Game Consoles Market - By Type, By Application, By End Use, By Generation, Forecast 2025 - 2034

Game Consoles Market Size

The global game consoles market size was valued at USD 55.8 billion in 2024 and is anticipated to grow at a CAGR of over 5% between 2025 and 2034. The expanding popularity of online gaming along with the new subscription services is a prominent growth factor. Game subscription services are focused around Xbox Game Pass, PlayStation Plus, and other similar programs that allow players to pay a small fee monthly to access hundreds of new games every month.
 

The game subscription service from Xbox Game Pass achieved 30 million users worldwide by 2024 indicating rising worldwide interest in these types of services. These platforms not only provide new ways to play video games at a reasonable price but also create opportunities for active play with other users through additional content. The availability of high-speed internet alongside cloud gaming features has made online gaming easier to access so consoles requiring strong online functions have seen increased market demand.
 

Next-generation graphics combined with high processing capability continues to fuel gaming console market. Gaming consoles attract casual as well as hardcore users due to their superior performance features that include ray tracing technology combined with better frame rates and quicker loading systems. High performance gaming consoles rise in demand because consumers require devices that match their 4K and 8K TV capabilities.
 

Game Consoles Market Trends

• Gaming console market is experiencing significant growth driven primarily by the advancements in technology, changing consumer preferences, and government policy changes. Gaming consoles are being supplemented by Cloud gaming services such as Xbox Cloud Gaming and NVIDIA GeForce Now which enable gamers to play without expensive gaming hardware.
   
• The global gaming ecosystem is expanding as seen in the revenue generated by the game development studios in Australia, which was USD 345.5 million in 2023, an increase of 21% from 2022. This growth shows a higher need for better games which directly influences the selling of gaming consoles. There is a trend among game developers to consistently create more interesting games. This also means that the demand for consoles that can play these games will increase.
   
• Digital downloads of games are overtaking physical sales due to convenience and the emergence of online shops including PlayStation Store and Xbox Marketplace. According to Allcorrect Group, as of June 2022, around 552.4 million people in China played online games, making the penetration rate of 52.6%. Subscription services, including Xbox Game Pass and PlayStation Plus, are becoming more commonplace.
   
• Many governments are now taking action to curb in-game purchases to better protect customers. For example, European Union, which imposed rules in 2023 on microtransactions for video games. New Data privacy regulations in Europe such as GDPR have implications for the way these gaming companies manage user information hence there is increased focus in protective and compliance systems.
   

Game Consoles Market Analysis

Based on application, the market is divided into online gaming and offline gaming. In 2024, the online gaming segment accounted for a market share of around 81.1% and is expected to grow at a CAGR of 5.2% during the forecast period.
 

• The growth of online gaming as a business segment primarily results from the rising number of smartphone and tablet ownership. Online gaming providers experience substantial high growth possibilities due to the 6.92 billion smartphone users worldwide in 2023.
   
• Developing economies are witnessing an increase in disposable income, which is allowing customers to spend on gaming consoles and online gaming subscriptions. For instance, global per capita disposable income increased by 4.5% in 2023 compared to 2022.
   
• The online gaming sector has enormous potential due to the growth of the e-sport industry. Newzoo states that the global e-sports market is predicted to be more than USD 1.6 billion in 2025 from increased e-sports audience engagement and sponsorships.
   
• People globally prefer to play games with friends on online social media and video consoles. This is due to the improvement in technology of gaming tools as well as the popularity of online video games.
  The availability of quality online gaming devices has led to an increase in the use of modern gaming consoles like the PlayStation 5 and Xbox series X.
   

Based on end use, the game consoles market is categorized into residential and commercial. The residential segment dominates the market with market share of over 65.8% in 2024.
 

• The residential market growth is mainly because most households own gaming consoles. According to YouGov 77% of people own televisions and 31% own DVD players but gaming consoles remained in third place with 27% ownership during 2022.
   
• Increasing internet penetration such as 5G for seamless online gaming provides a boost for online gaming amongst residential users. Global subscriptions to 5G are projected to exceed 1.5 billion by 2024 which will allow for a better gaming experience at home.
   
• Residential gaming segment is also booming with the use of consoles for cloud gaming services. The increasing popularity of cross-platform titles amongst gamers like “Fortnite” and “Call of Duty: Warzone” has increased the attractiveness of gaming consoles to residential users.
   

Based on type, the game consoles market is categorized into home console, handheld console, and hybrid console. The Handheld console segment dominates the market in 2024.
 

• The market demand for handheld consoles is growing because these devices provide users with mobility and easy accessibility. The Nintendo Switch handheld console reached sales of greater than 139 million units in 2023 because consumers desire portable gaming devices.
   
• The growth of handheld consoles is further enhanced by the expanding list of cross-platform games. Users of handheld consoles has also increased due to the availability of popular games such as Minecraft and Fortnite.
   
• Video games adoption is on the rise due to which people prefer handheld gaming consoles more. People find handheld devices more appealing because of the convenience and flexibility that comes with being able to game wherever they want.
   
• Increasing need for affordability, portability, and longer battery life when compared to home consoles are reasons for their market expansion. The popular games, cloud gaming, and performance improvements in the devices are also driving the popularity of handheld consoles.
   

The U.S. dominated the North America game consoles market with a value of USD 13 billion in 2024 and is expected to grow at a CAGR of 5.4% during the forecast period. 
 

• As per the report by the ESA for the year 2024, 65% of the population of America population play video games and 54% of these gamers use gaming consoles.
   
• In 2023, The Federal Communications Commission (FCC) announced that broadband coverage in the U.S. reached 92% which shows a high level of high-speed internet access throughout the country, which accelerates the use of online gaming services and is boosting the gaming console market.
   
• Germany is one of the prominent countries in European game consoles market, where significant growth is anticipated during the forecasted period. As reported by the German Games Industry Association, 58% of the Germans between age group of 6 to 69 play video games and there is an increasing tendency towards console gaming. Also, the greater availability of through the increasing popularity of eSports is increasing the demand of gaming consoles in the country.
   
• China market is driven by Esports culture, presence of vast number of game developers such as Tencent, and local policies encouraging the adoption of video games. In 2023, according the report by China Audio Video and Digital Publishing Association, China’s domestic gaming market reached a value of USD 41.68 billion in 2023 up from a growth rate of 13.95% from 2022 which is contributing to growing demand of game consoles in the country.
   
• Saudi Arabia is becoming one of the most notable countries for game console sales in the Middle East and is projected to grow rapidly during the forecast period. Government initiatives to promote digital entertainment as part of Vision 2030 an increasing internet penetration are boosting the market.
   

Game Consoles Market Share

• The gaming console market is consolidated with top 5 players including Sony, Microsoft, Nintendo, Valve, and ASUS held a share of about 60-65% in 2024.
   
• Sony focuses on achieving competitive advantage and strengthening its market position through innovation in its PlayStation series. In November 2024, Sony launched PlayStation 5 Pro which is designed to enhance gaming experiences with advanced ray tracing and AI driven upscaling for sharper images and superior gameplay. Sony also focuses on its subscribers for the PlayStation Plus, which offers cloud gaming for a vast number of games. Their strategic partnerships with game developers God of War, Spider Man enhances Sony’s position in the market.
   
• Microsoft focuses on its Xbox ecosystem, cloud gaming and cross-platform compatibility to give access to its subscription service; the Xbox Game Pass for maintaining its position in the gaming console market . Acquisition is one of the strategy adopted by Microsoft for strengthening its product portfolio. For example, Microsoft acquired Activision Blizzard to enhance its market presence.
   
• Nintendo offers Switch consoles which offers portability and versatility which solidifies its leading position in the handheld gaming console market. Nintendo also focuses on maintaining competitive pricing and achieving loyal customer base through consistent updates and new game releases.
   

Game Consoles Market Companies

Major players operating in the game consoles industry are:

• ASUS
• Ayaneo
• Logitech
• Microsoft
• Nintendo
• Razer
• Sega
• SNK Corporation
• Sony
• Valve Corporation
   

Game Consoles Industry News

• In November 2024 Sony released PlayStation 5 Pro with enhanced ray tracing and AI driven upscaling for better gaming and graphic performance.
   
• In January 2024, Microsoft entered into a partnership with Ubisoft for including Ubisoft+ in the Xbox Game Pass which increased the number of games available on the subscription service.
   
• In October 2023, Valve released Steam Deck OLED, an upgraded handheld gaming console that has improved visuals and battery compared to the previous model.
   

The game consoles market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion)(Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Type, 2021 - 2032

• Home console
• Handheld console
• Hybrid console 

Market, By Application, 2021 - 2032

• Online gaming
• Offline gaming

Market, By End Use, 2021 - 2032

• Residential
• Commercial

Market, By Generation, 2021 - 2032

• Current
• Previous
• Legacy

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa