What Transformation Has the Video Game Software Market Undergone?
The video game software market has seen considerable growth due to a variety of factors.
• The rapid expansion of the video game software market has been noticeable in the recent past. The market, currently valued at $269.01 billion in 2024, is projected to escalate to $304.33 billion in 2025, maintaining a Compound Annual Growth Rate (CAGR) of 13.1%.
This considerable growth during the historical phase is due to factors such as in-game purchases and freemium offerings, the influence of live streamers and gaming influencers, an increase in smartphone usage, and a rise in disposable income.
What Does Future Hold for The Video Game Software Market Size?
The video game software market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the video game software market is poised for significant expansion in the coming years, reaching a value of $497.57 billion in 2029 while growing at a compound annual growth rate (CAGR) of 13.1%.
This anticipated growth can be attributed to factors such as the proliferation of internet usage, a rising inclination towards digital games, the emergence of cross-platform publishing and play, technological advancements in platforms, and heightened engagement from gamers. Predicted trends for this period include the integration of AR and VR technologies, emphasis on in-game advertising, the provision of free access to games with key features available in paid versions, the availability of game software services on the cloud with a pay-per-usage payment model, streaming video game services, and investments in both the development of new software and upgrades to existing ones compatible with the latest gaming consoles.
What Are The Primary Growth Drivers In The Video Game Software Market?
The predicted expansion of the video game software market is primarily attributed to the swift growth within emerging markets. For example, projections by the Office for National Statistics, a government organisation based in the UK, indicated that the UK's GDP will witness a small 0.1% growth in 2023, a follow-up to a strong 4.3% surge in 2022. Furthermore, the retrieval of commodity prices following a crucial drop in the historical phase is anticipated to enhance market growth. Economic stability in developed economies is also likely to sustain steady growth across the forecast period. Emerging markets, on the other hand, are predicted to outpace this slightly, offering quicker growth than their developed counterparts. Such stable economic growth is projected to amplify investments in end-user markets, thus propelling the market throughout the forecast period. Therefore, the acceleration of growth in emerging markets will be a key driver for the video game software market.
What Is The Segmentation Of The Global Video Game Software Market?
The video game software market covered in this report is segmented –
1) By Type: PC Games, Browser Games, Smart Phone/Tablet Games, Console Games
2) By Genre: Action, Adventure, Role Playing, Simulation, Strategy, Sports, Shooter, Fighting, Racing, Other Genres
3) By Type Of Transaction: Physical, Online/Microtransaction, Digital
Subsegments:
1) By PC Games: Action/Adventure Games, Role-Playing Games (RPGs), Simulation Games, Strategy Games, Sports Games
2) By Browser Games: Casual Games, Multiplayer Online Battle Arena (MOBA) Games, Strategy Games, Puzzle Games
3) By Smart Phone/Tablet Games: Casual Games, Action Games, Role-Playing Games (RPGs), Strategy Games, Puzzle Games
4) By Console Games: First-Person Shooter (FPS) Games, Action/Adventure Games, Sports Games, Role-Playing Games (RPGs), Fighting Games
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What Emerging Trends Are Shaping The Video Game Software Market Landscape?
The concept of Games as a Service refers to a mode of software delivery where a company typically hosts a game application on a distant server, and users can connect to it via the internet, often referred to as cloud gaming. Numerous game creators are offering their products through a model based on subscriptions and are enabling users to buy extra content or features through micro transactions. This extra content may take the form of new items within the game, weaponry, attire, or other player character accessories, as well as in-game currency and prizes. This business model generates an ongoing stream of income for game companies, avoiding the need to rely solely on single-instance purchases. Key companies providing games as a service include Activision and Blizzard Entertainment.
Who Are the Key Players in the Video Game Software Market?
Major companies operating in the video game software market include:
• Tencent Holdings Ltd.
• Nintendo Co.Ltd.
• Sony Corporation
• NetEaseInc.
• Microsoft Corporation
• Activision BlizzardInc.
• Electronic Arts Inc
• Ubisoft Entertainment SA
• Square Enix Holdings Co.Ltd.
• Konami Holdings Corporation
• Nova Gaming Ventures Private Limited
• TA Games Studio
• Virtuos Holdings Pte. Ltd.
• Elex Technology Co. Ltd.
• Zeus Interactive Co. Ltd.
• Beijing Babeltime Technology Co. Ltd.
• Happy Elements Technology (Beijing) Limited
• Shanghai Everstar Online Entertainment Co. Ltd.
• 2Pi Interactive
• 99Games
• Apar Games
• Dhruva Interactive
• CreatioSoft
• Sega Sammy Holdings
• Bandai Namco Holdings
• BEETSOFT Co. Ltd.
• Rikkeisoft
• Wizcorp
• CoolGames
• Tinhvan Outsourcing Jsc. (TVO)
• Playsoft Game
• Supercell
• Gameloft
• Ronimo Game
• Travian Game
• Asobo Studio
• Engine Software
• Frontier Developments plc
• Keywords Studio
• Sumo Digital Team17 Digital Limited
• Codemasters
• XSEED Game
• 22cans Ltd
• 4J Studios Limited
• Blitz Games Studios Limited
• BossAlien
• Climax Studios
• Curve Digital Limited
• Rockstar North Limited
• Sports Interactive Limited
• Criterion Games
• HeroCraft
• Brainy Studio
• BUKA Entertainment
• Factory Online
• Ambidexter LLC
• Mail.Ru Group
• Alawar Entertainment
• Nival
• GSC Game World
• Action Forms
• Meridian'93
• Elephant Game
• Gaijin Entertainment
• Novosoft
• Alderac Entertainment Group
• Arc Dream Publishing
• Evil Hat Productions
• Valve Corporation
• Etermax
• Bamtang Game
• Squad
• Iguanabee
• AOne Game
• Pomelo Game
• Wixel Studios in Lebanon
• Nezal Entertainment in Egypt
• UAE-based Tahadi Games
• Game Power 7
• Gameguise
What are the Regional Insights into the Video Game Software Market?
Asia-Pacific was the largest region in the global video game software market in 2024. North America was the second largest region in video game software market. The regions covered in the video game software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
