Registration is open for CES 2024 with an anticipated 1200 start-up companies and 4000+ exhibits expected. Keynotes and tech sessions will be livestreamed from Las Vegas, January 9-12. Investors, media reps, customers, policy-makers and shakers encompass the 130k waiting to attend this year, making it “The Most Powerful Tech Event in the World“. Leading every CES semi-annual event is their CTA’s US Consumer Technology One Year Industry Forecast. Here are five take-aways from their 2024 report and what in-part those predictions signal to the Gaming Industry.
CTA chart outlining changes in post-pandemic hardware and software/service spending (projected). Consumers will spend $14B on audio streaming services and $48B on video streaming in 2024.
The Year of the MegaBundle
- Prediction: Content providers will increase their promotion of “service bundles” to draw more consumer interest.
- Bundles give publishers the potential to offer ‘across-the-board’ discounts to consumers on games, downloadable content (DLC) and accessories while also simplifying the payment process. “Megabundles” are usually offered in part of a special promotion and may see a lot in 2024. Most businesses have their own version of a megabundle. We’re already seeing this in 2024 with Star Citizen‘s $48k ship megabundle for big spenders within their player base.
AI, Believe (or Beware) the Hype
- Prediction: Over 230M smartphones and PC’s shipping to the U.S. this year will tap the powers of generative AI.
- Mobile apps, web browsers, and “built-in” software programs are deploying AI in the likes of audio & video generative and quality enhancement tools. This is a great signal on the consumer side – a potentially foreboding one for game design. Last December, well received The Finals game boasted a team of less than 100 people thanks to AI in 2023.
- More than 10,000 people globally have been estimated to have lost their job in the games industry last year. Moreover, some analysts have warned of the potential of even more redundancies to be expected in 2024.
Streaming Up
- Prediction: Consumers will spend $14 billion (up 6% over 2023) on audio streaming services and $48 billion (up 4%) on video streaming in 2024.
- Change may come with Netflix’s big plans for their cloud gaming service launching from beta this year and the power of Pixel Streaming gaining traction in content creation.
Set of hands holding mobile phones. People use smartphones and surfing in social media, mobile games, chatting, watch video. Credit: nazarkru
Devices & Services Go Hand-in-Hand
- Prediction: CTA estimated that 25% of all consumer spending on tech was for various software and subscription services in 2019. In 2024, CTA projects those same services to be up to about 33% of all consumer spending.
Gaming Hardware Boom
- Prediction: Product refreshes in tablets, augmented and virtual reality headsets and gaming consoles will boost gaming revenues in 2024. Gaming Industry revenue is predicted with a 12% increase in subscription services; growing to $3.5 billion.
- There is high-potential of a major console refresh in 2024/2025. Most notably reports of a Nintendo Switch 2 and Playstation 5 Pro announcement this year.
- Roadmap documents related to a mid-gen Xbox Series refresh leaked during the FTC vs. Microsoft case in 2023. Microsoft has yet to announce any related 2024 plans however Xbox Series X did go on sale for $339 right before the end of 2023; Leading to intense speculation online. During Microsoft’s Wells Fargo TMT Summit, CFO Tim Stuart revealed Microsoft’s considering a “free version” of Xbox Gamepass. Additionally, Stuart also hinted a Game Pass “change of strategy” when it comes to monetization and unveiled ambitions of Game Pass reaching “every screen”.
Consumer Technology Association and Methodology
Since 1967, CTA is North America’s largest technology trade association. Twice each year, CTA updates it’s forecast of more than 125 consumer tech products and services. They chart the size and growth of the tech industry and it’s under-lying categories. CTA owns and produces The Consumer Electronics Show (CES) or what they call “the most powerful tech event in the world”.
CES will take place and livestream from Las Vegas, January 9th – 12th.
Source: Consumer Technology Association (CTA), Consumer Electronics Show 2024 (CES 2024)
