The video game industry, valued at around $60 billion, is amid an evident shift in revenue generation channels. There has been a surge in the popularity and financial contribution of virtual in-game goods, like those in Fortnite, and subscription services like Microsoft Corp's
These alternatives to conventional standalone game purchases mark a pivotal moment in the evolution of gaming.
This shift is so pronounced that according to Ampere Analysis, gamers will likely spend nearly $21 billion on in-game items and subscription services in the current year, comparable to what they would shell out for game downloads and physical discs.
As the Financial Times reports, the allure of these in-game purchases has significantly amplified since the advent of Fortnite in 2017.
Change in Spending Behavior
The rise in living expenses is prompting players to reconsider splurging to $70 on games with uncertain enjoyment value. Instead, many prefer free-to-download games like Fortnite and Apex Legends.
Once in the game, players often spend real or virtual currency on accessories like outfits, weaponry or gaining access to fresh content.
Interestingly, a minority of these players are responsible for most of the revenue from such free-to-play games.
Market Dynamics and Challenges
The global earnings from console games will likely ascend by 1.3% this year, approximating $42 billion, following a slump in 2022.
Furthermore, the broader market, including hardware, is anticipated to grow by nearly 5% to reach $61.5 billion.
However, this change in preference among players is making it intricate for console creators, developers, and publishers.
Sony Group Corp
Trending "Live Service Games"
Games like Fortnite, Roblox Corp
Major console publishers, including Activision Blizzard Inc
The Road Ahead for Sony
Despite its current challenges, the console market's revival seems to be on the horizon. Bolstered by better availability of PS5 and robust sales of Nintendo Co, Ltd
While Sony reported 40 million PS5 unit sales till late July, the company has recently been observing a slowdown. However, the holiday season, backed by a strong content pipeline, will likely be crucial for the industry.
