Is console gaming on the decline?

With a growing mobile games market and the steady increase of free-to-play games on PC, some may be worried that console gaming is on the decline. Gaming consoles are the bread and butter of the industry and where many started their experience – controller in hand.

Game consoles received a lot of hype when they were first announced, with queues around the block for the latest model from PlayStation, Nintendo or Xbox. These days, a new console release is added to an Amazon wish list and purchased without much furore. Perhaps this is because there have been so many since the 70s that they don’t feel all that revolutionary anymore, or perhaps it’s because we’re so used to instantly gaining access to tech.

Atari, Nintendo’s NES and GameCube models and the PS1 were all childhood favourites for many, as we recall spending hours attempting to beat platform levels and remember our saved game codes. WoW and the Sims were the main PC games played until online gaming truly took hold, with titles such as Dota 2 and Starcraft entering the market. Jump forward to 2018 and many of us are gaming here there and everywhere via our smart phones, tablets and laptops.

Today’s multi-platform gaming landscape

The gaming industry itself is only set to grow, with the global market predicted to hit $180.1 billion in revenues by 2021.

With these figures, it can be hard to understand where consoles come into all of this and why they’re not doing as well as they once did. However, when big name gaming giants, such as Playstation, witness steady declines in their sales YOY you may start to believe they’re on the way out. But it’s not as simple as this.

The current generation of console gamers – essentially millennials – haven’t grown up with a phone in hand and access to free games since they could walk and talk. Instead, they still share a love for traditional gameplay and continue to play on consoles they purchased when they were first released.

In fact, game sales jumped from 218 million to 247 million on the PS4 this fiscal year and downloads are up by 27%. It’s safe to say that consoles are definitely still being played.  

The bigger picture: the impact of smartphones

So where has the concern around consoles stemmed from? Many are claiming the hardware is on the decline due to the growing app market and PC gaming platforms such as Steam. Laptops and desktop PCs are also more powerful, and for less money now, so people can play the titles they love away from the console. However, it’s worth noting that PC gaming makes up a relatively similar amount to console - $32.9 billion in revenue with boxed or downloaded games making up $28.6 billion of that overall amount.

When it comes to mobile gaming and smartphones, higher-quality visuals and audio, along with larger screens than ever before, mean that people no longer need to hook up to a TV with a console to enjoy stunning and immersive gameplay. The Telltale games and even Fortnite can be enjoyed on your smartphone, while Candy Crush style titles now have relatively impressive visuals and cut scenes.

Mobile gaming revenues are expected to grow 25.5 percent this year and account for over half (51%) of the global market share. Smartphone games attribute to 29% of this – estimated to be worth $56.4 billion in revenue.

Developers of popular titles such as Fallout are even dipping their toe in the world of smartphone based gaming, Bethesda’s Fallout Shelter app was a popular supporting game to the main console and PC based title when it was released and continues to bring in players.

Smartphones make everyone a gamer – even if it’s something as ‘basic’ as Tetris. The platform allows more people to play games than ever, dominating the market but not necessarily taking away the overall popularity of console gaming.  

Mobile consoles: the best of both worlds?

In fact, the introduction of the Nintendo Switch has shaken up the console industry. You can play your favourite Nintendo titles on your TV but you also have the option of going mobile and taking the console with you. It’s made gaming on a console a little more social again and also a little more acceptable for the masses, as the Switch is the main focus of parties and get-togethers.

For those concerned about the console industry, Nintendo’s latest release may actually be the saviour we needed and the company has recently released Nintendo Online to push its reach further.

The online gambling sector is another competitor to the traditional games console. After encroaching on the territory of bricks-and-mortar casinos and betting shops, online slot games and bingo now account for a huge portion of the gaming industry.

The popularity of online gambling

In 2016, the Gambling Commission industry statistics noted that gambling operators generated £4.5 billion in Gross Gambling Yield. £2.6 billion of this came from online casino games and £153 million from bingo. This is because access to online gambling has essentially made gaming more accessible.

You can play live casino, card games and online slots from the comfort of your own sofa – all you need is a device, internet connection and a bank card. When it comes to leading titles, virtual slot games are a popular choice for many.

Rose Slots is one online gambling operator that’s enjoyed huge success in its market – offering games covering a wide range of niches, including movies, music and more. Check out its range of online slots and you’ll see it caters for an older female demographic – a refreshing identity that helps it achieve valuable stand-out in a competitive market dominated by male-oriented operators.

How console game developers are fighting back

The gaming industry has come a long way since we fired up our console as kids and it’s to be expected that the market will adapt to reflect this. Technology and the Internet have definitely had an impact, as well as how we navigate the world. However, console developers and brands are firing back with attempts to boost revenue and interest.

Exclusive titles are a great way of boosting console revenue. Sony is particularly good at this, its God of War and Spider-Man titles in 2018 both topped the charts and perhaps even encouraged some to purchase a console just for the sole purpose of playing these games.

Microsoft tried the same thing with Tomb Raider, taking exclusive rights of the first title’s release back in 2013. Interestingly, this year, sales for the latest Tomb Raider game on PS4 outperformed Microsoft by 25% - showing that Sony’s console is a perhaps more popular choice because of the games it has to offer more than anything else.

Console gaming may have dipped in recent years; however, this doesn’t mean it’s on the way out. Instead, developers will be adapting their offering to keep up with the online world. There is definitely still a big place for consoles in the world of gaming and as tech advances we could see those overall revenue figures for the likes of PS4 and Xbox rise again.