European Console Market Experiences Significant Dip in 2024
The European video game console market experienced a substantial downturn in 2024, primarily attributed to market saturation and a dearth of new major console releases. Despite the launch of the PlayStation 5 Pro – the only new console from a major manufacturer – overall console sales plummeted by 21% compared to 2023.
Individual console performance reflected this trend. While the PlayStation 5, bolstered by the PS5 Pro's release, fared relatively better with a 20% sales decrease, the Nintendo Switch saw a 15% decline, and the Xbox Series X/S suffered a dramatic 48% drop. This downturn is largely attributed to the age of current-generation consoles; the original PS5 and Xbox Series consoles launched in 2020, and the Nintendo Switch debuted in 2017. The market appears to be reaching a saturation point, with evidence from the US market suggesting a shift in consumer preference, as the Meta Quest 3S outsold all major gaming consoles on Amazon in 2024.
A Shift in Gaming Consumption
While console sales faltered, the overall European gaming market showed a modest 1% increase in 2024, reaching 188.1 million units sold (PC and console combined). This growth, however, masks a significant shift in how games are acquired. Digital game sales surged by 15%, reaching 131.6 million units, while physical sales plummeted by 22%, totaling only 56.5 million units. This clearly indicates a growing preference for digital distribution.
Looking Ahead to 2025
The outlook for 2025 is more optimistic, with the anticipated release of the Nintendo Switch 2 expected to revitalize the market. However, it's crucial to acknowledge that the reported sales figures exclude several major European markets, including the UK, Germany, the Netherlands, and Austria. Inclusion of these markets could potentially alter the overall picture for 2024.
