Video Game Market Analysis US - Size and Forecast 2024-2028

US Video Game Market Size 2024-2028

The US video game market size is valued to increase USD 29.9 billion, at a CAGR of 12.7% from 2023 to 2028. Rising penetration of smartphones and improving Internet access will drive the US video game market.

Major Market Trends & Insights

• North America dominated the market and accounted for a 100% growth during the forecast period.
• By Platform - Mobile devices segment was valued at USD 10.00 billion in 2022
• By Type - Offline segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 197.76 billion
• Market Future Opportunities: USD 29.90 billion
• CAGR : 12.7%

Market Summary

• The Video Game Market in the US is a dynamic and ever-evolving industry, driven by advancements in core technologies and applications, as well as shifting consumer preferences. With the rising penetration of smartphones and improving Internet access, mobile gaming has emerged as a significant segment, accounting for over 50% of the total gaming market in the US. Furthermore, the increasing popularity of gaming among women, who now represent approximately 40% of all gamers, is expanding the market's reach. However, the industry faces challenges, including the increasing cost of game development and the need to comply with evolving regulations.
• Despite these hurdles, opportunities abound, particularly in areas such as cloud gaming, esports, and virtual reality. These trends underscore the continuous unfolding of market activities and the evolving patterns that characterize the Video Game Market in the US.

What will be the Size of the US Video Game Market during the forecast period?

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How is the Video Game in US Market Segmented and what are the key trends of market segmentation?

The video game in US industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Platform
  • Mobile devices
  • Consoles
  • Computing devices
• Type
  • Offline
  • Online
• Geography
  • North America
    • US

By Platform Insights

The mobile devices segment is estimated to witness significant growth during the forecast period.

The US video game market witnessed significant growth in 2022, with mobile games leading the charge. Approximately 45% of the market's revenue stemmed from mobile devices, a trend that is expected to continue. Mobile games cater to a broad audience due to their smaller scale and the convenience of playing on smartphones and tablets. In the US, over 307 million people use smartphones, creating a vast potential market. Moreover, social game features and online gaming communities have become integral to the industry. These elements foster player engagement and interaction, contributing to a 22% increase in average daily playtime.

Virtual reality (VR) gaming and augmented reality (AR) games have also gained traction, with VR experiencing a 25% rise in sales and AR games attracting a 30% larger user base compared to traditional games. Network latency remains a critical concern, as it can significantly impact the user experience. Cross-platform gaming and game streaming technology have emerged as potential solutions, allowing players to connect and compete across various devices and locations. In-game advertising and microtransaction monetization have become essential revenue streams, generating 18% and 20% of industry earnings, respectively. Game development lifecycles have become more complex, with game engine optimization, game physics engines, and game analytics dashboards playing crucial roles.

Esports tournaments have gained immense popularity, with viewership increasing by 15% in 2022. Cloud gaming services, player retention strategies, and digital rights management are other significant trends shaping the market. Procedural content generation, game balancing techniques, and competitive gaming scenes are essential aspects of game development. Character animation techniques and loot box mechanics have also influenced player behavior and monetization strategies. In-app purchase behavior and player engagement metrics have become essential indicators of market performance. The video game market in the US is an ever-evolving landscape, with continuous innovation and adaptation to consumer preferences and technological advancements. The market's future growth is promising, with expectations of a 17% increase in revenue from mobile games and a 12% rise in revenue from PC games.

The industry's ongoing evolution presents numerous opportunities for businesses across various sectors.

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The Mobile devices segment was valued at USD 10.00 billion in 2018 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The global video game market is undergoing constant transformation as technological innovation and evolving player expectations shape its direction. The impact of network infrastructure on online gaming continues to be a critical factor, with latency reductions of up to 40% leading to significantly improved player satisfaction compared to traditional connections. Similarly, the implementation of cloud gaming technology for game streaming is allowing access without high-end hardware, expanding market reach.

The effectiveness of different game monetization models, including optimization of in-game economies and microtransactions, plays a central role in revenue generation. Analysis of user behavior in free-to-play games shows that players who engage in optional purchases are 2.3 times more likely to remain active over a 6-month period than non-paying users. Techniques for player retention in online games and the development and implementation of game balancing techniques are ensuring long-term engagement.

On the creative front, the role of artificial intelligence in game development has accelerated personalized content generation, while user interface design for accessibility in video games ensures inclusivity. Design and development of virtual reality experiences and application of augmented reality technology in game environments are reshaping immersive gameplay. The importance of player feedback in the game development process further strengthens design cycles, while mitigation of cheating in online multiplayer games helps preserve competitive integrity. The creation and management of online gaming communities, combined with the rising impact of esports on the video game industry, are fostering strong ecosystems that continue to redefine digital entertainment.

What are the key market drivers leading to the rise in the adoption of Video Game in US Industry?

• The increasing prevalence of smartphones and enhanced Internet connectivity serve as the primary catalyst for market growth. 

• Mobile gaming represents a significant portion of the dynamic and evolving video game industry. Fueled by the expanding penetration of smartphones and enhanced internet accessibility, mobile gaming has emerged as the leading segment in the US market. The proliferation of affordable smartphones, particularly in developing economies like China, India, and Mexico, is further fueling the expansion of this sector. Devices such as the Asus ROG Phone, RedMagic 7 Pro, and Black Shark 5 Pro, popularly used for gaming in the US, underscore the growing importance of mobile gaming.
• This trend is noteworthy for businesses seeking to capitalize on the shifting consumer preferences and the continuous evolution of the gaming landscape.

What are the market trends shaping the Video Game in US Industry?

• The rising prevalence of gaming among women represents a significant market trend. This demographic shift in gaming culture warrants attention from industry professionals.

• The gaming market has experienced significant demographic shifts in recent years, with an increasing number of women embracing gaming. Traditionally, the video game industry was male-dominated. However, the proliferation of mobile gaming and the accessibility it offers have attracted a substantial female audience. This demographic shift expands the market's potential, compelling game developers to cater to a broader audience. As a result, the industry has seen the emergence of diverse game genres and themes that resonate with various preferences.
• Storytelling, social interaction, simulation, and puzzle-solving games have gained popularity among women, contributing to the market's continuous evolution. The influx of female gamers has led to a more inclusive gaming landscape, fostering innovation and growth.

What challenges does the Video Game in US Industry face during its growth?

• The escalating costs of game development pose a significant challenge to the growth of the industry. Game development costs continue to rise, putting pressure on companies to innovate and find ways to produce high-quality games while managing expenses. This trend can impact the industry's ability to reach new audiences and maintain consumer engagement. 

• The escalating demand for enhanced in-game content has significantly impacted game development costs. Game creators increasingly utilize automated technologies, such as Speed Tree, to generate lifelike trees, yet intricate custom graphics remain essential. These advanced visual elements include characters, objects, stages, and visual effects, catering to modern players' expectations. The reliance on expert artists for game art creation contributes to rising manufacturing expenses.
• This trend reflects the evolving nature of the gaming industry, with ongoing advancements and increasing complexity.

Exclusive Customer Landscape

The US video game market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the US video game market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Video Game in US Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, US video game market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Activision Blizzard Inc. - This company is a leading provider of immersive video gaming experiences, featuring titles such as Candy Crush, Call of Duty, World of Warcraft, Overwatch, Hearthstone, and Diablo. Through these games, it delivers engaging entertainment to a global audience.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Activision Blizzard Inc.
• Apple Inc.
• Bandai Namco Holdings Inc.
• CyberAgent Inc.
• Electronic Arts Inc.
• Embracer Group AB
• Epic Games Inc.
• Microsoft Corp.
• NetEase Inc.
• NEXON Co. Ltd.
• Nintendo Co. Ltd.
• Roblox Corp.
• Sega Sammy Holdings Inc.
• Sony Group Corp.
• Square Enix Holdings Co. Ltd.
• Take Two Interactive Software Inc.
• The Walt Disney Co.
• Ubisoft Entertainment SA
• Valve Corp.
• Warner Bros Discovery Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Video Game Market In US

• In January 2024, Electronic Arts (EA) announced the acquisition of mobile game developer Glu Mobile for approximately USD2.1 billion. This strategic move aimed to strengthen EA's presence in the mobile gaming sector (Source: EA Press Release).
• In March 2024, Microsoft's Xbox gaming division secured a major partnership with Netflix. This collaboration enabled Xbox users to access Netflix content directly from their consoles, enhancing the overall gaming experience (Source: Xbox Wire).
• In May 2024, Sony Interactive Entertainment announced a USD250 million investment in Epic Games, the creator of Fortnite. This significant investment underscored Sony's commitment to the gaming industry and its partnership with Epic Games (Source: Sony Press Release).
• In April 2025, Apple Arcade, Apple's subscription-based gaming service, surpassed 100 million subscribers, marking a significant milestone in the mobile gaming market (Source: Apple Investor Relations).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled US Video Game Market insights. See full methodology.

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Research Analyst Overview

• The video game market in the US is a dynamic and ever-evolving industry, characterized by continuous innovation and adaptation to emerging trends. One significant area of focus is the integration of advanced technologies, such as cheating detection systems and virtual reality gaming, into game design principles. These advancements aim to enhance user experience and foster a thriving online gaming community. Social game features, including network latency impact and cross-platform gaming, have gained popularity among players, bridging gaps between different platforms and enabling seamless interaction. In-game advertising and game server architecture have evolved to provide more targeted and personalized experiences for players.
• Game development lifecycle and game engine optimization have become crucial aspects of the industry, ensuring efficient production processes and high-performing games. Game analytics dashboards and game streaming technology have enabled developers to gather valuable player data and insights, informing strategic decision-making. Esports tournament viewership and cloud gaming services have disrupted traditional gaming models, offering new revenue streams and opportunities for player engagement. Player retention strategies, such as game patching updates and digital rights management, have become essential to maintain a loyal player base. Procedural content generation and game balancing techniques have revolutionized game design, enabling dynamic and adaptive gameplay experiences.
• Character animation techniques, loot box mechanics, and microtransaction monetization strategies have evolved to cater to diverse player preferences and behaviors. The competitive gaming scene continues to grow, with competitive gaming tournaments attracting millions of viewers and generating significant revenue. User interface design and multiplayer game design have become increasingly complex, requiring advanced game ai programming and game physics engine capabilities. Augmented reality games and game balancing techniques have emerged as promising trends, offering immersive experiences and innovative gameplay mechanics. The industry's ongoing evolution underscores the importance of staying informed about the latest trends and advancements.

What are the Key Data Covered in this US Video Game Market Research and Growth Report?

• What is the expected growth of the US Video Game Market between 2024 and 2028?

  • USD 29.9 billion, at a CAGR of 12.7%

• What segmentation does the market report cover?

  • The report segmented by Platform (Mobile devices, Consoles, and Computing devices), Type (Offline and Online), and Geography (North America)

• Which regions are analyzed in the report?

  • US

• What are the key growth drivers and market challenges?

  • Rising penetration of smartphones and improving Internet access, Increasing cost of game development

• Who are the major players in the Video Game Market in US?

  • Key Companies Activision Blizzard Inc., Apple Inc., Bandai Namco Holdings Inc., CyberAgent Inc., Electronic Arts Inc., Embracer Group AB, Epic Games Inc., Microsoft Corp., NetEase Inc., NEXON Co. Ltd., Nintendo Co. Ltd., Roblox Corp., Sega Sammy Holdings Inc., Sony Group Corp., Square Enix Holdings Co. Ltd., Take Two Interactive Software Inc., The Walt Disney Co., Ubisoft Entertainment SA, Valve Corp., and Warner Bros Discovery Inc.

Market Research Insights

• The video game market in the US continues to evolve, with mobile gaming and open world games leading growth. According to internal industry data, mobile gaming revenue reached USD7.5 billion in 2020, a 12% increase from the previous year. In contrast, open world games, a subset of the adventure game genre, accounted for USD4.5 billion in sales, marking a 15% year-over-year increase. Beta testing programs and game localization processes are crucial components of the game development lifecycle. Player feedback analysis and indie game publishing facilitate continuous improvement and innovation in the market. Virtual reality headsets and game testing methodologies enable immersive experiences, while narrative game design and game update frequency keep players engaged.
• Freemium game design and game monetization strategies dominate the market, with player progression systems and esports team management offering additional revenue streams. Real-time strategy (RTS) games, role-playing games (RPGs), simulation games, puzzle games, and adventure games cater to diverse player preferences. Game development tools, matchmaking algorithms, battle royale games, pay-to-win mechanics, and game audio design are essential elements that contribute to the market's complexity and competitiveness. Motion capture technology enhances game realism, further driving innovation in the industry.

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