56% of PC revenue came from games outside the Top 20 last year. Newzoo's latest PC & Console report says the long tail is getting bigger.

Long tail gains traction on PC

Newzoo's data shows that games ranked below the Top 20 made up 56% of Western PC revenue in 2025, rising from 48% in 2022. The data show those lower-ranked games also grabbed a much larger slice of playtime over the same period. Tianyi Gu, Newzoo's market analysis manager, noted that games outside the Top 20 are gaining economic importance.

This shift has important implications for finance teams.

Newzoo's breakdown points to a shift in how value is distributed across PC. Publishers are still getting big returns from blockbuster launches, but premium releases and back-catalogue titles are pulling more revenue outside the ultra-top end. The company highlights a handful of newer hits — Path of Exile 2, Monster Hunter Wilds, Kingdom Come: Deliverance 2 — alongside carryover performers such as Cyberpunk 2077, Elden Ring and Skyrim, which continue to sell and be played years after release.

Spending patterns are changing too. Premium games — AAA, AA and indie premium releases — made up roughly 29% of total PC revenue and were the main growth engine within that segment, with an 11.8% increase across those categories in the most recent year.

Playtime versus revenue: a split picture

However, increases in playtime don't always match revenue growth.

Newzoo reports playtime outside the Top 20 climbed from about a third of total PC playtime in 2022 to the low-to-mid 40s by 2025, depending on the metric used. That contrasts with the revenue shift, which moved more decisively into the hands of a greater number of titles. What that shows is players are trying more games and returning to older ones, while spending still leans toward certain monetisation strategies — premium pricing, paid expansions and in-game purchases.

For developers and investors, the implication is layered. Trial and discovery are more important than they used to be. Back-catalogue monetisation — via discounts, remasters, expansions or platform promotions — is proving a workable revenue stream. And a broader catalogue can reduce reliance on a single hit.

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Console markets stay top-heavy

By contrast, console spending stayed heavily franchise-led. Newzoo's analysis shows lower-ranked PlayStation titles accounted for about 38% of revenue in 2025, up from 33% in 2022, while playtime for those titles rose to around 32%. Still, the bulk of cash on consoles came from the Top 20 and from major first-party action-adventure releases such as God of War Ragnarok, Ghost of Tsushima, Marvel's Spider-Man 2 and The Last of Us Part II.

Xbox presents a different angle: more titles get playtime thanks to subscription access, but that doesn't translate into equal revenue. Newzoo points out that Game Pass drives visibility and trial — helping a wider array of games reach players — yet revenue remains concentrated, with only about 35% of Xbox revenue coming from titles outside the Top 20 in 2025. In short: subscriptions broaden who plays what; spending still clusters at the top.

Market forecasts and what they mean for firms

Newzoo's projections are important for investors and corporate finance. The firm projects combined PC and console revenue will keep rising through the decade, moving from $88.3 billion in 2025 to a forecasted $94.3 billion in 2026 and reaching $103.7 billion by 2028. It also expects PC revenue to grow faster than console — a 6.6% compound annual growth rate for PC from 2025 to 2028 versus 4.4% for consoles — and to overtake console revenue by 2028.

That trajectory is tied to a few trends. Regional expansion, notably in East Asia, will probably push the player base beyond one billion by 2028. Ben Porter, director of consulting at Newzoo, said growth isn't just China-driven: Japan, South Korea and other East Asian markets are contributing to the rising user count, and those markets differ in how much each player spends.

Publishers will therefore weigh scale against revenue per user. In some regions you'll get volume but lower average revenue per paying user (ARPU); in others you'll see higher ARPU but smaller incremental player numbers. The practical takeaway: companies chasing scale may prioritise reach and subscription placement, while those focused on revenue per user may double down on premium pricing, expansions and live-service monetisation in higher-ARPU markets.

Pricing, discovery and the role of subscription services

Newzoo also flagged price tiers. Its data suggest the $30–$50 range is a cross-platform sweet spot for premium pricing in major Western markets — a range where buyers are willing to pay and publishers still capture substantial revenue. At the same time, microtransaction revenue softened slightly in 2025, reflecting pressure in some live-service ecosystems, while subscription revenues nudged up mainly through price increases and tier upgrades.

This combination of premium releases, back-catalogue sales, subscriptions, and microtransactions presents finance leaders with strategic choices. Do you invest in a big, costly AAA that can anchor a platform, or build a catalogue strategy that compounds over years? The Newzoo data suggest the latter is getting more valuable on PC than it was just a few years ago.

Where companies might focus next

Operational strategies will likely shift. Marketing budgets may tilt toward sustained catalogue promotions and cross-promotions to keep older titles active. Monetisation teams could prioritise content pipelines that boost long-term engagement rather than short-lived spikes. And platform deals — especially on PC storefronts and subscription services — will play a growing role in discovery and trial.

Investors should watch regional user trends and ARPU shifts closely. A broader player base reduces growth risk but can compress near-term revenue per user; conversely, leaning on high-ARPU markets can lift margins but concentrate geographic exposure.

For smaller studios, the expanding long tail offers opportunity. More titles getting measurable revenue means an indie hit can sustain a studio without needing to break Top 20. For larger publishers, the finding points to diversified portfolio strategies — not just chasing the next blockbuster, but also nurturing back-catalogue and mid-tier premium releases.

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"It doesn't grow in the same way as console, because consoles have these cycles: You have a console generation, and you'll see upgrades, and then you'll see changes in people's spending behaviours around this," said Ben Porter, director of consulting at Newzoo.

This article was created with AI assistance.