It’s rumored that Nintendo will release a new Switch console in late 2024, and if true, it will be the first “ninth generation” console (joining the Sony Playstation 5 and Microsoft Xbox Series X/S) that can be played on the go. The Nintendo Switch platform can be partially credited for kicking off a new era of high-fidelity portable gaming, where portable gaming PCs such as Valve’s Steam Deck and even mobile phones capable of playing formerly PC/console-native titles, like the recently released iPhone 15, have become the norm.
Portable gaming is attractive for the same reason virtual reality devices have yet to reach critical mass: convenient access to compelling entertainment experiences. From mobile gaming to cloud access, the video game industry is pushing toward a world where games can be accessed anywhere and at any time. Mobile gaming in particular has become the largest sector in the gaming industry, yielding the most opportunities for marketers.
Though 2024 may lack the heft of content from 2023, how and where the content is accessed will become increasingly diversified, reflecting the multifaceted ways consumers access media—which doesn’t always involve a device strapped to their face.
A new normal for video game industry growth
Tracking revenue in the gaming industry has never been a simple endeavor, and yet the task became all the more complicated in recent years as pandemic-era impacts continue to cause ripple effects. While the death of the gaming industry has been greatly exaggerated, 2024 will be the benchmark year for a new normal in terms of overall industry growth.
A surge in video game-related spending during the peak of the pandemic (around 2021), when consumers were hungry for in-home entertainment, disrupted growth trends that had been established in previous years. Revenue in 2022 “declined” relative to the abnormal pandemic boost from 2021. As a result, all eyes were set on 2023 as a return to growth given a bumper crop of highly anticipated titles (many of which were delayed by the pandemic) that would in turn bolster gaming hardware sales, which had similarly been throttled by pandemic-related supply chain issues.
The strength of this release slate positioned game consoles as the growth story of 2023, where segment revenues were up 7.4%, outpacing PC and mobile growth and driving overall industry revenue up 2.6% to an estimated $187.7 billion.
Analysts anticipate a return to this level of steady revenue growth in 2024, essentially reflecting a return to normalcy from the pandemic years. Revenues will be buoyed by a spillover of 2023 demand in the first half of the year and a potential console refresh anchoring the next holiday season. In short, gaming revenues will finally stabilize toward steady growth after a turbulent series of valleys and peaks over the past few years.
