2023-08-19 16:27:23
Virtual goods, like weapons in Fortnite and subscription services like Microsoft Game Pass, have become as important to the console industry as traditional cash-generating merchandise from high-priced indie games, marking a turning point for the $60 billion business. Console gamers are set to spend $21 billion on in-game items and subscription services this year — roughly the same amount they spend on game downloads and discs, according to research group Amber Analysys. Those expenses have risen sharply since the free-to-play Fortnite debuted in 2017. Players spent three times as much on console software that year than they did on subscriptions and virtual items. Cost-of-living pressures are deterring consumers from paying up to $70 for a game they may not like and encouraging them to choose alternatives, such as Fortnite and Apex Legends, which It can be downloaded for free. Players are then urged to spend their pounds and dollars — or virtual currencies developed for specific games, such as V-Bucks ($5) in Fortnite — on in-game clothing and weapons. They can also pay to access new levels, stories, and multiplayer arenas. A small minority of gamers usually account for the majority of free-to-play video game revenue. So-called online services are expected to be a “strong windfall” for publishers, according to Andrew Wilson, CEO of Electronic Arts. Worldwide revenue from 1.3 console games is set to rise percent to $42 billion this year, recovering from the 2022 decline, according to AMP. The total market, including hardware, is expected to expand by about 5 percent to $61.5 billion. Despite the opportunity, the changing tastes of gamers add complexity for console makers, developers and publishers. The shift presents a particular challenge for Sony, which relies more than its competitors on exclusive premium games found on its PlayStation 5 console. “Live service games absorb all the interaction” between players, said Pierce Harding-Rolls, head of game research at AMP. . “That makes it a different and tougher environment [لناشري الألعاب ومطوريها] He compares the enduring appeal of games such as Fortnite – which remains the most popular console game in the world by monthly active users – with blockbusters such as Hogwarts Legacy. billion dollars in the first three months, but player interest waned soon after, according to Amp’s tracking data. Fortnite Brings the Console Market Closer to Mobile Games Mobile versions have long been dominated by free apps, with optional purchases for extra lives, cosmetic improvements to the avatar or power-ups.Traditional console publishers including Activision Blizzard and Tech Inc. rushed -Two Interactive and IA are reinventing themselves for this new era, turning series like Call of Duty and Grand Theft Auto into straight-forward games that will keep buyers playing – and spending money – for years. Gamers continue to flock to GTA V a decade after its release for the first time, thanks to a steady stream of new content and add-ons from its developer, Rockstar. From content to Xbox Game Pass subscription service. Like other subscription game services, including Ubisoft Plus and EA Play, Game Pass gives players unlimited access to a range of games for a fixed monthly fee. Sony has its own subscription service, PlayStation Plus, but it relies more on premium games exclusive. If gamers continue to be drawn to free-to-play games like Fortnite that don’t require the latest hardware, Sony will have a harder time selling its PS5 to all but the most dedicated gamers, some analysts have argued. The company is converting more PS5 units than its predecessor, the PS4, which sold 100 million units in six years. Sony has finally started discounting in several markets the $499 price of its console. “The world has outgrown Sony’s console model,” said Gareth Sutcliffe of Enders Analytics, adding that the PlayStation maker has “held tight.” high cost model for hardware and content. High development costs have caused prices for premium games, such as Final Fantasy 16 and Nintendo’s latest Legend of Zelda, to run up to $70 upfront. For Sony, some of that investment can be recouped by paying Its own TV and movie studios: The latest successful series The Last of Us started out as a PlayStation game. Large new game launches continue to help the console market return to growth. Spurred by the improved availability of PS5 consoles, which were halted by severe supply shortages until late Last year, strong sales of the Nintendo Switch, revenue from US game consoles rose 23 percent to $2.6 billion in the first half of the year compared to the same period last year, according to market research firm Circana. As of late July, Sony had sold 40 million units. console from the PS5, according to the company. However, the console has lost momentum in recent months as gamers grapple with the rising cost of living, with Sony chief operating officer Hiroki Totoki saying this month that PS5 sales showed “to an extent Less than expected progress” toward the group’s target of selling 25 million units in the current fiscal year, despite achieving 38 percent year-on-year growth in the first quarter. “Accelerated penetration of PS5 hardware” was “one of the company’s top priorities,” Totoki said. In the short term, its strategy of promotions and discounts in many markets is showing signs of success. In the UK, PS5 unit sales volumes were up 73 percent in the first 31 weeks of this year compared to the same period in 2022, according to market research firm GfK. However, the run-up to Christmas will be important. While streaming content — including a PlayStation exclusive to Spider-Man 2 — appears strong, and while Totoki said he expects the industry to be “very active,” Harding-Rolls said paid releases around the industry need to be convincing to lure gamers away. About the likes of Fortnite. “There is a completely new dynamic to the market,” he added.
1692467019
#Changing #gamer #tastes #complicate #console #makers #calculations