Gaming Console Market Sees Growth in 2023 with Sony Overtaking Nintendo

If you are thinking about gaming on a big screen TV, you have to start with consoles. According to Counterpoint, the global gaming console market experienced a 10% year-over-year growth in 2023, attributed to easing supply chain issues, increased consumer demand, and new product releases from industry giants like Nintendo and Sony. Sony claimed the top spot in the market, surpassing Nintendo, largely due to the success of its PlayStation 5 (PS5) console.

Source: Counterpoint

In 2024, hardware revenue is expected to decline, despite Microsoft’s planned updates to its Xbox Series with new models featuring WiFi 6E, expected in the latter half of the year. Nintendo has postponed the launch of the successor to the Switch console to early 2025, which may affect its market share. Sony, riding high on the PS5’s success, is anticipated to maintain its market leadership against this backdrop of delayed competition.

Software and service offerings are becoming the primary revenue drivers in the gaming console sector, as evidenced in 2023, where they accounted for over 70% of Sony’s and Microsoft’s gaming revenues. Microsoft’s acquisition of Activision Blizzard expanded its gaming suite with hit franchises, while Sony benefitted from the successful launches of Marvel’s Spider-Man 2 and other titles.