There is currently an excess of gaming monitors in the market, which means it will take some time for inventories to return to normal but that’s just slowing down growth, not killing it. Gaming monitors remain the one bright spot of growth in the gaming PC market, perhaps the only one. We are probably seeing the beginning of an upgrade cycle, even during this downturn, as displays catch up to the power of the aftermarket GPUs that have been driving gamers who expect better, bigger graphics performance to match their graphics cards. Gaming is still the best driver of high-end PC and monitor sales, and it’s a safe haven for manufacturers looking to find niches for best of class products.
Gamers also tend to be the most active in pursuing must-have products meaning that there is a sort of herd mentality that drives buying patterns. They are highly social, want bragging rights, and are probably the users who spend the most time in front of a screen, often more than is healthy. If you ever had a teenager locked in a team battle in Fortnite, you would know that empirically. Samsung, Asus, Alienware, Corsair, and Innocn are just a few of the companies that have been rapidly launching products into this market. LG just announced the availability of its 49-inch curved gaming monitor.
You can do the math: a legitimate gaming PC rig, without the monitor doesn’t start below $3,000 when you take into consideration keyboards and input devices. Most purchasers opt for an entry-level monitor, but still one that is significant in terms of performance, often settling on a 27-inch in the $400–$800 range. But, give it about a year, and those gamers are ready to upgrade their display, and will make room for a larger, more power display. At this point, they can start to budget from $800 to $1500. Add that into the equation for many gamers, the display they use for gaming is also the same one they may be using to do a watch party with their friends to watch a movie or sporting event, and the demand for a better display starts to become an intolerable urge. The only proviso is that the gamer is going to be researching the crap out of displays, and is going to test any purchase exhaustively. They should be every display manufacturer’s best friend. Now try finding a consumer who has the same budget and timelines for a TV, any TV, in that price range, and has anywhere near the same level of devotion or attention to detail. There’s no comparison.
Gaming PC and Monitors by the Numbers
In general, global shipments of gaming PCs and monitors experienced a decline in 2022, marking the end of a three-year growth streak, according to the International Data Corporation (IDC) Worldwide Quarterly Gaming Tracker. The report revealed a 6.4% drop in gaming PC shipments and a 7.1% decline in gaming monitor shipments compared to 2021. However, these figures were still higher than pre-pandemic levels in 2019.
There is an oversupply of gaming PCs in the market, which has caused discounts on older models and made it difficult for newer models to sell. Additionally, the secondary GPU market has extended the lifespan of existing gaming desktops, reducing the demand for newer models.
The high power requirements of the latest GPUs are negatively impacting the growth of new gaming desktops and notebooks because last year’s models offer better value for money. Additionally, the rise of mobile and handheld gaming is affecting how much gamers are willing to spend on gaming PCs.
Despite the short-term negativity, the gaming PC and monitor markets are expected to outperform the overall PC and monitor markets. IDC predicts a year of recovery for the gaming industry in 2024, as 2023 is expected to be fraught with macroeconomic challenges, inventory issues, and a lack of meaningful upgrades. The total volume of gaming products is expected to grow from 58.8 million in 2023 to 75.1 million in 2027.
