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May 2025
The game consoles market accounted for USD 28.89 billion in 2024 and is expected to reach around USD 65.61 billion by 2034, with a CAGR of 8.55% from 2025 to 2034. The demand for game consoles is increasing due to the growth in social gaming, which allows users to connect socially.
Game consoles refer to a specialized computer device primarily used for playing video games. The device connects with a television or a monitor that allows the users to interact with the games. The game consoles market has been expanding rapidly due to the rising popularity of games as an option for entertainment. The industry has been making significant advancements in game controllers like buttons, sensors, joysticks and many more. This is helping in providing multiple options to the gamers where they can play multiple online and offline games.
Strong branding from companies like Sony (PlayStation), Nintendo and Microsoft (Xbox) has managed to play a crucial role in attracting a significant consumer base for gaming consoles. These brands have managed to establish their reputation in the gaming industry, which has helped them to maintain the loyalty of consumers. The consumer base is expanding rapidly due to the emotional connection made from these brands, which helps in engaging the consumers from the Millennial and Gen Z generations.
| Report Attributes | Details |
| Market Size in 2025 | USD 31.35 Billion |
| Expected Size in 2034 | USD 65.61 Billion |
| Growth Rate | CAGR of 8.55% |
| Base Year in Estimation | 2024 |
| Forecast Period | 2025-2034 |
| Dominant Region | North America |
| Segment Covered | By Type, By Application, By End User, By Region |
| Key Companies Profiled | Sony, Microsoft, ASUS, Ayaneo, Logitech, Nintendo, Razer, Valve Corporation, Sega, SNK Corporation |
Emergence of AR and VR as a Future Opportunity
The rapid integration of technologies like Augmented Reality (AR) and Virtual Reality (VR) is playing an influential role in attracting a wider consumer base in the gaming industry. The game consoles market is anticipated to expand rapidly due to the emergence of these technologies, which are providing a 360-degree environment for the users which goes beyond traditional gaming. Companies are heavily investing in hardware advancements, which helps in better monitoring that enhances the overall gaming experience. The rising fitness trend is also anticipated to help in the market growth due to the use of VR in fitness games that provide real real-time sports experience. The use of technology-integrated devices is also increasing heavily for other purposes like education and training, which will raise their sales for multipurpose use in the upcoming years.
The gaming industry has been witnessing significant growth in recent years, but there are still some concerns that tend to hamper the demand for consoles. The rising trade tariffs between countries are expected to play a restraining role in the game consoles market due to the increasing prices of these products. Additionally, the developing countries may face certain challenges due to lower currency value, which will make these products more unaffordable to the individuals.
North America dominated the global game consoles market by generating the largest revenue share in 2024. The dominance of the segment is attributed to the strong gaming culture in countries like the United States and Canada. The individuals in the region also have higher spending on these option for entertainment purposes. Additionally, the advanced internet and technological infrastructure also stand as major players in the region, which has significantly helped in establishing subscription services.
The United States stands as a dominant country in the North American market due to the presence of manufacturing bases of companies like Sony PlayStation, Microsoft Xbox and Nintendo. These companies have invested heavily in the region due to the higher influence of gaming culture. Additionally, the stronger presence of platforms like YouTube has also helped in generating employment in the country. The game consoles market is expected to gain more popularity due to the rising esports influence in the country.
Asia Pacific is anticipated to emerge at the fastest CAGR during the forecast period of 2025 to 2034. The growth of the region is attributed to the rising popularity of online gaming in countries like Japan, China and India. The urban population are mostly expected to play an influential role in the market growth.
The rising disposable incomes of this population are also attracting several investments from companies, which are aiming to establish a manufacturing base in the region. The government support is also increasing in these countries, which is expected to help the market grow more effectively.
China is one of the opportunistic regions in the Asian market due to the rising gaming population in the country, which will help in boosting the sales of gaming consoles. The game consoles market is anticipated to rise rapidly as the government is boosting the online gaming infrastructure by easing the restrictions for foreign companies. As a result, many companies like Xbox and PlayStation are increasing their investments in the region, which will help in generating more revenue through the market.
The handheld consoles segment accounted for the largest revenue share in 2024. These consoles are portable gaming devices which can be used physically and with digital downloads. The game consoles market has been marking significant demand due to the higher popularity of convenient consoles, which are easy to carry and can be used on multiple occasions. The wider popularity of these consoles is also attributed to their lower costs, which helps in attracting several consumers. The rising gaming trend has been a major contributor to the higher demand for these consoles, which target the population from Japan and South Korea who have a higher demand for mobile gaming.
The home console segment is anticipated to rise at the fastest CAGR during the forecast period of 2025 to 2034. These consoles are high-end gaming devices which can be used through a connection from a television or a monitor. The rising advancements have enabled high graphics and multiplayer gaming capabilities, which are attracting significant revenue in the game consoles market. The technological advancements, like the rise of Augmented Reality (AR) and Virtual Reality (VR), are playing an influential role and are anticipated to attract a significant consumer base in the future. The governments are also recognizing advanced gaming as it is helping them in boosting their economy.
The online gaming segment registered the largest revenue share in 2024. The dominance of the segment is attributed to the higher internet penetration in countries with a higher gaming culture influence. The game consoles market has managed to mark significant revenue in recent years due to the constant innovation in multiplayer games like FIFA online, Fortnite and many more. The gaming companies are also investing heavily in maintaining the quality of the game through constant updates, which cover the errors and bugs in the game. Online gaming is getting more popular due to the rising social connectivity, which enables significant opportunities in the gaming industry. The growing worldwide popularity of esports and competitive gaming is anticipated to boost the revenue flow in the future.
The offline segment is anticipated to grow at a steady CAGR during the forecast period of 2025 to 2034. The majority of the audience for offline gaming is drawn from developing countries due to the unavailability of high-speed internet connections. The game consoles market is expected to maintain its growth due to the increasing innovation in storytelling games like God of War, The Legend of Zelda, and others are gaining popularity due to the availability of single-player gaming options. Many other games are also being offered in offline modes, which helps in engaging the consumer effectively.
The residential segment marked its dominance by generating the largest revenue share in 2024. The dominance of the segment is attributed to the higher gaming popularity in these settings, which is preferred as an entertainment option for the younger population. The companies have managed to engage the consumers by offering multiple affordable gaming console options which can be used in multiple settings. The game consoles market is growing rapidly due to the rise of e-commerce platforms like Amazon and Flipkart, which are offering these consoles at affordable prices to consumers. The rising disposable incomes in middle-class families are anticipated to generate more demand for consoles in these settings.
The commercial segment is anticipated to grow at the fastest CAGR during the forecast period of 2025 to 2034. The growth of commercial gaming setups has been significantly high in countries like Brazil, India, and other South Asian countries. These regions are gaining significant demand for online and offline games, but the lower disposable incomes act as a financial barrier. Many gaming cafes provide hourly gaming services at affordable prices, which keeps the consumer engagement higher in these regions.
Product Launch- In April 2025, Nintendo announced the pre-order availability of the Nintendo Switch 2, priced at $449.99, featuring enhanced Joy-Con 2 controllers, a 7.9-inch HD screen, powerful processing capabilities, and GameChat for social gaming,
In June 2024, Microsoft announced refreshed versions of the Xbox Series X and Series S, featuring enhanced storage options and updated designs, including a disc-less white Xbox Series X and a 2TB "Galaxy Black" Series X special edition.
In March 2025, ASUS began developing their first handheld Xbox gaming console, codenamed Project Kennan, in collaboration with Microsoft to unify console and PC gaming experiences
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