Global Gaming Consoles Market By Console Type (T.V. Gaming Console, Handheld Gaming Console), By Application (Shooter, Action, Sport Games, Role-Playing, Adventure, Racing, Fighting, Strategy), Distribution Channel (Hypermarket, Supermarket, Specialty Stores, Online Platform, Offline Stores, Other Channels), End Use (Residential, Commercial), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

The Global Gaming Console Market size is expected to be worth around USD 65.00 Billion by 2032 from USD 39.3 Billion in 2022, growing at a CAGR of 5.30% during the forecast period from 2023 to 2032.

A gaming console is a device designed for playing video games. It connects to a TV or a monitor and usually comes with controllers for players to use. Gaming consoles are popular because they allow people to play games with high-quality graphics and sound. They can be used by one player or multiple players at home or online. Popular examples include the PlayStation, Xbox, and Nintendo Switch.

The gaming console market refers to the business of creating, selling, and buying gaming consoles. This market is large and growing because many people enjoy playing video games for entertainment. Companies like Sony, Microsoft, and Nintendo are the major players in this market. They compete by offering new features, better graphics, and new games to attract buyers. The demand for gaming consoles usually increases around the end of the year during the holiday season.

The study conducted by Verizon highlighted a significant 115% increase in gaming usage in the United States compared to pre-pandemic levels. During March and April, online gaming platforms and live streaming services experienced unprecedented user engagement. Peak hour gaming traffic also surged by 75% over the previous year.

In 2022, the Entertainment Software Association estimated that 66% of Americans, equating to over 215.5 million active video game players of all ages, engage in gaming. While Europe leads in average weekly gaming hours, the U.S. follows closely with an average of 13 hours per week.

According to the report, 52% of U.S. gamers use dedicated gaming consoles. However, consoles are not the most popular gaming device. Smartphones lead, with 57% of players using them for gaming, followed by consoles at 46%, and personal computers at 42%. In 2021, gaming habits showed that 29% of players spent 1 to 3 hours per week, 77% spent more than 3 hours, and 51% spent over 7 hours weekly on video games.

MiDIA Research, an entertainment industry insights firm, reported that there were over 180 million game subscriptions active in 2023. This number is projected to increase to 318.5 million by 2030. In January 2024, Microsoft’s acquisition of Activision Blizzard was a strategic move to boost their game pass subscribers by adding popular gaming franchises like Call of Duty to their lineup.

Type Analysis

The market is divided into home consoles and handheld consoles according to type.

It is anticipated that the home console segment will generate the most revenue. Additionally, the home consoles industry is anticipated to expand at the highest CAGR over the forecast period. This is mostly because more and more people are using cloud computing and playing games online in countries like China, India, the United States, and others.

Due to the small number of players in this Gaming Console Market, the handheld market is also anticipated to grow at a steady CAGR over the forecast period. Key players like Nintendo Co., Ltd. and others are focusing on expanding their brand’s reach by releasing cutting-edge consoles all over the world.

For instance, Nintendo Co., Ltd. introduced the “Nintendo Switch” in 2020. In 2020 and 2021, the company sold approximately 15 million and 17 million consoles, respectively.

End-User Analysis

The market can be divided into residential and commercial segments. It is expected that residential will grow at a significant CAGR over the next period. This market is expanding due to the increasing demand for accessories such as a gaming mouse and a 3D gaming headset that has an integrated microphone. With the advent of smart TVs with high-definition display resolutions such as 4K and 8K, the market for home consoles is expected to grow. Because they offer a richer gaming experience than other types of displays. The adoption of VR/augmented reality technologies is expected to enhance the gaming experience on home consoles.

The forecast period also predicts that the commercial sector will grow at a steady CAGR. Cloud gaming is one of the main factors driving the growth of the commercials sector. Cloud gaming is now possible thanks to improved security measures. Large amounts of gaming data can be stored and protected via cloud services. Major players are also incorporating cloud services into their gaming console market to provide a “game as-a-service” option that allows users to access and play on-demand games.

Key Market Segments

Based on Type

• V. Gaming Console
• Handheld Gaming Console
• PC Gaming Console
• Other Types

Based on Application

• Shooter
• Action
• Sport Games
• Role-Playing
• Adventure
• Racing
• Fighting
• Strategy

Based on the Distribution Channel

• Hypermarket
• Supermarket
• Specialty Stores
• Online Platform
• Offline Stores
• Other Channels

Based on End-User

• Residential
• Commercial

Driver

Technological Advancements and Integration of New Technologies

The gaming console market is driven by continuous technological advancements and the integration of new technologies such as 3D, augmented reality (AR), and virtual reality (VR). These technologies enhance the gaming experience by offering more immersive and interactive environments, attracting a broader audience to gaming consoles. Companies are integrating these technologies to meet the increasing consumer expectations for high-quality graphics and interactive gameplay​.

Restraint

Competition from Cloud Gaming Services

A significant restraint in the gaming console market is the rising competition from cloud gaming services. These services allow users to stream games directly to their devices without needing a console, which can limit the demand for traditional gaming consoles. The convenience and often lower cost associated with cloud gaming are attracting consumers, posing a challenge to conventional console manufacturers​​.

Opportunity

Expansion into Non-Gaming Applications

Gaming consoles are increasingly being used for non-gaming applications, such as streaming multimedia content (movies, music, etc.) and integrating with other smart home devices. This multifunctionality not only enhances the value proposition of gaming consoles but also opens up new customer segments beyond traditional gamers. For instance, consoles are now commonly used to access various streaming platforms, which broadens their appeal and usage​​.

Challenge

Market Saturation and Economic Factors

The gaming console market faces challenges from market saturation in developed regions and the economic factors influencing discretionary consumer spending. With many high-quality consoles and a plethora of games already available, it can be challenging for new entrants to find a foothold. Additionally, economic downturns or shifts in consumer spending can lead to decreased sales in the gaming industry, as seen during various global events that affected disposable income​​.

Regional Analysis

North America dominated the market. With the latest technology, the market is constantly growing. It is important to consider the growing popularity of the region as a result of social media trends and gaming competitions that offer millions in prizes.

Asia-Pacific will be the region with the highest gaming console market share during the forecast period. It is due to the expansion of the region’s key players, such as Sony Corporation and Nintendo Co. Ltd. This growth is also because gamers are almost five times more active in countries such as China, South Korea, and Japan than in North America. China will hold a large market share during the forecast period.

E-sport tournaments such as FIFA 20 (PS4) Open Cup and MK11(PS4) Open Cups, FIFA 20, FIFA 20 (PS4) 1on1 Major Cups, Tekken 7, ESL Malaysia Championship – Call of Duty, Mobile Qualifier 2, StarCraft 2 Open Cups, and others contribute to the country’s growing market. To maintain gamers’ trust, and reduce piracy, key players in the region have been focusing on upcoming technologies such as cloud-based streaming, 5G network, and Blockchain.

Key Regions and Countries:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

Sony Corporation designs manufactures and sells electronic products, including electronic instruments, games consoles, and other software. The company sells electronic products to professionals as well as industrial markets. The company’s major operating segments include semiconductors, game and network services, home entertainment and sound, images, music, and financial services.

The company earned around 27% of its revenue from its network and game services segment, according to the Sony Corporation’s 2018 annual report. The game and network services segment of the company includes products such as PlayStation4 and PlayStation3 (PS3) and related software like Play Station Vita and PS Vita (PS Vita).

Top Key Players

• Sony Corporation (Japan)
• Microsoft (U.S.)
• Nintendo (Japan)
• Logitech (Switzerland)
• Valve Corporation (U.S.)
• NVIDIA Corporation (U.S.)
• Sega (Japan)
• IBM (U.S.)
• Tencent (China)
• Paperspace (U.S.)
• Other Key Players

Recent Developments

• August 2022: NetEase acquires leading French game developer and publisher Quantic Dream. Quantic Dream will continue to operate independently, concentrating on the production and distribution of video games across all platforms while utilizing NetEase’s significant game development capabilities.
• Logitech G announced a partnership with Tencent Games in August 2022 to launch a cloud gaming device that combines the hardware skills of Logitech G and the software services offered by Tencent Games. The new device supports multiple cloud gaming services, so gamers will be able to play AAA games anywhere they go.

Report Scope: