Market (Overall)·Updated Mar 17, 2026 by Newzoo
Report · January 1, 2023
Published by Newzoo
The media and entertainment landscape is undergoing a fundamental generational shift toward active engagement, characterized by a seamless blend of physical and digital activities. Younger audiences, particularly Gen Z, are leading this transition by prioritizing interactive experiences over passive consumption. For the first time, Gen Z spends more time on video games and virtual worlds, averaging 12.2 hours per week, than on traditional broadcast or subscription television. This demographic also demonstrates a high level of creative participation, with 68% identifying as digital creators and spending three times more hours on user-generated content than Gen X. Video games have emerged as the primary driver of this engagement, commanding a 72% active participation rate among US consumers. While movies and series still lead in total weekly volume at 17 hours, the gap is narrowing as gaming platforms like Fortnite and Roblox evolve into holistic entertainment hubs. These virtual spaces now serve as venues for socializing, attending concerts, and digital commerce, effectively functioning as early iterations of a persistent metaverse. This shift is further evidenced by the success of transmedia franchises and cross-media intellectual property strategies that bridge the gap between gaming, film, and music. The future of the industry lies in the convergence of physical and digital worlds through interoperable 3D spaces that foster deeper fandom. Brands are increasingly integrating into these ecosystems through digital collectibles and in-game partnerships to capture the attention of younger consumers. High-profile investments in virtual fashion and NFTs underscore the growing economic value of digital assets within these environments. Ultimately, the industry is moving away from a model of passive viewership toward one defined by persistent, interactive, and creator-driven experiences that unify physical and virtual identities.
# A New Era of Engagement in Media & Entertainment How varying generations engage with the digital and physical world
# The future of media and entertainment is not about a complete shift to digital. There are many misconceptions about how dierent generations engage with media and entertainment. Here are some of the ones we want to dispel.
# Younger Generations Play in Both Physical and Digital Spaces Defining physical and digital activities to examine how dierent generations spend their time Physical Participating in sports or other physical/mental exercises, including yoga, fitness, walking. Digital Playing video games, participating in online betting or gambling, including online casinos. Popularity of playing sports and games (comparing physical and digital activities) Share of generation that is active and share of generation that does both (%) Source: Newzoo Consumer Research | US Online Population 10-50 | June 2022 74% of Gen Z participates in sports/fitness activities More time spent gaming doesn't mean that younger generations are more averse to physical sports. In fact, almost $70 \%$ of Gen Z do both compared to less than half of Gen X. Much of this report centers around Gen Z in comparison to Millennials and Gen X. Based on when we gathered the data, we define each generation as: Gen X were born from 1965 to 1980, Millennials from 1981 to 1996, and Gen Z from 1997 to 2012. Examining behaviors and preferences across these generations, we can see that younger people are spending more time blending digital and physical activities and pursuing more active forms of engagement.
# The future of media and entertainment is about... # MEDIA # People engaging with all forms of entertainment in a single environment. 12.2 hrs/week Younger generations are turning more to game platforms for media engagement. Gen Z spends an average 12.2 hours per week on games. # ENTERTAINMENT # A generational shift to more active forms of engagement . 53% When it comes to games, younger consumers find new ways to engage. Gen Z consumers spend more than half of their time engaging with game IP in other ways than playing. # LEISURE TIME # An increasing convergence of activities in the digital and physical world. 68% Younger generations spend their time not just consuming content, but creating it. $6 8 \%$ of Gen Z identify as digital creators, compared to $46 \%$ of Gen X. This is an active process that unites digital and physical engagement methods.
# Contents - Introduction 6 - Media 7 - Entertainment 15 - Leisure Time 25 - The Metaverse 32 # $\textcircled{1}$ About the data in this report This report features high-level insights from a consumer research study that we conducted in the US in June 2022. The scope of the study was the online population aged 10-50 and the sample is representative of ~180M people. When we refer to generations, we use the following definitions. Gen Z: People aged 10-25 | Millennials: People aged 26-40 | Gen X: People aged 41-50 We understand that Gen X represents a wider age range, but for the purposes of this study, we focused on a sample aged 10-50 and believe it's representative.
CEO Newzoo How we choose to spend our time has changed a lot in the 15 years since Newzoo was founded. New generations have fresh views and expectations on how they spend and value their time. The physical and digital worlds are blending, fueled by innovations in VR, blockchain, crypto, web3, and NFTs. Consumer behavior is shifting, especially after the pandemic. Researching, analyzing, and reporting on shifting consumer behavior and its impact on business is what Newzoo does. Since day one, we have focused on games as the most innovative form of entertainment and the most challenging to track. Fifteen years on, the games business has grown by $\$ 155$ billion in consumer-generated revenues alone. The most important metric that has grown even faster is time spent or engagement. This is because games give people the power to choose. Gamers spend as much or as little time or money as they wish and decide whether their experience is passive, active, or a mix of both. You could consider this the foundation of “the metaverse” as games are now a destination for all types of engagement including creating, socializing, viewing, and playing. # Games are now an entertainment form that can be enjoyed across all media as well as a media platform that can host any other form of entertainment. This not only impacts game companies, that continue to expand their horizons to include other forms of entertainment, but also consumer brands and the traditional media value chain that relies largely on advertising. Younger generations now want to actively engage with content and IP through creation, play, and simultaneous socializing. Fandom can no longer be built with passive experiences alone. That’s why we are releasing this report. Newzoo’s mission is to accelerate the future of gaming and we believe that future is equal to the future of media and entertainment. We want to enable the companies that are creating and shaping this future to thrive, with data and insights that are future-proof and take engagement as the starting point. # Our eorts may not contain all the answers. But we are confident that we can at least help the market to ask better questions.
Gaming has evolved into the primary entertainment medium for younger generations, with 94% of Gen Alpha identifying as game enthusiasts. This shift signifies a transition from gaming as a solitary hobby to a multi-dimensional "way of life" that encompasses playing, viewing, and socializing. While mobile gaming maintains universal appeal across all age groups, younger cohorts like Gen Alpha and Gen Z are significantly more likely to engage across multiple platforms and participate in virtual social environments. These younger players demonstrate high spending conversion rates, with approximately 60% investing in games, often driven by a desire for social immersion and diverse genres such as Adventure and Battle Royale. In contrast, older generations like Gen X and Baby Boomers exhibit more utilitarian engagement patterns. These cohorts primarily favor casual puzzle-solving titles and are motivated by achievement, mastery, and time-saving mechanics. While 70% of younger players are "player-viewers" who consume gaming video content for entertainment and social connection, older players use video content more informationally, such as for reviews or tutorials. This generational divide extends to brand discovery; younger players are increasingly open to discovering new brands within game worlds, making the medium a vital marketing tool for reaching modern consumers. The global gaming landscape is characterized by both universal franchises and distinct regional preferences. Major titles like Call of Duty, Fortnite, and Genshin Impact maintain a massive international presence, yet markets such as China, Japan, and South Korea continue to support region-specific hits like Honor of Kings and Lineage. Across these diverse geographies, the 2023 data highlights that gaming has become a central pillar of social interaction and brand engagement, particularly as younger generations integrate virtual experiences into their daily identities and consumption habits.
Gaming has evolved into a multi-dimensional entertainment ecosystem where traditional play is no longer the sole driver of engagement. Findings indicate that 79% of the global online population are game enthusiasts, participating through playing, viewing content, or socializing in virtual worlds. This shift is most pronounced among younger generations; for Gen Alpha, gaming has surpassed social media and streaming video as the primary source of entertainment. The research highlights a significant trend toward the "metaverse," with 75% of players and 44% of non-players engaging in game worlds for social interaction without playing the core game. This high level of engagement translates into substantial economic impact, with consumer spending in the sector projected to exceed $200 billion in 2023. Approximately half of Gen Alpha, Gen Z, and Millennial gamers are already classified as payers, a figure expected to rise as younger cohorts gain independent purchasing power. Data suggests that gamers are a highly receptive audience for brands, exhibiting 36% more positive attitudes toward brand messaging compared to non-players. However, the diversity of the audience necessitates a nuanced approach. Using proprietary segmentation, the analysis shows that while older generations often act as "Time Fillers," younger audiences are more likely to be "Ultimate Gamers" or "All-Round Enthusiasts." Even within the same genre, such as Battle Royale, player demographics and motivations vary significantly between titles like Fortnite and Apex Legends, affecting their preferences for products like energy drinks or alcohol. The findings are based on a 2022 study utilizing Computer Assisted Web Interviewing (CAWI) with a representative sample of 75,930 respondents. The scope covers 36 global markets across North America, Europe, Latin America, and Asia-Pacific, targeting the online population aged 10 to 65. Additional sentiment studies on the metaverse and blockchain gaming supplement the core consumer data.
Gaming has evolved into a primary form of entertainment that transcends age groups, though engagement patterns vary significantly by generation. Younger cohorts, specifically Gen Z and Millennials, now prioritize gaming over traditional media like television or social media, spending approximately 25% of their leisure time on the medium. While 81% of Gen Z identifies as gamers, the hobby maintains a strong foothold among older populations, with 42% of Baby Boomers participating. This data suggests that gaming has become a focal point for global leisure, offering brands extensive opportunities to reach diverse audiences across 33 surveyed markets. The depth of engagement is highly correlated with age. Younger generations exhibit multi-dimensional behaviors, including viewing game-related content, participating in online communities, and utilizing games as social hubs. For Gen Z and Millennials, streamers and content creators serve as major cultural influences, with over two-thirds of these groups both playing and watching gaming video content. In contrast, older generations like Gen X and Baby Boomers engage more casually, primarily using mobile platforms to fill time or unwind. Their motivations are largely practical, often seeking out reviews or "tips and tricks" rather than social or competitive experiences. The industry is currently shifting toward the metaverse, characterized by virtual spaces that host non-gaming activities such as concerts and social gatherings. Approximately 70% of Gen Z gamers expect to spend time in game worlds without actively playing the main game, signaling a move toward digital persistence and self-expression. While younger players favor sandbox and battle royale genres that empower creativity, all generations express interest in metaverse features like free advertiser-sponsored content and avatar customization. This research, based on a sample of over 72,000 respondents, concludes that gaming is no longer just a pastime but a foundational component of modern social identity and digital interaction.
Gaming has evolved into a multi-dimensional entertainment ecosystem that extends far beyond traditional play, encompassing viewing, socializing, and content creation. Research conducted between February and April 2022 across 36 global markets reveals that 79% of the online population are game enthusiasts. This engagement is most profound among younger generations; for Gen Alpha, gaming has surpassed social media and streaming as the primary source of entertainment. The study utilized a representative sample of 75,930 respondents aged 10 to 65 to analyze behaviors across five distinct generational cohorts. Data indicates that gaming is increasingly a platform for social connection, with 75% of players engaging in game worlds for social purposes without playing the primary game. This trend is a significant driver of the emerging metaverse. Financial engagement is also high, with approximately half of Gen Alpha, Gen Z, and Millennials spending money on games. Total consumer spending in the sector was projected to exceed $200 billion in 2023. Furthermore, the rise of blockchain gaming and play-to-earn models shows significant future potential, with 34% of players in the United States expressing interest in these technologies. The findings emphasize that gamers are a highly attractive demographic for brands, as players generally hold 36% more positive attitudes toward brands compared to non-players. However, the diversity of the audience necessitates a nuanced approach to engagement. Using a proprietary segmentation model, the research identifies various personas ranging from Ultimate Gamers to Time Fillers. For instance, while both Apex Legends and Fortnite are battle royale titles, their player bases differ significantly in age, gender, and brand preferences, illustrating that effective marketing requires deep insights into specific game communities and generational motivations.