The gaming industry has experienced numerous transformations over the years, showing a unique ability to adapt and evolve. The resurgence of personal computers (PCs) as a focal point in the gaming sector illustrates one of these significant shifts. Through the lens of recent market developments, it becomes evident that the gaming landscape is entering a phase characterized by cross-platform functionality, driving innovations across multiple devices. The expectations surrounding this dynamic further underscore that gaming is no longer strictly classified into rigid categories such as consoles or mobile platforms; instead, a more nuanced analysis of market trends is needed.
Recent statistics from 2023 verify the growing trend of cross-platform gaming. The revenue from multi-platform products on PCs reached approximately 3.385 billion yuan, reflecting an astonishing tenfold increase over the last five years. In addition, 84 PC cross-platform approvals were granted in 2023, representing a remarkable 282% increase from the previous year. Such numbers suggest that gamers are increasingly inclined to embrace the flexibility offered by multi-platform experiences.
This year's highlight has certainly been the unprecedented enthusiasm surrounding games like "Black Myth: Wukong," which has catalyzed increased PC hardware sales. According to Lu Master’s Q3 2024 PC report, the spike in the install base resulting from "Black Myth" makes a compelling case for the strengthening presence of PC gaming. Following this, "Delta Action” also debuted on multiple platforms, further illustrating the broadened horizons of cross-platform capabilities that continue to fuel gamers' imaginations.
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However, while there is a growing focus on the domestic market in China, one must acknowledge the global nature of this evolving trend. The upcoming era of international gaming market expansion necessitates a synergistic relationship between PC and mobile gaming. Collaboration between these sectors offers an expansive playing field that brands can leverage for greater visibility and growth in foreign markets.
Insights from Newzoo's recent forecasts indicate that the global gaming market is expected to reach a staggering $187.7 billion in 2024, marking a 2.1% increase year-over-year. Among the various segments of this market, the PC sector is predicted to emerge as a prominent growth engine, projected to achieve a size of $43.2 billion and account for 23% of the entire gaming market. For mobile games, anticipated revenues are approximately $92.6 billion, while console gaming is expected to see a slight dip, down to $51.9 billion.
Furthermore, the global gamer population is set to grow to 3.42 billion in the coming year, signifying a 4.5% increase from earlier figures. Notably, PC gaming enthusiasts are expected to rise by 3.9%, surpassing the 900 million mark. This starkly contrasts with the relatively slower growth of console gamers by just 2.9%, while mobile gamer numbers are estimated to swell by 3.5%, reaching 2.85 billion. Such data renders it clear that the PC gaming demographic is continuously on the rise, further demonstrating its revitalization.
Steam, a leading PC gaming platform, has seen unprecedented user growth over the past year. According to VGI's report, Steam’s complete game sales in August reached an impressive $1.44 billion (10.2 billion yuan), which marks a whopping 62% increase year-on-year. Both the number of new game releases—totally 1,697 in August alone—and the peak concurrent user count, which hit 37.3 million, up 25% from the previous year, exemplify this trend. Early October brought even more impressive figures, with online user counts exceeding 38 million, compared to 30 million a year earlier.
In terms of hardware sales, Canalys’s latest report reinforces the trend line, recording continual growth for the global PC market for four consecutive quarters from the previous year. The shipment of desktops, laptops, and workstations collectively reached 66.4 million units in Q3 2024, which is a 1.3% increase when contrasted with the same period last year. Furthermore, Jon Peddie Research's predictions present an optimistic outlook for the PC gaming hardware market, anticipating a historic milestone surpassing $30 billion.
This multitude of data showcases the burgeoning opportunities within the PC gaming market, a burgeoning frontier that will significantly influence the trajectory of Chinese game developers striving for successful overseas ventures. Traditional reliance on mobile-only strategies must now seek to integrate PC capabilities to unlock new avenues for growth.
The pathways to growth in the domestic gaming market significantly differ from those observed internationally. As previously outlined in value discussions surrounding gaming, a large-scale transformation has matured within mobile gaming over the past decade. This maturation encompasses an evolution in gaming aesthetics, along with a transition from casual to core user bases. Consequently, there is a pronounced demand for higher hardware capabilities and enhanced gaming experiences.
With the intensification of mobile gaming and its progressive upgrade, game developers have actively encouraged use of mobile emulators on PC devices, specifically for games emphasizing dynamic action, expansive worlds, and backend idle mechanics. This strategic promotion further immerses players within a PC gaming environment that grants enriched gameplay experiences.
Moreover, in terms of production costs, the financial landscape has shifted substantially. The historically low barrier of entry within mobile game development has dwindled, and the notion of merely choosing between mobile or cross-platform gaming no longer suffices. The evolution within the domestic market and the shifts witnessed within user experiences have steered many developers towards enhancing both mobile and PC game offerings, entrenching user developments along the way.
While the domestic scenario primarily reflects a transition from mobile to PC, the international context sees an increase in users migrating from console platforms to PC gaming. A prime example includes Japan, which just a decade ago was labeled as a "PC desert" in terms of gaming.
According to the 2024 Japan Game White Paper published by FAMI通, revenue from Japanese PC game software skyrocketed from 189.2 billion yen in 2022 to 236.4 billion yen last year, representing a staggering growth rate of 24.9%. The Japanese PC gaming market has exhibited four consecutive years of robust growth, with estimates indicating a nearly threefold increase between 2019 and 2023. Data from the Computer Entertainment Supplier's Association (CESA) supports this narrative, revealing an expansion of Japan’s PC gaming market from approximately 82.2 billion yen in 2019 to a now impressive 236.4 billion yen in 2023.
One key driver of this growth is the increasing popularity of PC gaming among younger audiences, who are gradually shifting from consoles to PCs. Although systems such as PlayStation 5 and Nintendo Switch retain formidable market shares, the contribution from PC gaming to Japan’s overall gaming revenue has risen from a mere 5% in 2019 to an impressive 13% in 2023.
Further analysis reveals a reciprocal relationship between PC and console gaming—a fact that Newzoo's report clearly outlines. One illustrative instance is the game "Valorant," developed by a prominent Western studio, which achieved a monthly active user count of 35 million on PC before expanding to consoles and subsequently exploring mobile adaptations.
Nonetheless, at the core of this phenomenon, irrespective of geographical bounds, is the omnipresent influence of product offerings. Users evolve, opting for platforms that provide superior gaming experiences, ultimately gravitating towards PC as their preferred medium.
The rise of PC gaming among domestic developers is not merely coincidental; it is an expected development stemming from the apparent gap in China's outbound gaming market. Over the past few years, the Chinese gaming industry's international penetration has slowed and encountered challenges. In 2023, actual overseas sales of Chinese-developed games measured at $16.366 billion, reflecting a 5.65% drop year-on-year, emphasizing pressures on game developers as they navigate their outbound ventures.
In comparison, statistics indicate a slight uptick in the latter half of 2024, with July revenues rising to $1.586 billion—growing 5.3% year-on-year—with August witnessing even more remarkable figures after the launch of the title “Black Monkey.” This title outperformed prior projections with revenues climbing to $1.88 billion for the month.
Additionally, within Steam's top ten most anticipated games for August, five titles emerged from Chinese firms or their overseas subsidiaries, illustrating the strengthening influence of local developers entering the global gaming landscape. Titles such as "Delta Action" developed in collaboration between Tencent's TiMi Studios and Dreamland Creative, alongside "Limitless Machine" from Xishanju, exemplify this success.
After Tencent’s mid-year report, its high-profile executives, including Ren Yuxin (COO), Ma Xiaoyi (SVP), and Tang Yibin (VP), convened an insightful meeting addressing the Interactive Entertainment Group (IEG). They emphasized how the last two years have seen an increasing focus on cross-platform projects, cultivating fresh perceptions regarding the value of the PC market among staff.
In response to this trend, Ma Xiaoyi remarked, "The PC market has shown a significant revival in recent years, emerging as an increasingly consequential sector, and it is where growth within the gaming industry lies." Leading developers, through these concerted efforts, exhibit an unwavering determination regarding the significance of the PC gaming segment and the essential role it plays in global enterprises. The forthcoming integration between PC games and mobile titles will profoundly influence the evolution of Chinese gaming on the international stage.