Well-recognized market research firm Newzoo has presented its latest report Games Market Trends to Watch in 2024. This study combines data from Newzoo’s Games Market Reports and Forecasts with expert insight from market analysts to help gaming companies strengthen their strategic decision-making. The document explores the overall outlook of the global games market in 2024, including the main growth drivers in PC and console gaming; how live-service and premium game strategies will evolve after 2023; some predictions for the future of the Nintendo’s next generation of consoles; what will happen in the mobile games space, including potential new app store launches and how mobile developers are expanding their total addressable markets; the continuing impact of generative AI on gaming, and more.
In this sense, Newzoo explains the market generated an estimated USD 184 billion in 2023, a small 0.6% increase over 2022. The data firm added it was optimistic for the PC and console segments, while mobile gaming is likely to recover after difficult conditions for the past couple of years. The global video games market will expand by 2.88% to generate USD 189.3 billion in 2024. The compound annual growth rate from 2021 through 2026 was estimated at 1.3%.
NEW TRENDS TO CONSIDER
Considering upcoming trends, in general terms, Newzoo described some key points: a) The market will continue to recover and grow; b) 2024 will be a lean year for gaming companies; c) Multi-game subscriptions’ growth will slow down; d) Companies will return to developing premium games; e) Mobile developers will turn to PC gaming; f) The next Nintendo console will launch with a new 3D Mario game; g) Xbox will present a mobile store on Android; h) Nostalgia will be a key driver for live-service games; i) Generative AI will accelerate game production in a few ways, but won’t significantly impact game production at scale in 2024, and j) Open-world Soulslike games will take the spotlight.
“One of the main growth drivers this year will be the ever-growing install base of the Xbox Series and PlayStation 5 generation. Even though this year’s release catalogue is expected to be less impressive than 2023’s absolutely packed schedule of much anticipated hits, live-service games and back catalogue sales will drive growth in the segment,” stated the report.
GAMES, GENRES AND STRATEGIES
Newzoo analysts expressed they think the industry is restructuring. The cash and investments that flooded the market during the pandemic have dried up considerably, and funding massive new projects is no longer a top priority. That’s why games companies will employ risk reduction strategies like avoiding new IPs. Instead, they’ll focus on sequels and leveraging existing IPs. Companies will also continue exploring small-experience AAA titles.
The live-service games model will still be the most dominant for revenue attribution, but the gold rush for creating new live-service games is slowing down. People are moving away from live-service games, opting to play premium games if the quality is good enough.
Titles confirmed for release in 2024 include Another Crab’s Treasure, Rise of the Ronin, Black Myth: Wukong, Enotria: The Last Song, and Flintlock: The Siege of Dawn.
Extraction shooters have also been blowing up since last year’s boom. Extraction Royale is the next evolution of the Battle Royale genre. Escape from Tarkov, Hunt: Showdown, and Dark and Darker have demonstrated this subgenre’s rising popularity.