Gaming has transformed dramatically

The industry now reaches 3.6 billion players worldwide and has become a mainstream part of entertainment over the past 15 years.

Growth faces some headwinds

Rising development costs, tighter regulation, and player attention concentrated on a few major franchises could limit expansion.

The recession-proof myth tested

Gaming companies have cut around 45,000 jobs since 2022, challenging the industry's reputation for being recession-resistant.

Market poised for steady expansion

Consultant BCG estimates the gaming market will grow about 6% annually, reaching $350 billion by 2030.

Browser games are taking over

Mobile and browser-based games are booming because they're easy to play without expensive hardware and often include social elements.

“really easy for virtually anyone to play”

App stores losing their grip

Developers are challenging the 30% cut taken by Google Play and Apple Store through lawsuits and legislation, with many now bypassing them entirely.

Big budget games still thriving

AAA games revenue will grow 4.7% yearly for the next four to five years as new generations of gamers continue logging on.

Recurring revenue replaces one-off sales

The industry has shifted from selling boxed products once to charging for continued access, cosmetics, season passes, and subscriptions.

“far more predictable than hoping a single release performs well in its launch quarter”

Platform boundaries are blurring

Cross-platform play and cloud gaming let the same title reach players on console, PC, and mobile, creating diversified revenue streams.

Games become entertainment franchises

Modern games are now bundles of intellectual property with distinctive characters and music that work across films, TV, and experiential events.

TV and film adaptations booming

Recent hits like The Last of Us and Fallout show gaming IP can attract massive audiences beyond gaming itself. Over 200 adaptations commissioned since 2019.

Adaptations boost game sales dramatically

TV shows increase players by over 200%, compared to 48% for films. After Fallout aired, the old Fallout 4 game climbed back into the top five.

Virtual reality hits a plateau

Meta is pivoting away from VR toward adaptive reality glasses. VR has a passionate core audience but faces limitations like isolation while playing.

VR still has a foothold

Over 20 million Meta Quest headsets sold, with one in four US teenagers owning a VR headset. More than a million people use them daily.

“relatively high for an emerging technology”

AI won't replace game developers

AI can't produce complete video games by itself yet. Google's Project Genie footage revealed major limitations in maintaining coherent game worlds.

“Video generation struggles to maintain coherent frames over more than a few minutes”

AI will cut development costs

With typical game costs rising from $50 million to $500 million, AI will help with efficiency gains in creating characters, environments, and texturing.

Take-Two owns blockbuster franchises

The company behind Grand Theft Auto VI also owns 2K studios and mobile developer Zynga. Stock trades at 21 times expected 2028 earnings.

“an example of exceptional intellectual property that can help sell software, move hardware and command the culture”

Ubisoft offers value play

Despite struggles, Ubisoft owns major franchises like Assassin's Creed and Far Cry. It trades at less than half its estimated net asset value.

Sony and Nintendo diversifying revenue

Sony's PlayStation and The Last of Us TV series, plus Nintendo's Super Mario movie and theme parks, show how gaming IP expands beyond consoles.

Everplay is a UK bargain

This smaller company publishes indie games like Worms and Wardogs. Revenue more than doubled from 2020 to 2025, trading at just 10.3 times 2027 earnings.