Global gaming console market was valued at USD 53.98 billion in 2021, and it is expected to reach a value of USD 97.85 billion by 2028, at a CAGR of 8.87% over the forecast period (2022-2028).
Westford, USA, Aug. 02, 2022 (GLOBE NEWSWIRE) -- It is no secret that the gaming console market is on the rise. With the release of the Nintendo Switch, Sony PlayStation 4 Pro, and Microsoft Xbox One X, there has never been a better time to be a gamer. But what is driving this demand?
There are a few factors that are driving the gaming console market. Firstly, there is an increasing demand for console-quality gaming experiences. This means that more and more people are looking for gaming consoles that can provide them with AAA experiences.
Secondly, there is a growing trend of casual gamers who are looking for ways to play games without having to invest in a high-end PC or gaming laptop. Gaming consoles offer a great way for these casual gamers to get their fix without spending a lot of money.
Lastly, there is an increasing number of people who are interested in streaming and recording their gameplay. Gaming consoles offer an easy way to do this, and many consoles now come with built-in streaming and recording capabilities.
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What Does a Recent Study on Gaming Console Market by SkyQuest Suggests?
Global consumption of gaming console market has been increasing at a rapid pace in recent years. This is due to the popularity of video games and the fact that consoles are now more affordable than ever before. In fact, it is estimated that there are now more than 1.2 billion gamers worldwide.
This growth in the gaming console market has led to a surge in the sales of gaming consoles. In 2017, console sales reached an all-time high of 37 million units. This was a 9% increase over the previous year. The two best-selling consoles were the Nintendo Switch and the PlayStation 4.
With the increasing demand for gaming consoles, there is also a corresponding increase in the supply of these devices. In 2022, it is estimated that there will be 62 million units of consoles shipped globally. This is an increase of 11% from 2020 shipments. In 2021, Nintendo Switch emerged as the largest gaming consoles, around 25 million units were sold in this year. Whereas, Sony and Microsoft sold nearly 12.59 million PlayStation and 8.75 million Xbox respectively.
The Asia-Pacific region is expected to be the largest market for gaming consoles, with shipments reaching 26.8 million units by the end of 2022. North America is expected to be the second largest market, with shipments totaling 17 million units.
It's no surprise that the PlayStation 4 was the best-selling console of 2021 in the global gaming console market. Sony's console has been on the market for four years now and has amassed a large fan base. The Xbox One also had a strong year, thanks in part to its lower price point and exclusive titles like Halo 5: Guardians and Gears of War 4.
The Nintendo Switch was the surprise success story of 2021. The console was only released in March of 2017, but it quickly became a hit with gamers of all ages. Its unique design and innovative gameplay features set it apart from its competitors.
SkyQuest believe that the global consumption of gaming console will continue to grow in the coming years. This is due to the increasing penetration of high-speed internet, rising support by OTT platforms, and growing purchasing power of consumers around the globe.
Covid Left a Profound Impact on Gaming Console Market, and Still Recovering
As per a latest report published by SkyQuest Technology, the novel coronavirus has had a profound impact on the global gaming console market. The pandemic has affected production, supply chains, and consumer spending, all of which have contributed to a decline in production of gaming consoles. This has further widened the demand-supply gap.
The outbreak of the virus in China, where many of the world's gaming consoles are manufactured, disrupted production and supply chains. In fact, the Sony has reported that they are struggling to meet the consumers demand for PlayStation 4 Pro and other gaming console due to limited supply of semiconductor chips. They are also witnessing a strong pile up of orders that are yet to fulfil. This trend continues to 2022. Wherein, people around the globe, especially in Asia Pacific are facing challenges to get their hands on new PlayStation 4 Pro. This led to a shortage of consoles and a decline in demand as consumers were unable to purchase the consoles they wanted.
SkyQuest has also observed that the demand for gaming console market is very high in India and China that they are importing the gaming console from nearby countries. In fact, most of the distributors and retailers black-marketing the product at higher cost and consumers are ready to pay the premium just to get their hands on the limited number of the gaming consoles. However, this has had a negative impact on the earning of the companies like Sony and Microsoft as consumers started moving to other gaming consoles. This is further affected by growing inclination of consumers towards buying used gaming console.
The virus has also impacted consumer spending as people around the world have lost their jobs or seen their income decline. This has led to a decrease in demand for gaming consoles as people have less money to spend on discretionary items like video games.
The impact of the coronavirus on the gaming console market highlights how globalized our world is and how vulnerable supply chains are to disruptions. The outbreak is also a reminder of the importance of diversifying manufacturing locations to reduce the risk of disruption.
SkyQuest Technology has published a report on gaming console market. The report has covered market analysis, pricing analysis, consumers’ spending behavior, supply chain analysis, covid Impact, market trends, and market dynamics, among others. This report help you understand how the market is growing and what are current trends, challenges, threats, opportunities in the global gaming console market.
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VR Gaming Console Could Be Game Changing
VR gaming is no longer a niche interest. With the launch of the PlayStation VR, Sony has brought virtual reality gaming to the masses, and it's fair to say that the results are pretty impressive. Sony is also planning to launch VR2 soon. Not only is the PSVR one of the most immersive gaming experiences users can have, it's also incredibly accessible, thanks to a price tag that's far lower than its PC-based rivals.
The PSVR is still very much in its early stages of the global gaming console market, and it remains to be seen whether or not it will catch on with the wider gaming public. However, if Sony can continue to deliver high-quality VR experiences at a reasonable price point, then it's definitely possible that the PSVR could become the new standard for console gaming.
But what does this mean for the future of console gaming market? Well, SkyQuest has assessed the market and understood how it will affect the market in the coming years.
Declining Spending on Gaming to have Temporary Impact on Gaming Console Market
Global gaming industry is in a bit of a slump. Sales of gaming consoles and games have been declining for the past few years, and according to the latest earning reports from Sony and Microsoft, that trend is continuing.
Both companies reported lower than expected sales in 2021 for their gaming divisions, and Sony's CEO even went so far as to say that the company is "reviewing its strategy" for the PlayStation business.
It's not all doom and gloom though. Nintendo, who has been struggling as of late, managed to turn a profit thanks to the success of its new console, the Nintendo Switch. And while overall spending on gaming is down, there are still plenty of people willing to spend money on the hobby.
The question now is how can Sony and Microsoft turn things around? What will it take to get people interested in buying their consoles again? SkyQuest Technology has identified the factors that needs to addressed to overcome this temporary slump in the earning, but it's clear that both companies need to make some changes if they want to stay relevant in the gaming world. To know more how the report by SkyQuest on gaming console market would help you understand insights into consumer behaviors, their buying patterns, age group, potential consumer group by age, nationality, and race,
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Top Players in Global Gaming Console Market
Sony Corporation (Japan)
Microsoft Corporation (US)
Nintendo Co., Ltd. (Japan)
Logitech Inc. (Switzerland)
Valve Corporation (US)
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