Video Game Console Hardware Sales Are Way Down in One Region

Summary

• Major European gaming console sales slumped in 2024, attributed to market saturation and a dearth of new releases.
• The PlayStation 5 Pro, the only significant new console launch from major manufacturers, failed to reverse the overall sales decline.
• While overall European gaming sales saw a modest 1% increase in 2024, this growth was driven by a surge in digital sales, offsetting a significant drop in physical game sales.

2024 proved a challenging year for video game console sales across major European markets, impacting leading platforms like the Switch, Xbox, and PlayStation. While the overall market experienced a downturn in new console sales, the gaming industry wasn't entirely without positive indicators.

The only new console released in 2024 by a major manufacturer was the PlayStation 5 Pro, an iterative upgrade to an existing system. Despite anticipation surrounding the enhanced Sony console, it proved insufficient to counter the broader decline in European console sales.

A Video Games Chronicle report revealed a significant 21% year-on-year drop in European console sales for the PS5, Xbox Series X/S, and Nintendo Switch. PlayStation, despite the PS5 Pro launch, still saw a 20% sales decrease compared to 2023. The Nintendo Switch experienced a 15% decline, while Xbox Series X/S sales plummeted by a staggering 48%. This downturn is largely attributed to market stagnation, with the original PS5 and Xbox Series consoles launching in 2020 and the Nintendo Switch in 2017. Further highlighting this trend, Amazon US data shows the Meta Quest 3S outsold all major gaming consoles in 2024, suggesting widespread console sales stagnation across various territories.

Video Game Sales Shift and Growth Stagnates

Overall European gaming sales in 2024 reached 188.1 million units (PC and console), representing a meager 1% increase compared to 2023. While positive, this growth is likely below industry expectations. The data also reveals a significant shift in consumer purchasing habits, with digital game sales surging 15% to 131.6 million units, while physical game sales plummeted 22% to 56.5 million units.

The outlook for 2025 appears more promising, with the anticipated launch of the Nintendo Switch 2 expected to stimulate significant sales. However, it's crucial to note that the reported console sales figures exclude several major European markets, including the UK, Germany, the Netherlands, and Austria. Inclusion of these markets might present a more nuanced picture of 2024's performance.

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