2023 in Video Games: What Do We Know Already?

The video game industry is entering a period of significant consolidation and structural evolution, as highlighted by recent market analysis and platform updates. Data from Activate Consulting’s 2023 Technology & Media Outlook indicates that major tech firms are increasingly adopting a full-stack approach to gaming, leveraging their scale to acquire publishers. This trend is expected to continue, with even large entities like Electronic Arts and Embracer Group potentially becoming acquisition targets. Consumer data further identifies a core demographic of habitual gamers—characterized as younger, higher-income males—who view gaming as their primary entertainment and are most likely to engage in multi-device play.

The concept of the metaverse is currently being defined by existing video game ecosystems rather than future hardware. Research shows that 77% of gamers already participate in non-gaming activities within virtual worlds, such as socializing or creating digital content. While mixed reality is expected to enhance immersion, analysts forecast that VR and AR headset sales will not be the primary driver of metaverse growth over the next five years. Instead, the foundation of these virtual experiences remains rooted in established gaming platforms and user agency.

Platform-specific updates are also reshaping the developer and consumer experience. Steam is standardizing public release date displays to improve localization and consistency, moving away from custom text strings toward specific formats like quarters or years. Meanwhile, Microsoft is shifting its strategic focus toward mobile gaming to break the existing storefront duopoly, and TikTok is expanding its footprint with a dedicated games tab. Despite these digital expansions, hardware costs remain a factor, as evidenced by Meta’s significant financial losses in its Reality Labs division even as it prepares to launch the Quest 3 in 2023.