Console Players Aren’t Buying Games Anymore

Overview

This document summarizes a video walkthrough of Matthew Ball’s 2025 “State of Video Gaming” report, highlighting why console players are buying fewer boxed/paid games. It links industry-wide data (sales, play hours, layoffs, profits) to broader trends: the rise of services/subscriptions, Roblox’s explosive growth, the dominance of free‑to‑play, and margin pressure forcing studios to rethink pricing, scope, and production.

Key data & takeaways

Layoffs and profits

• 2025 saw approximately 9,200 layoffs; the four‑year total is about 44,000. 2024 was worse (≈15,650 layoffs).
• Operating profits have declined since 2009 despite consumer spend rising ~40% (≈$56B), indicating margin erosion.

Spending shifts

• Since 2020, roughly 119% of net spending growth went to platform services (subscriptions) rather than game sales.
• Total spending on game sales/transactions is down ≈ $3.7B per year (≈11%).

Platform trends

• Roblox is massive: hours of engagement are approaching Netflix levels and surpass many other gaming ecosystems.
• PC content sales grew ~30% since 2020 (≈$9.4B), far outpacing console dollar growth.
• Console makers are increasingly reliant on services, subscription revenue, and PC ports (Sony earned ≈$2.37B from selling first‑party games on PC).

Player behavior & time competition

• Gamers are playing fewer titles and concentrating on evergreen hits (GTA V, Destiny, etc.). Median Steam user plays ~4 games/year (down from 5).
• 46% of US gamers buy fewer than one game per year; 86% buy between 0–4 games/year.
• Free‑to‑play games account for ~45% of PlayStation/Xbox time and ~55% of PC time since January 2021.
• Short‑form video (TikTok) is taking gaming time — an increase of about 39 million hours/day in the US versus earlier baselines.

Pricing pressure & risks

• Some companies are raising prices to sustain revenue, but pricing power is limited to a few mega‑franchises (e.g., GTA). Broadly raising base prices (e.g., to $100) is risky for most AAA titles.
• Component and AI infrastructure costs threaten PC and eventually console economics as hardware and development costs may rise.

Player loss — why it matters

If players stop playing or play less, the consequences cascade through the ecosystem:

• Spending and network effects fall.
• Player loss reduces satisfaction and spending of remaining users.
• It becomes harder for new games to break through due to concentrated attention on a few titles.
• Growth for a title usually requires stealing time/spend from other titles — an “eat or be eaten” market.
• If players don’t spend more, investments (hiring, new games) must be funded by existing players or cut; publishers may reduce investment and cancel projects.

Practical strategies, industry responses, and tips

For companies

• Focus on core gameplay and experiences that drive retention rather than only technical showpieces.
• Adopt leaner teams and tighter scopes to improve margins.
• Expect more remakes/remasters of proven sellers and fewer risky technical showcases.
• Increase emphasis on services/subscriptions and PC sales/ports where unit economics are stronger.

For players

• Vote with your wallet: avoid microtransactions and games you don’t value to discourage exploitative monetization.

What to expect

• More cancellations of live‑service projects that fail to find players.
• Greater attempts to monetize a smaller active player base (squeezing more revenue per remaining player).
• Continued competition for players’ attention from non‑gaming platforms (TikTok, short‑form video).

Notable examples mentioned

• Games & series: Suicide Squad: Kill the Justice League; Grand Theft Auto (GTA6 referenced); The Outer Worlds 2; Assassin’s Creed Black Flag; God of War (original trilogy); Spider‑Man 2; Spider‑Man: Miles Morales; No Man’s Sky; Highguard; Fortnite; Arc Raiders; Destiny 2; Call of Duty; Path of Exile; Delta Force; Concord (mentioned as a risky priced title).
• Platforms/companies: Roblox; Steam; PlayStation; Xbox; Nintendo; Netflix; Paramount; Warner Bros; Epic Games; Microsoft; Sony; Amazon (Prime); Google Cloud.
• People/sources: Matthew Ball (report); Tom Warren (tweet referenced); an unnamed Epic representative interviewed in the video.

Where to read/watch

• Matthew Ball’s full “State of Video Gaming” report (164 pages) for the raw data and charts — the video references specific pages (8, 22, 36, 54, 67, 83).
• The creator’s interview with Epic and additional videos referenced (Blacksmith Wukong video; a review of High on Life).

Credits / Thanks

The video creator thanked: Chris, Freddy, Brandon, Sher, Jason, Marcus, Hargit, and Shane.

Sources and people featured

• Matthew Ball (annual State of Video Gaming report; his tweets)
• Epic Games (interview referenced)
• Tom Warren (tweet referenced)
• Games and companies listed above (Roblox, Steam, PlayStation, Xbox, Nintendo, Netflix, Paramount, Warner Bros, Sony, Microsoft, Amazon, Google Cloud)
• Individual games & franchises listed in the “Notable examples” section