The rise in the consumer spending on cutting-edge next-generation gaming consoles is anticipated to boost the gaming hardware market share during the forecast period. In addition, rise in the number of Triple-A or AAA games, which will demand powerful computers and advanced displays and developments in high-end laptops and PCs with top-notch graphics and the introduction of high-definition televisions are estimated to boost the gaming hardware market growth in the coming years.
The global gaming hardware sales are predicted to experience surge as virtual reality (VR) demand rises and players gravitate toward games with lightning-fast framerates. In addition, new interests among gamers in more expensive consoles and peripherals are being sparked by developing technologies like the Internet of Things (IoT) and expanding internet penetration. The demand for cutting-edge gaming gear has increased owing to quick improvements in technologies like 3D facial scanning, real-time image capture, speech recognition, and smooth motion in the gaming industry. The advent of cloud gaming, also known as gaming-as-a-service (GaaS), has increased demand for hardware devices including PCs, smartphones, and game consoles.
Despite the fact that gaming has expanded the horizons of many different companies as well as individuals, the associated technology and equipment remain prohibitively expensive, making them unattainable for many end users. This issue has become more severe in various areas due to a lack of semiconductor chips, which are required to power gaming laptops and consoles. There are still certain nations that have not yet recovered from the slowdown brought on by the pandemic. Nintendo lowered its full-year earnings projections on February 7, 2023, noting that the global chip scarcity had slowed Switch sales and that, nearly six years after its debut, the popular console was beginning to lose steam. According to the Japanese corporation, new games like "Splatoon 3" and "Pokemon Scarlet and Violet" have done well mostly as a result of the scarcity of semiconductors and other component supplies
The COVID-19 pandemic had a positive impact on gaming hardware demand industry as most of outdoor games were banned due to the fear of the spread of coronavirus. Hence, people switched to indoor games. While arcade and action games are still widely played, the e-sports industry has considerable development potential. As an illustration, in India, in 2022, GVFL (previously Gujarat Venture Finance Limited) and current investor Unicorn India Ventures invested $3 million in Gamerji, an esports competition platform. According to the company, more than 4 million Indian gamers are currently being served, and more than 22 popular esports events have taken place. The money raised will be put to use expanding the company's platform in recently opened countries in the Middle East and North Africa area, commencing with Indonesia and the Philippines in Southeast Asian markets. he company also intends to use these funds to develop tech solutions and E-sports as a Service (EaaS) to improve the online gaming experience.
New product launches to flourish the market
Gaming is becoming the most popular and fastest-growing type of entertainment, with three billion people actively playing games and being encouraged by a new generation that has grown up loving interactive media.
Activision Blizzard Inc. is a pioneer in game development and a publisher of interactive entertainment content. Microsoft Corp. has revealed ambitions to acquire the company in January 2022. This purchase will speed up the expansion of Microsoft's gaming business across mobile, PC, console, and cloud platforms and will serve as a foundation for the metaverse.
Likewise, SRD, which has contributed to numerous Nintendo projects for almost 40 years, has been acquired by Nintendo. SRD's management foundation will be strengthened by Nintendo's acquisition of SRD, which will also assist "ensuring the availability of software development resources for Nintendo." Additionally, the creator of Mario stated that purchasing SRD will "enable an anticipated boost in software development efficiency."
By Product Type: The gaming hardware market by product type is divided into consoles and accessories. Among these, consoles accounted for dominant market share and is anticipated to grow at a significant CAGR during the forecast period. Gaming console is a desktop system that connects to monitors and other displays so that users can play video games on them. Consoles like Nintendo Wii, an Xbox, or Sony PlayStation, are all basic computers that contain a storage device just like a computer, and they run using an operating system, just like a computer .They store data similarly because they are essentially computers. In addition to playing games, many individuals use gaming systems to browse the web and watch movies. On the gaming console's internal hard drive, this data is kept. This implies that information, including destroyed information from a game console, can be recovered.
An online account must be created to use a console gaming device to play games online for instance, Xbox Live subscription . Since the user now has an online identity and some of that information is recorded on the game console, this generates data that can be used as proof. A computer and a gaming console can both be used as proof. One can choose to get emails from some games that describe their performance in a match. For instance, after finishing a game of Madden football, one can request to have an email detailing one’s performance delivered to them. This kind of information might seem inconsequential, but it can be used to pinpoint the person's whereabouts at their gaming system on a specific date and time and thereby create an alibi.
By End User: On the basis of end user, the gaming hardware market is segmented into commercial and residential. Commercial gaming is the most popular category because of its application in military and aviation training. It improves the ability of pilots, soldiers, and other military people by providing correct training. In addition, a number of indie and triple-A game developers have emerged, like naughty daog, WB Montreal, Rockstar Games, and others. The games and simulations have ling history in the military sector owing to their potential use as training tools.
By Region: The market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Among these, the North America dominated the market due to changes in customer preferences and rise in purchasing power. The adoption of superior gaming gear is a result of technological improvement and infrastructure growth. In addition , the dominance of gaming hardware manufacturers such as Microsoft, Nvidia, and others is anticipated to boost the popularity of gaming hardware in this region in the coming years.
This report includes competitive analysis and profiles of major players in the gaming hardware market including Microsoft Corporation, NVIDIA Corporation, Nintendo Co Ltd., Logitech International S.A., Oculus VR, Playstation, Sega Games, Linden Research, Razer Inc., and others. These companies have adopted key strategies such as product launches and acquisitions to improve their product portfolios and stay competitive in the market.
Gaming Hardware Market Report Highlights
By Product Type
By End User
Key Market Players
Microsoft Corporation, Sega Games, Razer Inc., NVIDIA Corporation, Nintendo Co Ltd., Linden Research, Logitech International S.A., Oculus VR, playstation