The global video games market size reached USD 248.52 billion in 2023 and is expected to cross around USD 664.96 billion by 2033, at a CAGR of 10.32% from 2024 to 2033.
The video games market encompasses the global industry involved in the development, production, distribution, and monetization of video games. This market includes a wide variety of game genres, platforms, and business models, catering to diverse consumer preferences and technological advancements. Unlike viewing a movie or television show, playing video games allows players to immerse themselves in the story and engages them on a deeper emotional and physical level.
Video games, in the opinion of many psychologists and scientists, foster higher-order and abstract thinking abilities. The physical structure of the brain is altered by playing video games, like learning to read a map or play the piano. Concentration and neurotransmitter surges act together to fortify neural circuits and challenge the brain. Playing multiplayer video games may help players develop mental abilities, including collaboration and teamwork, fast analysis, precision, reasoning, hand-eye coordination, spatial skills, logistics, resource management, and problem-solving.
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Video Games Market Key Insights
- Asia Pacific dominated the video games market with the largest market share of 54.14% in 2023.
- By platform, the mobile segment has contributed more than 42% of the market share in 2023.
- By type, the online segment accounted for the biggest market share of 65% in 2023.
Video Games Market Top Companies
- Tencent Holding Limited
- Square Enix Holdings Co., Ltd.
- Take-Two Interactive Software, Inc.
- Electronic Arts Inc.
- Nintendo of America Inc.
- Gameloft SE
- Activision Blizzard, Inc.
- Microsoft Corporation
- Amazon.com, Inc.
- Sony Corporation
- King Digital Entertainment Ltd.
Video Games Market Revenue by Top Companies
Recent Developments
- In July 2024, Microsoft and Amazon teamed up to allow Fire TV devices to use the Xbox online gaming service. Popular titles like Starfield, Fallout 4, and Forza Horizon 5 may be accessed by Amazon Fire TV Stick 4K Max (2023) and Stick 4K (2023) users starting in July by purchasing an Xbox Game Pass Ultimate membership, which costs Rs 549 per month in India.
- In July 2024, In a £2.2 billion agreement, Swedish private equity fund EQT agreed to buy Irish video game studio Keywords Studios, indicating that it may find a buyer in the London stock market. After delays and cancellations, Keywords Studios finally agreed to a lower proposal. Following EQT’s four unsolicited approaches in May, the acquisition includes debt.
- In July 2024, in a unique election pop-up that BBC made for Roblox, users can help Larry the Cat locate polling boxes and interact with celebrities like Laura Kuenssberg, Clive Myrie, and Jeremy Vine.
Video Games Market Regional Outlook
Asia-Pacific region occupied the largest market share of 54.14% in 2023.
The demand for games on console, PC, and mobile platforms is rising in the Asia Pacific area due to the expansion of the middle class. High-end games and gaming gear are becoming increasingly necessary due to technological breakthroughs like cloud gaming and virtual reality (VR)/ augmented reality (AR) gadgets.
China is the global leader in esports thanks to its fast internet and 4G and 5G capabilities, which make mobile gaming possible. Three unicorn companies, Game24X7, Dream 11, and Mobile Premiere League, were founded in India, which has stimulated the sector. Simple text-based settings, intricate visuals, and virtual worlds are all types of online games.
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Video Games Market Segments Outlook
Platform Outlook
The mobile segment dominated the market and is expected to witness significant growth in the video games market during the forecast period. Video games played on portable media players, tablets, and smartphones are called mobile games. There has been a surge in games intended for lifestyle, health, and education objectives as mobile devices become more widely used. These games have applications in speech-language pathology, pediatric rehabilitation, habit formation, memorization, and language acquisition.
Similar goals are served by gamified applications, which are not games in and of themselves. Multiple players can participate in mobile games locally or remotely using Bluetooth or Wi-Fi technologies. Mobile multiplayer games can be played through turn-based asynchronous tournaments or live synchronous tournaments. In live tournaments, users compete at random via networks such as Game Center, Google Play Games, and Facebook, with people from all around the world. While individual turns in asynchronous tournaments need a constant live connection.
Type Outlook
The online segment dominated the video games market in 2023. Numerous advantages come with playing video games online, such as increased focus, analytical abilities, relaxation, mood elevation, and revenue. It’s a favorite option among players since it calls for rapid thinking, patience, and focus. With the portable environment that mobile gaming offers, users can unwind and play from any location.
Playing video games also makes you feel accomplished, which improves your mood. It is possible to become a professional gamer and earn money through the many esports leagues. Additionally, it provides educational possibilities, imparting new abilities like negotiation, problem-solving, planning, and quick thinking. Gamers’ eyesight and strength are also enhanced by gaming, and quick reflexes are essential for success in a variety of endeavors.
Video Games Market Dynamics
Driver
Changing Gamer Preferences
The gaming experiences on PC consoles and mobile devices are gradually merging, with mobile devices providing sophisticated gameplay and excellent visuals. Since smartphones are now more suitable for communication than desktop or console games, mobile games may now include social gaming capabilities.
Mobile versions of well-known PC/console games like Diablo, League of Legends, and Call of Duty are being developed, while popular mobile games like Fortnite, FIFA, Genshin Impact, and Minecraft are doing well, boosting the growth of the video games market. Square Enix has also released puzzle games for mobile devices that are IP-driven, reimagining well-known titles like Deus Ex, Hitman, and Tomb Raider. Cross-platform development and game optimization for a growing number of devices are two obstacles that prevent genuine convergence, leading to cross-play not being completely realized.
Restraint
Strict regulations
Due to the enormous variety of games played around the globe and the hazy distinctions between gaming and gambling, the laws and regulations governing the gaming sector are complicated. For example, the rules for Texas Holdem Poker differ from those of other web games. Esports, a popular genre combining gaming and sports, has international competitions shown on national television.
The regulations governing gaming, sports, and prize promotions are more intricate when it comes to these games and esports. These rules are also influenced by the way the games are structured. Businesses dealing with these games also must abide by these guidelines, policies, and restrictions on sponsorship. It’s important to know the difference between gaming and gambling because they might be difficult to distinguish from one another.
Opportunity
Advanced technologies
The video games market is evolving into a center for technical innovation, especially in the areas of display and data visualization. Immersion gaming experiences are being revolutionized by virtual reality (VR) and augmented reality (AR), which enable more emotional connection and possibly game-changing developments like holographic displays powered by nanotechnology.
Even though these technologies are still in their infancy, they portend an endless future for entertainment and gaming. Video games demonstrate the industry’s dedication to cutting-edge technology and are a superb predictor of future technical paths due to their inherent desire to play and constant quest for innovation.
