An attendee uses a Nintendo Switch game console while playing a video game at the Paris Games Week (PGW), a trade fair for video games in Paris, France, November 5, 2023. REUTERS/Claudia Greco/File Photo
(Reuters) -Videogame consoles are likely to be the biggest growth driver in the market until 2027, research firm Newzoo said on Monday, citing strong expected sales for Take-Two's upcoming "Grand Theft Auto VI" and the next-generation Switch from Nintendo.
WHY IT'S IMPORTANT
The videogame industry has been recovering at a sluggish pace following a post-pandemic slump, as concerns over economic uncertainties and still-high inflation dented consumer spending on consoles and games.
That led to mass layoffs, studio closures and project cancellations across the industry in 2024. But analysts expect the launch of the new Switch console and "GTA VI", likely to be released in the summer and fall of this year, respectively, to spur a rebound.
Take-Two Interactive's predecessor to "GTA VI" is one of the most profitable videogames in the world and has sold more than 210 million copies as of December 2024. While, Nintendo last month cut full-year sales forecast for its older console ahead of its successor's launch.
KEY QUOTES
The power of major console releases such as Sony's "Spider-Man" and "God of War" is driving players to spend more time on their consoles, Emmanuel Rosier, director of market analysis at Newzoo, told Reuters.
"And these kinds of AAA or AAAA releases have less impact on PC," he added, attributing the trend to PC gamers' preference for older titles.
BY THE NUMBERS
From 2024 to 2027, console software revenue is expected to grow 7%, outpacing PC's rise of 2.6%, according to the report.
Console revenue in 2027 is expected to account for more than 56% of the total PC and console software revenue of $92.7 billion.
Total playtime grew 6% last year, with the fourth quarter seeing the highest quarterly playtime owing to the launch of Activision Blizzard's new "Call of Duty" title.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Mohammed Safi Shamsi)
