Global Gaming Console Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Gaming Console Market Analysis

The robust growth of the gaming sector, the rising interest in online gaming, and the increasing popularity of esports are some factors favouring the gaming console demand. With the increasing participation of women in online gaming, the surging use of technology for entertainment, the thriving video games market, and growing accessibility to the internet, the demand for gaming consoles is also rising.

Factors like increasing disposable incomes, the rising availability of various gaming options, and the growing awareness regarding the numerous benefits offered by gaming consoles are some significant gaming console market trends. Video game consoles that enable gamers to download videos and audio, browse the internet, listen to music, and watch videos simultaneously while playing games are gaining significant popularity, especially among the young population.

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Gaming Console Market Trends

Advancements in Technologies to Bolster the Demand for Gaming Consoles

Rapid technological developments and innovations like advanced audio-visual systems are positively contributing to advancements in gaming consoles. Technologies like augmented reality (AR) and virtual reality (VR) are revolutionising gaming consoles by rendering realistic environments and characters and creating immersive audios to surge the engagement of users. The development of innovative devices that can facilitate live streaming gameplay sessions, watch-along, and streaming parties is also favouring the growth of the gaming console market. Moreover, there is an increasing adoption of wireless and feature-rich gaming controllers with features like audio devices, haptic feedback, built-in microphones, and high-definition motion controls to provide a better on-screen experience to users.

The growth of game streaming services has made high-resolution gaming accessible on various devices, removing the necessity for powerful local hardware. Major platforms like Xbox Cloud Gaming and Google Stadia are major examples of this as they allow users to stream games directly from the cloud. This advancement not only increases access to gaming but also strengthens the move towards a subscription-based model for video games.

Demand for Immersive Gaming

With the growing demand for immersive gaming experiences, key players are foraying into the 3D gaming console market and introducing gaming consoles with advanced technologies such as virtual reality (VR), motion sensor technology, Bluetooth, and online functions, among others. As per the gaming console industry analysis, in the forecast period, the rising accessibility to 5G technology is anticipated to allow for advanced gaming and faster upload and download in gaming consoles.

The latest gaming consoles, such as the PlayStation 5, contain advanced haptic feedback and adaptive triggers in their controllers. This technology allows players to feel subtle vibrations, varying levels of resistance, and unique textures. For example, in games like Gran Turismo 7, gamers can experience the sensation of a bowstring being pulled or the vibrations from navigating different terrains, enhancing the overall sensory experience of gaming.

Industry News

September 2024

Microsoft announced the launch of its new Xbox Series consoles, including an all-digital version of the Xbox Series X, and is also working on a next-gen Xbox console.

September 2024

Sony announced the launch of PlayStation 5 Pro, a more powerful version of its gaming console, with a price of USD 699.99.

Opportunities in Gaming Console Market

AI is enhancing gameplay by enabling dynamic and adaptive experiences, where non-player characters (NPCs) can learn from player actions and adjust their behaviours accordingly. In 2024, video games are incorporating AI to customise experiences, leading to unique storylines and gameplay paths shaped by player choices. A prime example of this is found in open-world games such as Cyberpunk 2077, which leverage AI to develop environments and interactions that feel both responsive and genuine, aiding the gaming console market revenue.

The cloud gaming sector is experiencing significant expansion, as platforms such as Xbox Cloud Gaming and PlayStation Now allow users to stream games without requiring high-performance local hardware. This development improves access to premium games across a range of devices, broadening the audience beyond just conventional console users. With around 295 million cloud gaming users worldwide, these services are leading the charge toward a future where gamers can experience AAA titles with minimal hardware demands.

Gaming Console Market Restraints

In early 2024, there was a significant decrease in console shipments compared to the previous year. This trend indicates the effects of a maturing console generation, as consumers are holding off on purchases in anticipation of forthcoming hardware updates from leading manufacturers such as Sony and Microsoft. The expectation surrounding new models tends to dampen current sales, with many gamers opting to postpone their purchases until the next-generation consoles become available.

Additionally, the high costs associated with consoles and their accessories pose a challenge to the gaming console demand forecast. The latest models, including the PlayStation 5 and Xbox Series X, often entail extra expenses, such as controllers, subscriptions, and in-game purchases, which may be difficult to afford for some consumers. Given the prevailing global economic disruptions, severe spending on premium gaming equipment is likely to be further limited, particularly among casual gamers or families with limited budgets.

Market Dynamics

Subscription services are readily gaining popularity as they provide access to a wide range of games for a single monthly fee. Xbox Game Pass and PlayStation Plus offer players a large selection of titles at a fixed price, allowing them to discover new games without making individual purchases, which can also positively impact the gaming console demand forecast. These subscription models also benefit developers by offering steady revenue and improving user retention. By 2024, these services have become vital for gaming platforms, meeting the demand for cost-effective and diverse gaming experiences.

Console game makers are also offering free-to-play games with enhanced personalisation and customisation options to gain a competitive edge over PC and mobile gaming. For instance, Xbox has announced several free-to-play games scheduled for release in 2024, including Throne and Liberty, an MMORPG developed by NCSoft and Amazon Games. This game offers an interesting storyline and provides players with a wide range of character customisation options.

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Gaming Console Industry Segmentation

“Gaming Console Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

A gaming console, variously known as a video game console, is a specialised device which is primarily designed to play video games. Some popular gaming consoles include Wii U, PlayStation 4, Xbox One, RetroN 5, and Leap TV, among others.  Gaming consoles offer various advantages over PC and mobiles as they are easy to setup and use, low maintenance, and boast processing capabilities and graphics for use in gaming.

Based on type, the market can be segmented into:

• Home Consoles
• Handheld Consoles
• Hybrid Consoles
• Dedicated Consoles
• Others

On the basis of platform, the gaming console market segmentation includes:

• PlayStation
• Xbox
• Wii
• Others

Based on end use, the market is divided into:

• Personal
• Commercial

On the basis of distribution channel, the market is divided into:

• Online
• Offline

On the basis of region, the market is classified into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Gaming Console Market Share

By Type Insights

Increasing demand for home consoles to augment the growth of the market. As per the market analysis, home consoles are increasingly preferred by customers due to their better gaming experience. Favourable features of home consoles such as online multiplayer gaming experience and cloud support, among others, are also boosting their appeal among gamers, and increasing the gaming console industry revenue.

Handheld console to enjoy substantial popularity over the forecast period, supported by its portability. In upcoming years, the demand for handheld consoles is anticipated to significantly increase amid the growing preference for portable devices with higher accessibility. The rising launch of handheld consoles with affordable prices is positively influencing the gaming console market development. In June 2023, the ASUS Republic of Gamers (ROG) launched ROG Ally, a Windows 11 handheld gaming console that can support different Windows titles, in India at an affordable price of INR 69,900.

By Platform Insights

Sony's PlayStation holds a significant market share due to its strong position fuelled by exclusive game titles, virtual reality features, and the widespread popularity of the PlayStation 5, which can further contribute to the demand of gaming console market. Following closely is Microsoft's Xbox, which leverages its Xbox Game Pass service to attract a varied audience with a vast game library and cloud gaming options. This subscription model, along with the availability of the Xbox Series X and S, has enabled Microsoft to maintain a significant market presence.

By End Use Insights

Personal use accounts for a major market share and is expected to witness a CAGR of 7.9% between 2024 and 2032 due to the rising popularity of home entertainment systems, with gaming consoles like Sony's PlayStation and Microsoft's Xbox which are readily used for individual gaming experiences. Furthermore, the increasing availability of digital and cloud gaming services supports this preference for personal use, allowing users to access extensive game libraries from the comfort of their homes. While commercial use does occur, especially in places like gaming lounges and arcades, it remains a secondary focus compared to the widespread adoption of consoles for personal gaming at home.

By Distribution Channel Insights

Online distribution channel holds a significant gaming console market share and is expected to witness a CAGR of 7.9% in the forecast period due to their convenience, enabling consumers to buy consoles and download games directly from digital storefronts. This growth is further supported by the emergence of cloud gaming services such as Xbox Cloud Gaming and Google Stadia, which allow users to enjoy gaming without requiring high-end hardware.

Additionally, online platforms offer extensive reach, facilitating connections between manufacturers and a broader audience while simplifying the purchasing process for digital downloads and subscription services like Xbox Game Pass and PlayStation Plus.

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Gaming Console Market Regional Analysis

Asia Pacific Gaming Console Market Dynamics

The Asia Pacific is expected to grow at a CAGR of 9.3% in the forecast period owing to the increasing penetration of home consoles and dedicated consoles in the region. The increasing number of casual gamers and a young customer base are further propelling the growth of the gaming console industry. India, China and Australia are expected to grow at CAGRs of 10.7%, 8.9%, and 6.3% respectively.

The presence of key players such as Sony and Nintendo, among others, is boosting the availability of gaming hardware and software at affordable prices in the region. The Japan market, particularly, is likely to thrive in the forecast period at a CAGR of 5.6% due to the widespread gaming culture and rising gaming software development in the country. Besides, innovations in console game subscriptions, experiences, and content are likely to propel the market demand in the forecast period.

North America Gaming Console Market Trends

The North America region, especially the United States and Canada, plays a crucial role in the market with CAGRs of 7.7% and 8.9% between 2024 and 2032. The gaming console market opportunities are fuelled by a surge in gaming consoles found in homes and a robust demand for high-end technology. Recently, subscription services such as Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus have surged in popularity, providing users with access to a vast library of games for a monthly subscription fee. This approach not only generates a consistent revenue stream but also enhances the lifespan of gaming consoles by keeping users engaged with a wide variety of gaming choices.

Europe Gaming Console Market Growth

The European market has different gaming preferences throughout the region. Sustainability has emerged as an increasing priority, leading console manufacturers to explore eco-friendly practices. As per the gaming console market dynamics and trends, there is an increased interest in cloud gaming and digital distribution models, enabling European consumers to enjoy a wide range of games without the need for physical copies.

As per the industry reports, by July 2024, the PlayStation 5 sold around 1.5 million units across Europe, which was far more than its competitors. The Nintendo Switch sold 780,000 units, while the Xbox Series X and Xbox Series S reached only 210,000 units.

Middle East and Africa Gaming Console Market Outlook

This region is experiencing growth in the gaming console market, owing to its young and tech-savvy population and enhanced internet connectivity. In the Middle East, especially in Gulf nations, significant investments have been made in local content and collaborations with telecom companies to offer bundled gaming and internet services. This localisation strategy addresses the specific preferences of consumers in these areas, facilitating gaming console market expansion. Furthermore, the rising popularity of e-sports events is anticipated to further increase the demand for high-performance gaming consoles in the MEA region.

Latin America Gaming Console Market Drivers

In Latin America, countries such as Brazil and Mexico are experiencing a rise in the use of gaming consoles, driven primarily by a young population and better internet connectivity. Moreover, streaming and subscription services have become increasingly popular, providing consumers with cost-effective ways to access games.  This region has one of the largest gaming audience growth of any region from 2015 through to 2024. In 2021, it was estimated that 289.3 million players in Latin America would spend USD 7.2 billion on gaming, with a 27% share for console games.

Innovative Gaming Console Startups

Startups are increasingly leveraging high-end technologies like AI, virtual reality, and blockchain to create unique experiences and enhance existing products. These businesses are building platforms that feature AI-powered characters, enabling realistic interactions in games through natural language processing and machine learning. Furthermore, other startups in the gaming console market are offering VR-based social gaming environments, which allow users to design and participate in virtual spaces across multiple platforms, including VR headsets and mobile devices.

Inworld AI

Established in 2021 and located in California, Inworld AI specialises in the development of AI-powered characters for video games. This innovative startup uses high-end natural language processing and machine learning techniques to create characters that are interactive and emotionally responsive, thereby enhancing the immersive experience for players. Inworld AI's objective is to infuse greater depth and personality into game characters, making them appear more lifelike and engaging, which is especially advantageous for games that emphasise storytelling and role-playing elements.

Proof of Play

Founded in 2021 and headquartered in New York, this startup harnesses blockchain technology to develop a decentralised gaming ecosystem. This platform empowers players to authenticate and monetise their in-game accomplishments, offering rewards in the form of digital assets or cryptocurrency for their gameplay efforts. Proof of Play's blockchain-centric model enables gamers to derive tangible value from their in-game activities, which is increasingly attractive in a market that prioritises player rewards and digital ownership.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global gaming console market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, investments, expansions of capacity, and plant turnarounds. Several market players are focusing on enhancing their product offerings through advanced hardware, unique gaming experiences, and expanded digital services. For instance, Sony is upgrading its PlayStation lineup with new hardware designs and investing in virtual reality technology to enhance user immersion. At the same time, Microsoft is expanding its Xbox Game Pass service by adding popular titles and promoting cross-platform gaming through cloud services.

Key Industry Players

Sony Corporation

Sony Corporation, a subsidiary of Sony Group, is a leading player in the global consumer electronics, entertainment, and gaming sectors. The company is especially well-known in the gaming world for its PlayStation console series, with the latest version being the PlayStation 5.

Microsoft Corporation

Microsoft Corporation is a prominent technology company, providing a wide range of products and services, including software, cloud computing, and gaming. Its Xbox brand holds a prominent place in the console market, featuring popular models like the Xbox Series X and Series S.

Nintendo Co., Ltd

Nintendo Co., Ltd., headquartered in Kyoto, Japan, is one of the most iconic names in the gaming industry, famous for beloved franchises such as Mario, Zelda, and Pokémon. The Nintendo Switch, launched in 2017, has seen immense success due to its innovative hybrid design, allowing it to function as both a handheld device and a home console.

Other major market players are Logitech International SA, Atari Inc., Meta Platforms Technologies, LLC, Samsung Electronics Co. Ltd., Valve Corporation, HTC Corporation, ASUSTEK Computer Inc., and Anbernic, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Recent Developments

August 2024

Lenovo announced that it is planning to launch a new version of the Legion Go handheld gaming console which is expected to possess a smaller display.

August 2023

Nintendo announced that it was working on its next-generation console, which aimed to build upon the legacy of the Nintendo Switch, offering improved graphics and increased portability.