PC and Console Gaming Predictions with Newzoo's Tom Wijman
The episode discusses market predictions in the gaming industry, challenges and opportunities in the gaming market, shifts in gaming platforms and business models, and the future of gaming platforms and AI in game development. The gaming market is predicted to continue recovering and growing, but at a slower rate than previous years. Console gaming has been impacted by premium releases, leading to a decline in hours played and slower growth in subscription services. The console market faces challenges from social media, video streaming, and other forms of entertainment. PC gaming has performed better than expected, with opportunities for growth and successful porting of console games. The gaming market has shifted from an engagement and spending boom to facing inflation, high interest rates, layoffs, and careful investment environments. Mobile games are not recession-proof, as a decrease in disposable income leads to a decrease in in-app purchases. PC and console gaming are considered more recession-proof due to the premium nature of games. Layoffs in the gaming industry are expected to continue, making it difficult for laid-off developers to start something new. Multi-game subscription services like Xbox Game Pass rely on subscriber growth for cost efficiency. The popularity of multi-game subscriptions is slowing down, and there may be competition from gaming platforms like Fortnite and Roblox. Gaming platforms like Fortnite and Roblox offer diverse experiences in a freemium model, potentially disrupting traditional game subscription services. Premium games require a good marketing campaign and strategy, while live service models require continuous content updates. The console market is saturating in terms of live service games, making it harder for new entrants to succeed. There may be a shift in mindset from focusing solely on live service models to considering premium games again. Acquiring small games with potential and providing proper support could be a profitable business model. Mobile developers turning to PC gaming may face challenges due to differences in marketing, engagement, and monetization mechanics. Cross-platform games have the potential for great success, and developers who approach new platforms with humility are more likely to succeed. Xbox plans to launch a mobile store on Android, potentially benefiting from strong franchises owned by Microsoft. AI is expected to accelerate game development, but its successful usage is currently limited. The use of AI in game development unlocks potential for smaller teams to be successful and try new things at a larger scale.