Newzoo's latest report provides a detailed look into the state of the PC and console gaming markets in 2025. The analysis offers projections through 2027, along with data on monetization strategies, player behavior, and content trends across platforms. The console segment is expected to take the lead as the primary driver of growth in the coming years, while the PC market continues to show steady performance with unique strengths.

PC and Console Gaming to Hit $92.7 Billion by 2027

Market and Revenue Growth

Between 2021 and 2024, the PC gaming market grew by 1.2%, while the console market expanded by 2.1%. Looking ahead, Newzoo projects growth of 2.6% for PC and 7% for consoles between 2024 and 2027. By 2027, the total market is forecasted to reach $92.7 billion. As of the end of 2024, the PC segment was valued at $37.3 billion. The console market, despite a decline of 3.9% in 2024, stood at $42.8 billion.

The decrease in console revenue last year is attributed to market adjustments following the pandemic and an unusually strong release calendar in 2023. Nonetheless, growth is expected to resume in 2025 and beyond, supported by anticipated releases such as GTA VI, a new Nintendo Switch model, and the start of a new console generation.

PC and Console Software Revenues in Billions USSDS

Monetization Patterns and Spending Behavior

Premium game sales on PC declined by 2.6% year-over-year in 2024. However, smaller gains were recorded in microtransactions and downloadable content (DLC), which grew by 1.4% and 0.8% respectively. Despite the rising popularity of premium models, free-to-play (F2P) titles continue to dominate revenue generation on PC. The lack of significant growth in the PC player base has made audience monetization a key challenge. While younger generations, such as Gen Z and Alpha, show potential for increased spending, their current spending habits remain modest relative to their playtime.

In the console segment, revenue from full game sales fell by 14%, reaching $19.9 billion. However, subscription services saw a notable increase of 14.1%, growing to $6.9 billion. Microtransactions and DLC sales also grew, reaching $13.9 billion and $2.2 billion respectively. This suggests that recurring revenue models are becoming more important within the console ecosystem.

Share of yearly Console Revenues by Business Model

Trends in Player Playtime and Game Engagement

The final quarter of 2024 recorded the highest total player playtime since the first quarter of 2021. This was primarily driven by engagement in buy-to-play titles and strong performance from games such as Call of Duty, which had a measurable impact on overall platform trends. Free-to-play titles also contributed, with Roblox growing its playtime by 21%, Fortnite by 8%, and Marvel Rivals gaining audience share from Overwatch 2.

PlayStation experienced the most significant increase in playtime in 2024, with a 21% rise. Meanwhile, PC and Xbox maintained stable playtime levels. On PlayStation, Call of Duty accounted for 16% of total playtime, followed by Fortnite at 15%, and Roblox at 3%.

New game releases made up only 12% of total playtime across platforms in 2024. Older games, especially those more than six years old, remained dominant, accounting for 57% of playtime. Notably, even when considering new projects, annual franchises such as Call of Duty and EA Sports FC held a significant share. On consoles, new games represented 15% of playtime, compared to 8% on PC. However, non-annual releases performed slightly better on PC, contributing 7% of playtime, compared to 6% on PlayStation and 5% on Xbox.

Playtime by Quarter - All Platforms 

Platform-Specific Performance and User Preferences

Revenue-wise, the PC remains a strong platform for launching new titles, particularly those outside of annual franchise cycles. On consoles, annual releases continue to drive both engagement and hardware purchases. On PC, 12 titles accounted for 50% of playtime, while on PlayStation and Xbox, 9 and 11 games respectively reached the same threshold. The number of buy-to-play titles contributing to top-tier engagement is increasing on PlayStation, though this trend is not mirrored on PC, where fewer B2P games now fall within the 90% total playtime bracket.

Genre preferences also indicate shifts in player interest. Shooter games and role-playing games (RPGs) continue to grow in popularity, while Battle Royale titles have been on a downward trend since 2021. On consoles in 2024, sports games, shooters, and Battle Royale remained the most played, whereas shooters were the dominant genre on PC.

Percent of Yearly Revenues Going to New Releases 

Player Habits and Game Variety

Newzoo’s analysis of over one million users showed that most players engage with a limited number of games. Between 31% and 34% of users played just one to three games over the course of the year. Additionally, over 95% of users on each platform played titles within the top 50. PlayStation was the only platform where the average number of games played per user increased since 2021.

On consoles, there has been a steady decline in the share of games under two years old. However, Steam experienced growth in this area during 2024, largely due to the visibility of indie and AA projects. Players who engage with a larger number of games tend to prefer the B2P model, as F2P titles often demand longer time commitments.

Steam also stands out for its stronger audience interest in PvE games and RPGs, with RPGs gaining traction on the platform since 2021. On consoles, while Battle Royale games continue to lose ground, genres such as adventure, RPGs, shooters, and sports games are seeing increased engagement. Users who play a greater variety of games are less likely to focus on Battle Royale and shooter genres.

Annual Number of Titles Played Per Person

Steam Visibility and Promotion Trends

In 2024, external traffic accounted for 46% of Steam’s total traffic, up from 37% in 2016. However, the effectiveness of individual promotional campaigns has declined over time. For example, the average visibility increase from promotions such as Weekend Deals dropped from a 38-fold increase in 2019 to just 7.4 times by the end of 2024. Despite this, launch discounts remain a strong tool, capable of boosting game views significantly. While popular projects tend to rely less on external traffic, likely due to platform algorithm support, smaller games are increasingly dependent on external visibility to gain traction.

hare of Steam Game Page Traffic Derived From External Sources

Conclusion

Newzoo’s 2025 report illustrates a gaming market in transition. Consoles are expected to lead future growth, driven by new hardware cycles and high-profile releases. The PC market, while growing at a slower pace, continues to be important for new and diverse game offerings, particularly in the buy-to-play and indie segments. Shifts in player preferences, engagement models, and content strategies will shape the market over the next few years, as publishers and developers adjust to evolving patterns of play and spending.

Source: Newzoo