In a landscape marked by shifting trends, the global PC gaming hardware market is poised for a remarkable transformation. According to Jon Peddie Research (JPR), the market is expected to surge by 35% in 2025, reaching an impressive .5 billion. However, this growth comes with a caveat: a notable decline in entry-level PC gaming is anticipated over the next five years.
Shifting Demographics in Gaming
Dr. Jon Peddie, president of JPR, highlights a projected reduction of approximately 13% in the entry-level PC gamer population, translating to over 10 million individuals potentially leaving the PC platform altogether. The allure of consoles, handhelds, and mobile gaming is drawing budget-conscious gamers away from traditional PC setups.
One significant factor contributing to this shift is the impending end of support for Windows 10. Dr. Peddie notes, “Never before in the history of the Microsoft Windows operating system has there been a forced hardware migration requirement.” This transition is not as simple as swapping out a graphics card; it necessitates a CPU upgrade for over 100 million gamers, which in turn demands a motherboard upgrade and likely new RAM as well.
Interestingly, many gamers are opting for new prebuilt systems rather than attempting to upgrade their existing setups. DIY enthusiasts are also adapting, often building new computers alongside their current Windows 10 machines. This strategy allows them to continue gaming while transitioning to Windows 11, which imposes stricter hardware requirements, including TPM 2.0 support found only in newer CPUs and motherboards.
For those still using older systems running Windows 10, the path to upgrading to Windows 11 is fraught with challenges. To officially transition and keep their operating system up to date, these users will need to overhaul their entire hardware platform. JPR’s forecast reflects this reality, predicting a significant decline in gaming on entry-level systems as users are compelled to invest in midrange and high-end hardware.
The definitions of “entry-level,” “midrange,” and “high-end” are fluid in today’s market. Despite many GPU prices returning to their manufacturer’s suggested retail price (MSRP), labeling any current or previous generation hardware as “entry-level” can be a daunting task. Nonetheless, this is the current state of affairs.
It is essential to note that upgrading to Windows 11 is not a strict necessity for Windows 10 users. With some modifications to the installation file or registry keys, it is possible to bypass the TPM requirement. Whether JPR has accounted for this potential workaround remains uncertain.
Regardless of these challenges, the overall outlook for the PC hardware market remains optimistic. Projections indicate a rise from less than billion in 2024 to over billion in 2025, with further growth anticipated in subsequent years. This trajectory offers a promising perspective, especially when compared to potential declines.
