in their addressable market, as they nearly always go to these games that engage players on a reliable annual basis. In other words, it’s a tall order to steal playtime hours from aCall of Dutyor big sports title.6.8%The Show0.4%1.7%0.8%3.9%MaddenNBA2KEAFC / FIFACall of DutySource: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-2023208%20 2320 2220 21% of total hours played by release dateJanuary 2021 –December 2023New titles competed for 8% of the total playtime in 2023New releases*The remaining playtime spent on new titles comprised 8% of the total playtime in 2023.While that may sound dire, the reality is that it’s easily possible to be successful within these constraints. The top five titles within this smaller portion of new game playtime wereDiablo IV,Hogwarts Legacy,Baldur’s Gate 3,Elden Ring, andStarfield.Collectively, these games accounted for 3.5% of last year’s total playtime.It’s worth noting that four of these titles are premium games, while only one of them is a live service.1.4%0.3%0.6%0.3%0.8%*Excl. Annual Titles (Call of Duty, NBA2K, etc.)Starfield2023Elden Ring2022Baldur’sGate III2023Hogwarts Legacy2023Diablo IV2023Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-202321New Games/Titles are defined as titles released starting in 2022.*Call of Duty: Modern Warfare is listed as a pay-to-play live service as the Warzoneis persistent with the main title.In 2023, only 48 titles accounted for 90% of new game playtimein the US and UK. Of these 48 titles, 25 were live-service pay-to-play games, 20 were premium, and the remaining three were freelive services. Live-service pay-to-play games dominated, accounting for nearly three-quarters of new game playtime. The 25 titles included the new Call of Duty and sports games, as well as popular new releases such as Diablo IV.The remaining 10% of all new game playtime was spread over 1,400+ titles. These included Assassins Creed: Mirage, Lies of P, Marvel’s Midnight Suns, and Wo Long: Fallen Dynasty. While these games didn’t accrue as much playtime as the live-service pay-to-play giants, it’s worth noting that falling into this 10% doesn’t automatically mean that these games were unsuccessful. Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 2 Markets (US, UK) | 202390% of new game playtime was spent on 48 titles, with over 1,400 titles accounting for 10% of this playtimeShare of playtime as a % of total hours spent on new titlesJanuary 2023 –December 202310%16%73%1%Live-servicepay-to-play25 TitlesPremium20 TitlesLive-servicefree-to-play3 TitlesOthers1,400+ titlesNew game playtime 2023 22Switching from new game playtime to new game revenue, you can see that even fewer titles captured 90% of revenue.Premium titles accrued 32% of new title revenue despite accounting for only 16% of playtime, while 47% of new title revenues came from annual releases.The one free-to-play title that captured play time (THE FINALS) is absent due to being launched in December 2023. While this shows that it’s difficult to directly compete with heavy-hitting pay-to-play titles, monetizing upfront and after the initial purchase seems to be a preferable strategy for live services, allowing well-oiled premium IPs to compete. MaddenNBA2KEAFC / FIFAThe Show90% of new game revenue in 2023 was captured by 43 titlesShare of new title revenue New game revenues | January 2023 –December 202359%32%10%New game revenue 2023 Premium26 TitlesOthers1,400+ TitlesLive-servicepay-to-play17 TitlesNew Games/Titles are defined as titles released starting in 2022.*Call of Duty: Modern Warfare is listed as a pay-to-play live service as the Warzoneis persistent with the main title.Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 2 Markets (US, UK) | 20232314.3%Call of Duty10.8%10.4%6.8%2.2%-11%-4%-11%-8%-10%+5%-11%-4%+27%-6%Lo oter S hoo terMOBAAction-Advent ureOpen Wo rld Su rvival C raftRealistic SportsActio n RPGHero Sh oo terAdvent ure Sandbo xTh ird-Person S hoo terFirst-Person Sho oterPlaytime by subgenre and percent change from 2022-2023Following industry trends, all subgenres are losing engagement time, except for Third-Person Shooters and Action RPGs20222023Shooters dominate the top 10 subgenres by playtime but are declining overall. Third-person shooters saw an increase, but only due to the addition of third-person mode in Call of Duty II/III/Warzone.Despite the downturn in playtime, Action RPG games managed to overcome the trend to increase (+5%), but with significant help from massive titles released in 2023 like Diablo IV, Hogwarts Legacy, and Starfield. MOBA and Adventure Sandbox games seem to be more resilient than others. However, these subgenres are driven by a few strong contenders with highly sticky user bases.MOBAs have League of Legends and DotA 2, while Adventure Sandboxes are held up by Minecraft, Roblox, and Grand Theft Auto V. These genres are likely to remain in the top 10 for the foreseeable future. Subgenres are part of the NewzooGames TaxonomyThe NewzooGames Taxonomy is a granular and cross-platform classification framework for games on a large variety of elements. It consists of over 250 variables across 12 unique categories. Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2022-202324Keep tracking playtime and revenuesGo beyond the report with Newzoo’s Game Performance Monitor, the leadingdata tool for trackingthousands of PC and console games globally. Coverageofthetopplatforms:Playing, spending, and viewing playerdata for PC and console games10,000+GamestrackedacrossPC,Xbox, PS,andNintendoSwitch3737 markets covered worldwide,9 regions100+MetricsincludingMAU,DAU, lifetimeplayers,and revenuePlayeroverlap, acquisition, retention, and churn betweentitlesTracking data onmillions of players’ behavior perplatformPremium and recurring revenue for 1000+ games in 6 markets25Take the product tourFind out moreReckoning with an overcrowded marketHow do you get discovered and stand out in the PC and console market?Declining playtime is just one of the challenges facing today’s PC and console games market. We also see that, over time, fewer publishers are scooping up an outsized share of engagement. In each month of 2023, between 28 and 34 publishers commanded 80%* of MAUs, a publisher count that has been trending down since 2021.What’s more, a group of 23 publishers was consistently present in this list in 2023, with five additional publishers appearing in this ranking at least eight months.This left little room for other publishers to break through, but several studios managed with single or multiple titles. Prominent examples included LarianStudios’Baldur’s Gate 3and Gearbox Publishing’sRemnant IIandRisk of Rain 2.Publishers capturing the top 80% MAU in all 12 months of 2023: 2K, Activision Publishing, Bandai Namco, BHVR, Bethesda, Blizzard, Bungie, CDPR, Capcom, Epic Games, Epic Games Publishing, Mojang, Psyonix, Riot, Roblox, Rockstar, SIE, Square Enix, Ubisoft, Valve, Xbox Games Studio, miHoYoPC and console publishers commanding the top 80% by MAUJanuary 2023 –December 2023MonthNumber of PublishersJan32Feb28Mar28Apr30May30Jun31Jul34Aug32Sep29Oct29Nov28Dec28A small number of publishers dominated the PC and console market in 2023* Newzoolooked at 80% of MAU for each title measured during a single month as a measure for the majority of player engagement.These MAU are not deduplicated, meaning a player was counted once for each title they played during a specific month.Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 202327390 187 136 26 397 186 136 28 – 5 0 100 150 200 25 0 3 00 3 50 400 45 090%80%75 %50 %Average number of titles capturing % MAU share per month2021 versus 2023Fewer companies are scooping up most of the engagement, but players are still playing a diverse array of titles20212023Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-2023While publishers are grabbing more engagement, players are still getting into roughly as many titles as before. Title diversity has yet to see as significant an impact as publishers in terms of MAU.The number of games capturing 75% of players in 2023 was identical to how many achieved the same thing in 2021 and close to identical in the other brackets.The trend suggests that fewer publishers are finding success with more titles. The industry may be consolidating, but players aren’t following suit in terms of how many games they play (just that their playtime hours are dropping). 28#3Top 250Top 5020%46%No franchiseHas franchiseGame studios are relying on safer bets like established franchises to improve discoverability80%54%Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2023Players flock to recognizable franchises. Over half of the top new games in 2023 (by MAU) were installments in a franchise. While attracting players to a new title that’s not part of a franchise is rare, it’s not impossible. Success can come from a studio’s fame or unexpectedly stellar quality.If you look at the top five games that aren’t from franchises, you can note that several are First-Person Shooter titles with quite unique gameplay angles. % of top new PC/console releases in 2023 by MAU Franchise versus no franchiseTop five games of 2023 with no franchise by MAUPC, PS, Xbox | 37 major markets | Dec 2023#1THE FINALS#2BattleBit RemasteredReady or Not#4Starfield#5Party Animals29Live services+60%This launch propelledFortnite’s MAUs by +60%, helping the game reach its highest engagement levels in three years.+134%The launch also significantly boosted monthly revenues in the US and UK, increasing by +134%.Fortnite OG launched in November 2023Long-standing game developers are well positioned to leverage their large back catalogs of beloved IP through remakes and remasters. Square Enix, for instance, launched Final Fantasy VII Rebirth, thesecondpart of a trilogy leveraging nostalgia for the single original Final Fantasy VII from 1997. Addressing the potential risks of drawing from one IP and not another, Capcom surveyed fans directly, asking which of their many IP they would be most excited to see return. Over 7 million units soldFinal Fantasy VII RemakeYo u d o n ’ t n e e d t o s t a n d o u t i f g a m e r s k n o w y o u r I P s—Remakes and remasters remain a viable way to use nostalgia to capture player interestLeveraging back catalogsSource: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2023Over 6 million units soldResident Evil 4 RemakeAnnouncedMGS 3 RemakeAnnouncedSilent Hill 2 Remake30Original Resident Evil 4 MAUMarch 2022 –December 2023Mar 2022May 2022Ju l 20 22Sep 2022Nov 2 02 2Jan 20 23Mar 2023May 2023Ju l 20 23Sep 2023Nov 2 02 3Resident Evil 4 Remake Released+57%+285%Average MAUs increased for the original game by +285% compared to pre-announcement MAUs.When Capcom announced it was remaking Resident Evil 4, the original game’s MAUs shot up, with this increase getting even more significant once the remake actually launched. Remakes can renew the popularity of their original games—Resident Evil 4’s remake increased the original game’s engagement (by MAUs)Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | March 2022 –December 2023Resident Evil 4 Remake AnnouncedAverage MAUs increased for the original game by +57% after the remake announcement.31Average MAU increase around transmedia campaigns and releasesAnalysis of 35 game IP releases0.0 M0.2 M0.4 M0.6 M0.8 M1.0 M1.2 M1.4 M1.6 MMA U b ef ore m ed iaann ou nce(3 mo nth A verag e)Announce MonthMA U Betwee nAnnounce/Release(A verag e)Rele ase M onthMA U af ter me dia releas e(3 mo nth a verag e)+35%The average MAU increase for games in a franchise after a transmedia release is +35%.The power of transmedia—Film and TV adaptations can increase their game of origin’s engagement (MAUs) at launchTransmedia strategies have the power to re-engage fans of a franchise and boost engagement across its entire catalog.The success of these strategies has led to 36 video game IPs being in production as of July 2023. Nintendo is even investing in animation and film production for future endeavors.Across the 11franchises we examined, transmedia campaigns and releases have had a net positive effect on their games. Both new and returning MAU generally increased after an adaptation’s announcement and/or release, with engagement remaining elevated for three months after a release (compared to before anannouncement). While a transmedia play isn’t an automatic win—many film and TV adaptations have fallen flat critically and/or financially—recent big releases likeThe Super Mario Bros. MovieandThe Last of Usshowed that video game IPs can break records and win coveted media awards. Source:NewzooGamesMarketReportsandForecasts|July 2023 3210-2021-3536-65AgeGender29%47%24%33%41%26%33%46%21%72%28%67%33%60%40%PCConsoleMobileCrossing into mobile gaming has allowed the Call of Duty franchise to broaden and diversify its audience baseCall of Duty | Demographics by platform played on | 2023Base: Played Call of Duty (any title) in the past 6 months on each platform | Global (36 markets)With 2019’s Call of Duty: Mobile, the franchise’s venture into the mobile space, Call of Duty expanded its demographic reach.Mobile players tend to be a more diverse cohort, depending on which game you look at. Our consumer research in 2023 showed that 40% of Call of Duty players globally who also play on mobile are female-identifying gamers. Also, by expanding to mobile, Call of Dutyfirmly established itself in the 10-to 20-year-old demographic, who are likelier to play on mobile (and console).33MaleFemale!Source: Newzoo Global Gamer Study2023 Q. Social media or chat applications actively used (past 6 months). In-game items/virtual goods spent money on (past 6 months). Base: Call of Duty console gamers (n=8,676), Call of Duty PC gamers (n=5,508), Call of Duty mobile gamers (n=7,382)FIFA | Demographics by platform played on | 2023Base: Played FIFA (any title) in the past 6 months on each platform | Global (36 markets)31%43%26%32%41%27%33%42%25%71%29%69%31%63%37%Expanding EA FC to mobile has helped EA bring its popular football (soccer) franchise to mobile-first geographiesExpanding into mobile gaming has been less of a demographic play for EA Sports FC and more of a way to capture mobile-first players in certain markets.Football is the world’s most popular sport, and many places filled with football fans may not have a critical mass of PC and console gamers.In emerging markets, only a fraction of players have access to the gaming PCs or consoles needed to play EA Sports FC 24, but they still want to play the world’s leading football game.When EA Sports FC Mobile launched, 2.2 million people installed the game on day one, with 11.2 million new users downloading it over its first ten days*.34Source: Electronic Arts Inc. Q1 24 Earnings Slides, Newzoo Global Gamer Study2023 Q. Social media or chat applications actively used (past 6 months). In-game items/virtual goods spent money on (past 6 months). Base: FIFA console gamers (n=10,884), FIFA PC gamers (n=4,490), FIFA mobile gamers (n=5,893)*EA Sports FC 24 Sees Massive Fan Engagement to Kick Off New Era of Football | Official Press Release10-2021-3536-65MaleFemaleAgeGenderMobile!PCConsole0%25 %50%75 %Apr/23May/ 23Jun /2 3Jul/23Aug/23Se p/ 23Oct/2 3Nov/23De c /2 3Jan/24Release: 6 SepAided awareness involves showing players a list of titles so they can pick the ones they know or have heard of. It’s a vital metric powering our Game Health Tracker.Pre-and post-launch aided awarenessBase: Past 6 months PC and/or console players | United StatesAided awareness is critical for pre-release strategies, but tracking once a game is out is also useful. Especially as games tend to plateau in terms of how much buzz they have as they mature. We compared awareness of three RPGs before, during, and after the release of new content.Baldur’s Gate 3 came from a niche studio with an outstanding reputation in the genre. It had gained awareness pre-launch due to the Baldur’s Gate franchise and three years in beta. After it launched to broad acclaim, awareness shot up.Starfieldis an entirely new IP, but it’s also a new RPG by one of gaming’s most acclaimed studios, Bethesda.Cyberpunk 2077, released in December 2020, plateaued in awareness last year but still experienced small ups and downs. DLC releases, updates, and other game launches may have contributed to these changes.* Titles are updated based on release schedules each monthStarfieldBaldur’s Gate IIICyberpunk 2077Release: 3 AugPhantom LibertyDLC drops: 26 SepSeveral pricedrops announcedHitting the right notes and timing in marketing helps put a title at the top of mind before, during, and after a title’s releaseDLC release date announced 11 Jun 35Source:Newzoo|Game Health Tracker, Q. Aided awareness (upcoming and released titles)Base: April 2023 to January 2024 | Past 6 months PC and/or console players in the United States (~n=3,000 per month)Growth opportunitiesDespite a decline in playtime and increased competition, growth is still possibleCapturing lightning in a bottle has never been easy, and it’s only getting harder. Only a few games can leverage a massive marketing budget or pre-existing cultural significance.You can find common success factors between hit games to understand what contributed to their unique impact. These factors never tell the whole story, but they help to define commonalities between breakout titles (like the seven in the table).Each of these titles rebuilt familiar core gameplay loops into compelling experiences, bringing in fans of multiple genres and franchises. These games also stuck to those core gameplay loops,spotlighting the essence of each title.Developer support and community building are also important, even for the single-playerBaldur’s Gate 3. Many went through Early Access (or are still in it), showing a willingness to incorporate player feedback. These games all remain the core focus of their respective development teams.Social elements and virality play a large part in many breakout games’success. There is often entertainment value beyond the core gameplay. Every game here also had immense quality and depth, cutting no corners togive players the richest possible experience.MONTH 0MONTH 1MONTH 2MONTH 3Baldur’s Gate IIIBattleBit RemasteredPal worldLethal CompanyTHE FINALSReady or NotHel ldiv ers 2Breakout titles by MAUAligned by release dateMany of the breakout games released in the last 12 months shared success factors Source: Newzoo Game Performance Monitor| PC, Xbox, PS | 37 Markets (excl. China & India) | 2021-2024370. 02.04.06. 08. 010.012.014.016.0NB A 2 K24Madden NFL 24EA Sports FC 24Call of DutyReady or NotLethal CompanyBaldur’s Gate IIITHE FINALSPart y An ima lsRemnant IIEn shrou dedThe payer overlap index measures how much more likely the primary game’s player base is to spend money in other titles compared to the average payer on that platform. Palworld’ssuccess at the start of 2024 overlapped with other breakout titles. The list on the left contains successful titles that launched after January 1st, 2023, and had a 150,000 (at least) MAU overlap with Palworld. First, the high overlap between breakout titles shows there is an audience of multiplayer-first gamers who are willing to spend money to try new, high-quality experiences with their friends. Second, this group is not over-indexing on globally popular titles, such as Call of Duty or sports franchises.Reaching this group can help with the virality of a game, which may lead to more excited players who also spend money on it. A game that overlaps with the “next big thing” has the potential to inherit that coveted moniker in the future. Palworld’spayer overlap with other breakout titles shows there’s a cohort of players always ready to jump on the “next big thing”Source: Newzoo Game Performance Monitor| PC (Steam), Xbox | 2Markets (US, UK)| January 2024Payer overlap index for titles with >150,000 overlap MAUBase game: Palworld38

Share of payers & time spent playingBy number of platforms played on | Base: Total playersPlatform overlapBase: Total playersPlayed on1 platformPlayed on2 platformsPlayed on3 platformsShare of payersAverage time spent playing per week41%69%85%4h8h 24m11h 18m9%8%13%16%15%All 34%Played on 1 platform: 52%Played on 2 platforms: 32%Played on 3 platforms: 15%Nearly half of players (47%) play on two platforms or more. Players who engage with more platforms tend to invest more time and money into gaming. Thismeans that expanding beyond a single platform can provide more routes to reach attractive and potentially lucrative player groups. Like any expansion strategy, the right experience and reverence for specific gaming audiences are needed. If you’re thinking of expanding to the mobile market, here are some key questions:•Your game’s demographics will change. How will you deal with that?•What does this mean for your messaging? •What channels should you use to communicate with your audience?•Should you enable cross-play between mobile and non-mobile versions? •Does your monetization strategy fit mobile? There’s practically no market for premium games on mobile—if your game doesn’t thrive off microtransactions, the best option may be licensing your game to Netflix or Apple Arcade.39The barriers between PC, console, and mobile gaming are coming down—There are players willing to cross platform boundaries to play and paySource: NewzooGlobal Gamer Study2023 (Global weighted average across 36 markets)Q. Platform player overlap, Payers (past six months), Time spent per week per platformBase: Total players (n=58,040) Players that have played on one platform (n=29,099), Two platforms (n=18,920), Three platforms (n =10,021)35%Mobile onlyTotal79%Total41%Total43%

Source:NewzooGamesMarketReports&Forecasts|January2024$40.5Bn$40.2Bn$54.1Bn$54.5Bn$51.8Bn$37.1BnIn the next several years, most new players entering the PC and console space will come from emerging gaming markets. Player numbers will grow in established and emerging markets, but growth in the latter will far outpace the former. Emerging markets will see 23 times more player growth on the PC side of things, while emerging console player growth will eclipse established markets by more than double. In a competitive industry, emerging markets present an opportunity to grow player bases outside of commonly targeted places. Finding the right messaging and distribution channels to reach these new player segments will be an important success factor moving forward. 2023F2024F2025F2026FCAGR +0.2%CAGR +4.7%CAGR +2.2%CAGR +4.8%Established markets are North America, Europe, Eastern Asia (including China, Japan & South Korea), and Oceania.Emerging markets are Latin America, Africa & the Middle East, Central and Southern Asia, and Southeast Asia. Players are defined as having played a game on PC or console in the past six months.Player growth in emerging markets will significantly outpace established markets40Comparing player growth on PC and console in established versus emerging markets2023F-2026FPC playersin establishedmarketsPC playersin emergingmarketsConsole playersin establishedmarketsConsole playersin emergingmarkets

Cloud gaming awareness, usage, and interest in trying are higher than average in emerging markets.Just over 32% of the (urban) online population within the emerging markets covered are aware of cloud gaming services (almost 5% above the global average). Respondents in emerging markets score higher than the global average on experience trying cloud gaming services andinterest in trying.Various cloud gaming service providers have successfully expanded into mobile-first regions such as Latin America, India, and Southeast Asia. These services often partner with local telco and OTT firms for reach and mostly come in the form of a subscription.Providing gaming content to these services can help provide an early foothold in these markets. Yes, ARPPU for these subscription services is low, but it’s an opportunity to grow alongside these markets to gain a first-mover advantage.Players in emerging markets generally don’t own home consoles.By removing the hardware requirements (the most significant barrier to entry), cloud gaming is likely the most viable way to reach players in emerging markets, given the current economic conditions.Cloud gaming awareness in emerging marketsBase: Total (urban) online population in emerging markets*32.5%67.5%69.9%27.5%2.6%41Partnering with cloud gaming providers is a powerful way to unlock emerging marketsCloud gaming usage in emerging marketsBase: Total players aware of cloud gaming in emerging markets*AwareNotawareTrieditInterestedin tryingNotinterestedSource: NewzooGlobal Gamer Study 2023Q. Cloud gaming awareness; Tried cloud gamingBase: Total (urban) online population in emerging markets* (n=32,373); Total players aware of cloud gaming in emerging markets* (n=9,821) *Emerging markets included: Brazil, Mexico, China, Indonesia, Philippines, Vietnam, Thailand, Malaysia, Argentina, India, Saudi Arabia, United Arab Emirates, South Africa, Colombia, Chile, and Egypt.

What comes next?There are still opportunities for growth in PC and console gaming. Despite playtime declining and competition increasing, there are still opportunities out there waiting to be seized.Retaining players will be one of the key challenges moving forward (it already is), so mixing monetization models may reduce the risk when games aren’t able to engage players for longer stretches of time. Look to other breakout games in your genre or with other key similarities to see what resonates. Many players are working through extensive backlogs or have their default live-service games, so anything you release has to be more focused and polished to gain their attention.Be aware of macrotrends outside the gaming industry.PC and console gaming (and gaming in general) is constantly weaving more closely into the wider entertainment world. Many of the trends in the wider entertainment industry will also be pervasive in video games (and vice versa). For game makers, transmedia storytelling has never been as prevalent as it is now. The second highest-grossing movie of 2023 was The Super Mario Bros. Movie, and the HBO adaptation of The Last of Us raised the bar on storytelling across the entire TV medium. Transmedia strategies may be the right lever to pull for your studio, though you must have a very clear and guarded approach to how your IP can be used. Emerging markets will provide a cohort of new, excited gamers. New player growth may be stagnating in Western markets, but emerging markets are brimming with new players.The PC and console player base in emerging markets is growing quickly. Reaching these players is a solid play for AAA and indie studios alike. Of course, reaching new players in emerging markets or really any market requires sharp strategic thinking. It’s not a one-size-fits-all solution. Embracing cloud gaming may be a more prevalent way to reach these emerging markets, as it removes many technical barriers to giving more players access to huge games with heavy hardware requirements.The PC and console market may be in a tough spot, but there are many ways to stay ahead of the game42

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L Isaac SimonSenior Writer & EditorTom WijmanLead AnalystContributorsBen PorterDirector ConsultingAlexis PamborisResearch DirectorWriting and analysisDiego RondonTelloDirector of MarketAnalysis & ConsultingMary BruneHead of Consumer InsightsOrla MeehanResearch ManagerMichiel BuijsmanSenior Market AnalystDesignSpyros GeorgiouDesign LeadNgoc Linh NguyenVisual Design InternTyler LongDirector of Product Devan BrennanManagement Consultant Michael WagnerSenior Market Analyst45Brett HuntBusiness DevelopmentEditingMeet the authors of this report

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