Gaming Industry Growth Slows: What the Latest Newzoo Report Reveals About Console Sales and Future Trends

Jakarta, CNBC Indonesia – The annual growth of the games industry is expected to decrease. This is due to slow demand for game consoles, according to research firm Newzoo.

Game console revenue is pegged to a 1% year-over-year (yoy) drop. In its report in the first quarter (Q1), Sony said that PlayStation 5 sales were ‘only’ 2.4 million units.

This figure is down from 3.3 million units in the same period last year, quoted from CNBC Indonesia, Thursday (15/8/2024).

In its official blog, Newzoo said that the growth of the gaming industry is expected to be 2.1% yoy to US $ 187.7 billion (Rp. 2,948 trillion).

This figure is less than the prediction made in January which put the growth of the gaming industry at 2.8% or US$ 189.3 billion (Rp. 2,973 trillion).

Nearly half of consumer spending on games throughout 2024 is expected to come from the United States (US) and China. Newzoo said the US would collect sales of US$47 billion, while China would collect US$45 billion.

Even if the targeted growth is an increase from 0.6% last year, the game industry is not experiencing the same level of growth as it was during the difficult times of the Covid-19 pandemic.

Between 2020 and 2021, the gaming industry experienced massive growth. This is because people have to do activities at home, so they have a lot of time for entertainment at home such as playing games.

After the pandemic ended and people returned to activities outside the home, the game industry faced challenges. In addition, high interest rates make people more cautious in buying goods.

From early 2023 to 2024, the gaming industry is also under pressure and forced to make a big deal around the world. Many veteran game studios are cutting thousands of employees.

Nevertheless, Newzoo game market analyst Michiel Buijisman said that the game industry is expected to recover in 2025.

“Growth in the game console market in 2025 is likely to revive,” he said.

One of the reasons for this growth was the release of new consoles. For example, the successor of the Nintendo Switch with popular new games such as Grand Theft Auto. This can buy people’s interest.

(fab/fab)

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