European Console Market Slowdown in 2024
The European video game console market experienced a significant downturn in 2024, primarily attributed to market saturation and a dearth of new releases from major players. 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 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 slump 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, further evidenced by the Meta Quest 3S outselling all major consoles in the US market during 2024.
Shifting Sales Landscape: Digital Dominates
While console sales faltered, the overall European gaming market experienced a modest 1% growth in 2024, reaching 188.1 million units sold (PC and console combined). This growth, however, masks a significant shift in purchasing habits. Digital game sales surged by 15% to 131.6 million units, while physical sales plummeted by 22%, reaching only 56.5 million units. This clearly indicates a growing preference for digital distribution.
Outlook for 2025
The gaming industry anticipates a more robust 2025, particularly with the anticipated release of the Nintendo Switch 2. However, it's crucial to note that the reported sales figures exclude several major European markets, including the UK, Germany, the Netherlands, and Austria. The inclusion of these markets could potentially alter the overall picture for 2024.
