REPORT: Games Industry rebounds to $250B
The interactive entertainment industry continues to evolve at breakneck speed, presenting both exciting opportunities and formidable challenges for players across the ecosystem. Our latest report, Interactive Entertainment 2025 Global Market Sizing & Forecast, provides a comprehensive overview of this dynamic landscape, offering crucial insights for industry professionals, investors, and enthusiasts alike.
Key Findings
Early signs of a return to market growth despite economic headwinds. The global gaming market is projected to reach $250.2 billion in 2025E. However, in the short-term this represents a modest 0.6% year-over-year growth for 2024E and masks significant shifts within various segments.
Mobile gaming continues its reign as the industry's largest category, expected to generate $109.6 billion in revenue for 2024E, up 3.6% y/y, and reaching $116 billion by 2025E. This growth persists despite market saturation and rising user acquisition costs, highlighting the segment's resilience and innovation.
Console gaming is at the end of the current device generation, and hardware sales are declining by 31% (2024E). However, this dip is partially offset by strong software sales, with the segment expected to reach $44.9 billion, growing 3.1% year-over-year. For 2025E, the dip in console will continue (-11% y/y) but move toward recovery.
PC gaming shows the strongest growth at 4.2% and 8.1% for 2024E and 2025E,, respectively. It’s set to reach $31.4 billion in consumer spending this year. Its momentum underscores the platform's enduring appeal and adaptability.
Emerging technologies like Virtual reality emerge as a bright spot, with 8.9% growth forecast for 2024E, reaching $3.8 billion by 2025E in consumer spending. Major investments from tech leaders and anticipation surrounding new product launches like Apple's Vision Pro are fueling this expansion.
Esports and Live-Streaming limps forward. While popularity remains high, platforms continue to grapple with profitability challenges. Esports revenue is expected to dip 3% to $173 million in 2024E and another -8.3% for 2025E, highlighting the urgency to develop novel monetization strategies and a more robust advertising marketplace.
Transmedia strategies on the rise as major entertainment companies increasingly adopt cross-platform approaches, leveraging IP across various media to create interconnected experiences and maximize revenue potential. This trend blurs the lines between gaming and other forms of entertainment, opening new avenues for engagement and monetization.
Non-endemics have entered the playing field. Non-gaming brands like Mattel and Walmart find success with activations on platforms such as Roblox. This trend underscores gaming's growing importance as a marketing channel and immersive brand experience platform.
Overall companies are doubling down on efficiency and strategic consolidation to improve profitability. This shift may lead to more mergers, acquisitions, and partnerships in the coming year.
Long-term optimism prevails despite near-term challenges. Industry leaders remain bullish on the long-term prospects of interactive entertainment. The impending release of highly anticipated titles and the continuous evolution of technology keep the future bright for gaming.
As brands navigate this fascinating but complex landscape, staying informed is more crucial than ever. Our report offers deep dives into each of these trends, providing actionable insights and data-driven forecasts to help you make informed decisions.
Whether you're a seasoned industry veteran or a curious newcomer, understanding these trends is essential for success in the world of interactive entertainment. The game is changing, and the players who adapt fastest will emerge victorious.
Ready to level up your industry knowledge? Download our full "Interactive Entertainment 2025: Global Market Sizing & Forecast" report now. Gain access to detailed market analysis, exclusive interviews with industry leaders, and in-depth data visualizations that will give you the edge in this competitive landscape.