The video game industry continues to grow rapidly, solidifying its position as the top entertainment medium. According to Deloitte’s 2024 Gaming Outlook, 61% of U.S. consumers regularly play games, spending an average of 9 hours per week gaming. This surge in popularity can be attributed to the rise of mobile gaming, which has made games accessible to players of all ages. In fact, 85% of Gen Z, 78% of millennials, 60% of Gen X, and even 35% of boomers are actively playing games.
Despite the industry’s growth, Deloitte also points out that the gaming market is top-heavy. A Newzoo report revealed that 90% of game revenues in 2023 came from just 43 titles. This suggests that launching a successful new game is becoming increasingly challenging, especially with rising development costs for triple-A titles. As a result, large developers are taking fewer risks. However, there is still room for smaller game studios and non-gaming media companies with strong IP to thrive in this competitive landscape.
Deloitte’s report also highlights key trends that are driving growth in the games industry. One such trend is the rise of transmedia and game-to-film adaptations. Story-driven experiences have become increasingly popular, with the majority of surveyed players expressing a preference for single-player narrative-focused games. These transmedia adaptations are not only attracting players but also driving game discovery. In fact, 52% of Gen Z and millennial gamers surveyed stated that they decided to play a specific video game after watching a TV show or movie related to it.
Another trend identified by Deloitte is the use of generative AI in game development. This technology has the potential to address rising development costs and foster innovation. Studios are expected to experiment with generative AI for tasks such as concept art iteration, coding assistance, conversational NPCs, translation, and creating responsive game levels and digital goods. However, defining a coherent strategy for the use of this technology may prove challenging as it continues to evolve.
In conclusion, the gaming industry is experiencing significant growth, with a large and diverse audience. While launching new games may be more challenging than ever before, there are still opportunities for smaller studios and non-gaming companies with strong IP. The rise of transmedia adaptations and the use of generative AI are key trends driving growth in the industry. As the medium continues to evolve, it will be interesting to see how these trends shape the future of gaming.