Gaming has steadily evolved from a niche hobby to a central pillar of global entertainment. In 2025, the PC and console gaming landscape is clearer than ever, thanks to detailed insights from Newzoo’s annual report. To better grasp this complex market, let’s translate these findings into more relatable statistics and digestible insights.
The Big Picture: PC vs Console
Overall, the combined global PC and console gaming market reached approximately $80.2 billion in 2024, with projections climbing toward $92.7 billion by 2027. Imagine the gaming industry as an entire economy—this figure nearly equals the annual GDP of countries like Sri Lanka or Luxembourg.
PC gaming showed modest growth, increasing revenue by about 2.6% annually. In simpler terms, this growth is like slowly filling a bucket drip-by-drip. Console gaming, however, rebounded strongly, anticipated to grow by 7.0% yearly from 2024 to 2027, akin to pouring water from a large jug, powered by blockbuster releases such as “Grand Theft Auto VI” and Nintendo’s “Switch 2.”
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How We Spend on Gaming
The revenue breakdown highlights distinct player behaviors:
- PC Gamers: Primarily lean towards free-to-play (F2P) games and spend money on microtransactions (MTX). Out of every dollar earned from PC games in 2024, around 65 cents came from in-game purchases, comparable to regularly buying small snacks or coffees throughout the day rather than big meals.
- Console Gamers: Prefer premium purchases (buying full games upfront). Yet, subscriptions like Xbox Game Pass significantly grew, capturing more gamer attention—imagine this as subscribing to streaming services like Netflix, shifting from purchasing individual DVDs.
What Are Gamers Playing?
Across platforms, gamers consistently focus their time on a select few titles. Nearly half of all gaming hours spent are dominated by around 10 games per platform, similar to repeatedly watching your favorite series instead of trying new shows.
- Steam: Gamers heavily favored long-standing titles. For example, “Counter-Strike 2,” initially released years ago, still topped charts, comparable to rewatching classic movies that never get old.
- Console: Newer releases quickly captured attention but faced steep competition from enduring titles like “Fortnite” and annual sports franchises such as “EA Sports FC.” Think of this as tuning into annual sports finals or catching every new Marvel release religiously.
Player Engagement Trends
The pandemic-driven peak in gaming has subsided, and players are now settling into more selective gaming habits, choosing fewer titles overall. Picture this like people initially excitedly exploring numerous streaming platforms, then gradually settling into favorites.
- Xbox & Steam: Players averaged fewer games per year by 2024 compared to the height of the pandemic. Steam, for example, saw the average number of titles played annually drop from about 13 to just 10. Imagine reducing from binge-watching several new shows every month to sticking with one or two favorites.
- PlayStation: Remarkably bucked this trend, maintaining or slightly increasing engagement thanks to blockbuster releases, illustrating how a new hit TV series can boost a streaming platform’s viewership.
Why Do Gamers Stay or Go?
Newzoo emphasizes the concept of “Recursive Nostalgia,” where reintroducing classic content temporarily reignites player interest, similar to how Netflix bringing back a beloved old show can briefly spike viewership. Yet, nostalgia alone lacks lasting impact without fresh, engaging updates.
On platforms like Steam, visibility challenges arose, as discount events became less effective. It’s like retailers discovering that frequent sales lose appeal over time; gamers become numb to constant discounts, necessitating new strategies, such as driving external traffic through influencers or social media.
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The Genres We Love
Gamers’ genre preferences provide a fascinating insight into cultural tastes:
- Shooters and Battle Royale Games: Remain popular but started losing ground to role-playing (RPG) and adventure titles. Consider this shift akin to viewers gradually shifting from action-heavy movies to complex, story-driven dramas.
- RPG Titles: Saw significant engagement growth, buoyed by narrative-rich experiences like “Baldur’s Gate 3” and “Starfield,” similar to the rise in popularity of intricate TV series that captivate audiences with deep storylines and character development.
Console vs PC: Genre Preferences
Console gamers leaned heavily towards sports, shooters, and adventure genres—consistent with broad mainstream appeal like blockbuster movies. PC gamers preferred strategic and role-playing games, showcasing niche but deeply engaged communities, akin to fans dedicated to specific book genres.
The Cost of Entry
The report reveals interesting insights regarding game pricing:
- AAA Titles: Games priced $51 or higher dominate console platforms, similar to major blockbuster movie releases that demand premium ticket prices.
- Mid-tier and Indie Games: Perform relatively better on Steam. It’s analogous to indie films gaining popularity at festivals but rarely competing directly against blockbuster movies in theaters.
Regional Insights
Gaming habits vary significantly by region:
- United States and Western Europe: Players here showed resilience in maintaining their gaming diversity, likened to urban areas with many entertainment options, maintaining stable interests.
- Asia (especially South Korea and Japan): Witnessed a significant decline in the diversity of titles played, possibly reflecting highly competitive markets where users intensely focus on fewer, highly competitive games—similar to concentrated fandoms for major pop groups.
What Does This Mean Moving Forward?
Gaming companies need to consider evolving player behaviors carefully.
- Consolidation: Players increasingly limit their attention to fewer titles, amplifying competition among new game releases. Imagine this as new TV series struggling to attract viewers who are already deeply committed to existing popular series.
- Nostalgia and Visibility: Leveraging nostalgia effectively requires integrating classic elements into innovative new experiences. Visibility challenges necessitate smarter marketing tactics beyond traditional discounts, similar to how blockbuster movies rely increasingly on social media buzz rather than just advertising.
Looking Ahead: Key Takeaways
In summary, Newzoo’s report paints a vivid picture of a highly competitive, selectively engaged gaming market. While console gaming appears poised for robust growth, driven by major releases and new hardware, PC gaming maintains steady but slower momentum, heavily reliant on long-standing free-to-play games.
Gaming is becoming less about quantity and more about quality and depth of engagement. Companies that successfully navigate this evolving landscape—by offering compelling, high-quality content and smart marketing—will capture the hearts and wallets of gamers worldwide.
Understanding these market dynamics clearly and relatably equips gamers, developers, and marketers alike to thrive in the vibrant world of gaming in 2025 and beyond.