Gaming Hardware Slump Hits Regional Market

European Console Market Sees Significant Dip in 2024

The European video game console market experienced a downturn in 2024, marked by declining sales across major platforms. Market saturation and a shortage of significant new releases contributed to this slump. While the PlayStation 5 Pro, a refreshed version of the existing PS5, launched during the year, it proved insufficient to offset the overall decline.

This slowdown affected all major players. A report from Video Games Chronicle revealed a substantial 21% drop in overall console sales compared to 2023. Even PlayStation, which performed relatively better thanks to the PS5 Pro, still saw a 20% decrease. The Nintendo Switch suffered a 15% decline, while Xbox Series X/S sales plummeted by a staggering 48%. This downturn is attributed to market stagnation, with the current generation of consoles having been on the market for several years. The success of the Meta Quest 3S in the US, outselling all major consoles, further underscores the potential for market saturation in various regions.

Shifting Sales Trends: Digital Dominates

Despite the console market downturn, the overall European gaming market saw a modest 1% increase in 2024, reaching 188.1 million units sold (PC and console combined). However, this growth masks a significant shift in purchasing habits. Digital game sales surged by 15% to 131.6 million units, while physical sales plummeted by 22% to 56.5 million units. This clearly indicates a growing preference for digital distribution.

Looking Ahead to 2025

The gaming industry anticipates a more robust 2025, largely driven by the anticipated launch of the Nintendo Switch 2. However, it's important to note 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.

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