San Diego, CA—October 30, 2024
DFC Intelligence, the longest standing research and advisory firm focused exclusively on the video game industry, expects 2025 to mark the beginning of a long period of significant growth for the sector. DFC today revealed initial details of its annual industry report (full report available in December), including forecasting 15% growth in the PC and console game software market over the next four years, from US$72 billion in 2024 to US$83 billion in 2028. This represents a dramatic turnaround after two years of declining revenue and industry upheaval.
“We’ve been monitoring and analyzing the video game industry since 1995, and over the past 30 years it’s grown twenty-fold,” noted DFC Intelligence founder and principal David Cole. “While the pandemic initially boosted the market tremendously, it’s been trending downward since early last year, with 2024 representing a chaotic nadir that included mass layoffs, extensive closures and acquisitions of small and mid sized studios, and disappointing hardware and software sales. We expect 2025 to mark the beginning of a major upswing that will last at least through the end of the decade.”
Following are the five biggest trends for 2025 and beyond, according to DFC’s forthcoming annual report, which specifically covers the PC and console sectors and will be available in its entirety in December:
- Record Market Growth: After two years of decline the PC and console video game market is poised for record growth, surpassing the previous record highs set during Covid.
- Hardware Spending: In 2023, high-end game consumers spent more on game-related hardware than on software for the first time. This includes console systems, gaming PCs, and game related accessories. DFC expects this to continue for the foreseeable future.
- New Consoles: DFC Intelligence has recently completed preliminary scenario-based forecasts for the upcoming systems from Nintendo, Microsoft and Sony over the next five years. In the next hardware generation, it is expected that only two major console systems will be successful. While Nintendo is expected to do well, DFC predicts that either Sony or Microsoft will be unsuccessful in gaining meaningful market penetration.
- Shifting Publishing Landscape: Revenue from add-on content (not including subscription fees) for major console and PC games will exceed revenue from full games in the coming years. As major publishers focus on live services and ongoing revenue, there will be a sizable opportunity for smaller developers to have considerable success launching new game franchises. Sophisticated development tools, including AI, will allow high-end games to be created with smaller teams and budgets.
- Battle for Distribution: Control of distribution will be a key battleground among large players in the game space. This includes Steam, PlayStation, Xbox, Epic, Nintendo, Amazon, Google, Nvidia and other companies that directly reach consumers. In addition, PR, community relations, company reputation, sophisticated guerrilla marketing, product tie-ins and general marketing expertise will become more important than ever as the field is overcrowded with high quality games.
DFC’s full 2024 video game market report will be available in December. An executive summary will be provided in a future issue of DFC’s free monthly newsletter.
About DFC Intelligence
Founded in 1995 by a team of veteran management consultants including current CEO David Cole, DFC Intelligence is the oldest research firm dedicated specifically to the video game industry. DFC’s decades of market data and expertise, coupled with its forward-looking approach to analysis and guidance, has attracted a stellar client base that includes nearly every major hardware and software provider in and around the video game industry. DFC has covered every significant development in gaming since the dawn of the internet, from Games as a Service (GaaS) to VR/AR, the metaverse, and AI – and in many cases has accurately predicted the biggest market shifts, from milestone tech advancements to changing consumer behavior.
Media Contact:
Garth Chouteau
garthchouteau@gmail.com
