Library | Game Industry Library

Nordic Game 2026: Participant Profiles and Platforms

Nordic Game 2026 serves as a primary hub for the Northern European video game industry, emphasizing a high density of developers and international attendance. The event facilitates business development and networking through a comprehensive speaker program, an expansive expo floor, and the annual Nordic Game Awards, which honors excellence among regional studios. The gathering targets a diverse range of industry professionals, including game startups, established studios, and service providers, with a specific focus on fostering connections between growing companies and global partners. The participant base is heavily weighted toward production and leadership, with developers and artists making up the largest segment at 40% of all attendees. This is followed by professionals in sales and marketing at 12.6%, management at 9.3%, and service providers at 4.3%. Smaller contingents include exhibiting indies and various support roles. In terms of platform focus, PC remains the dominant sector for participants at 57.5%, followed by console development at 34.2% and mobile gaming at 27.7%. Web and other emerging platforms represent a smaller portion of the ecosystem at 6.7%. The event infrastructure is designed to maximize return on investment through scalable exhibition options, ranging from small four-square-meter booths to large custom pavilions. Private meeting facilities are a core component of the offering, providing flexible spaces for four to fifty people to accommodate different business needs, from formal lectures to casual networking. By integrating sponsored content opportunities and specialized events like the Discovery Contest, the conference aims to support the entire lifecycle of game development within the Nordic region and beyond.

market-analysis europe pc+1

Nordic GameJan 2026

Report

How to Build an Effective Offer System in Your Game

A well‑designed in‑game offer system is presented as the most potent driver of lifetime value and average revenue per paying user. By integrating a limited set of synergistic offer types—login bonuses, triggered prompts, endless streams, “1 + X” bundles, battle‑passes, stamp‑cards, and curated bundles—and optimizing their frequency, timing, pricing, segmentation, and economic balance, developers can achieve conversion rates as high as ninety‑six percent on login offers and lift repeat‑purchase value by roughly twenty percent through endless offers. Conversion is shown to be a function of repeated exposure rather than a single impression; players typically require about seven viewings before taking action. The most effective moments to surface offers are at login, during “out‑of‑currency” events, after level failures, or in high‑momentum gameplay phases. A dynamic, tiered pricing ladder that escalates after each purchase and regresses after periods of inactivity—exemplified by a seven‑tier structure ranging from under one dollar to ninety‑nine dollars—enables precise alignment with player spend propensity while avoiding both under‑monetization of high‑potential users and alienation of low‑spenders. Segmentation must extend beyond basic recency and frequency metrics to incorporate geographic tier, acquisition source quality, and player progression. Lower‑tier regions demand adjusted price ladders and reduced offer frequency, whereas high‑quality acquisition channels justify more complex bundles. Early‑game players respond best to inexpensive, simple offers, while mid‑ and late‑game users can be presented with higher‑value packages. Anchoring the entire shop around a stable, low‑priced entry pack establishes a reference point that shapes perceived value across all offers. Collectively, these principles apply to mobile and casual games operating globally, reflecting current industry practices and data from recent case studies. Implementing the outlined framework promises measurable improvements in monetization efficiency, player satisfaction, and overall revenue performance.

monetization live-ops market-analysis+2

Sensor TowerJan 2026

Report

The State of Video Gaming: 2025

The global video game industry is currently undergoing a structural correction following a decade of rapid expansion that concluded in 2021. The primary thesis of this transition is that the industry’s previous growth engines—mobile expansion, live-service models, and pandemic-era engagement—have plateaued, leading to a 12% decline in real-term content spending. This downturn is characterized by widespread commercial underperformance, record-high layoffs, and a significant contraction in venture capital funding. As production budgets for AAA titles balloon toward $500 million, the market has become increasingly polarized, with player engagement and revenue heavily concentrated within a small cohort of long-standing, established franchises that effectively crowd out new releases. Geographically and sectorally, the landscape is shifting as Chinese developers gain significant global market share, rising from 0.5% to 12.5% of non-domestic content spending over the last 13 years. While the mobile sector faces a 23% revenue drop due to privacy-related user acquisition costs and competition from social media, the industry is pivoting toward cross-platform accessibility and hardware-agnostic distribution. Platforms like Roblox and Steam continue to dominate engagement, though developers face increasing pressure from high platform commission fees and the necessity of navigating a saturated market where discovery is increasingly difficult. Looking forward, the industry is attempting to mitigate these challenges through technological and business model innovation. Strategies include the integration of generative AI to enhance NPC behavior, the adoption of cloud-native simulations, and a strategic pivot toward programmatic advertising to supplement stagnant game pricing. Furthermore, regulatory pressures on app stores are expected to improve developer margins, while a resurgence in handheld hardware and cross-platform connectivity aims to unify fragmented ecosystems. Ultimately, the industry is moving toward a risk-averse, multiplatform approach, prioritizing long-term engagement and operational efficiency to survive an increasingly competitive and capital-intensive environment.

market-analysis market-forecast global+4

EpyllionJan 2026

Report

2026 Predictions: Trends in Gen AI, Gaming & Digital Ad Spend

The forecast outlines how generative‑AI, short‑form video and evolving ad formats will reshape the digital economy by 2026. It argues that AI‑driven applications will move from a niche category to a core revenue engine, rivaling traditional paid‑media traffic and reshaping user‑acquisition dynamics across mobile, web and gaming. The analysis draws on Sensor Tower’s app‑store, advertising and web‑traffic datasets, applying its App IQ and Game IQ taxonomies to the top publishers, the 1,000 most‑visited U.S. sites and the leading Steam releases, with historical data through December 2025 and forward projections to 2026. Generative‑AI apps are projected to generate more than $10 billion in worldwide in‑app‑purchase revenue, achieve 7.2 billion downloads and capture 43 billion hours of usage in 2026—an 82 % year‑over‑year increase that will place the genre among the top five for downloads, revenue and engagement. Short‑drama vertical video is forecast to overtake traditional OTT streaming in download volume, securing roughly 80 % of downloads and closing the IAP gap to 20 % of OTT’s share, driven by rapid adoption in markets such as India, Indonesia and Brazil. Meanwhile, U.S. digital ad spend will total $20 billion, with image‑based creatives outpacing video growth (35 % versus 15 % YoY) as social platforms, especially Meta’s Reels, shift budgets toward static formats. On the web, generative‑AI traffic will surpass paid sources on more than half of the top 1,000 U.S. sites by the end of 2026, up from 37 % in late 2025,

market-forecast ai advertising+1

Sensor TowerJan 2026

Report

The State of Video Gaming in 2025

The analysis demonstrates that global video‑gaming spend has surged to roughly $200 B in 2025, a 150 % rise since 2011, yet real‑term growth has stalled and margins have slipped to single digits. Mobile remains the only rapidly expanding segment, yet its revenue fell 23 % in Q1 2024 and download volumes dropped sharply after privacy deprecations, concentrating spend among a handful of high‑margin titles. Console sales have plateaued for a decade; Nintendo’s Switch drives modest growth while PlayStation and Xbox see flat or declining sales outside Japan, and AR/VR shipments underperform forecasts. PC and cloud‑based platforms such as Steam continue to dominate full‑game purchases, yet user engagement per capita remains low despite a 250 % rise in users and a 300 % increase in releases. Geographic analysis shows China as the largest single market ($50–65 B) and India emerging as a significant contributor, together accounting for roughly 30 % of projected $300 B spend. Western developers capture about two‑thirds of growth, but Chinese and emerging‑market titles increasingly dominate the AAA landscape. Venture capital funding has contracted sharply—only 1,500 deals worldwide with a steep decline in late‑stage investments—and studios face record layoffs and shrinking publisher share prices, underscoring heightened risk. The sector’s future hinges on non‑core, social‑centric platforms such as Roblox and UGC ecosystems that generate billions of engagement hours and pay developers substantial sums, albeit with limited autonomy. Cloud gaming, AI‑driven content, and ad‑supported SVOD models are emerging growth levers, yet rising development costs (AAA titles now exceeding $600 M) and thin operating margins continue to pressure publishers. Overall, the industry is in a state of consolidation, with blockbuster titles and platform‑centric ecosystems capturing most revenue while new entrants struggle to sustain momentum.

market-analysis global mobile+1

EpyllionJan 2026

Report

State of African Games 2026

The analysis delivers a data‑driven overview of African‑developed video games, concentrating on performance across global platforms—primarily Steam, with supplemental PlayStation and Xbox data—from 2015 through 2025. Its central thesis is that the continent’s game‑development ecosystem is emerging rapidly yet remains highly concentrated, especially in South Africa, and is transitioning from volume‑driven growth to a focus on higher‑quality, strategically positioned titles. South Africa accounts for the overwhelming share of both developers and commercial success, supplying all titles in the top‑ten sales list and driving the continent’s 2 % share of Steam unit sales—higher than the Middle East and comparable to Oceania. Releases peaked in 2023 with 23 Steam titles before falling to 11 in 2025, suggesting a shift toward longer development cycles. Genre analysis reveals a mismatch: simulation games achieve the highest median sales (≈372 k units), followed by adventure and RPGs, while action titles dominate the release count. Pricing follows global indie norms, with most games priced between $5.99 and $19.99; premium pricing above $21.99 appears in only a small fraction of titles. Unity is the leading engine (≈18 % of releases), Unreal accounts for about 7 %, and the remaining 73 % use a diverse set of smaller tools, reflecting a decentralized technical landscape. Methodologically, the study relies on Video Game Insights estimations for games launched after 1 January 2015, employing internal sales‑estimation algorithms that convert review counts and apply the Boxleiter method to infer unit sales and revenue. The scope encompasses all major platforms, covers the entire African continent, and isolates trends in genre, pricing, engine choice, and geographic distribution. Conclusions point to a transitional phase where success will depend less on release volume and more on distinctive cultural content, genre diversification, and broader support structures beyond South Africa. If these dynamics persist, the African game‑development sector is poised to evolve from an emerging participant to a recognized creative force within the global industry.

market-analysis game-development

Sensor TowerJan 2026

Report

Mobile App Trends: 2026 Edition

The mobile app industry entered 2026 with significant momentum, characterized by a 10% year-over-year increase in global installs and a 7% rise in sessions throughout 2025. Consumer spending reached a record $167 billion, signaling a robust digital economy. This growth coincides with a fundamental technological shift where artificial intelligence has transitioned from an experimental feature to essential infrastructure for predictive segmentation and data analysis. Furthermore, the industry is moving away from a strictly mobile-first approach toward multi-platform strategies designed to capture fragmented consumer journeys across various devices. User privacy sentiment is also stabilizing, with App Tracking Transparency opt-in rates climbing to 38% by early 2026. Sector-specific performance reveals a complex landscape of engagement and acquisition costs. While the global gaming population reached 3 billion in 2025, overall gaming installs remained flat as the cost per install rose 30% to $0.56. However, casual games outperformed the broader market with a 19% increase in installs and a 37% surge in sessions. In contrast, the e-commerce sector faced challenges as global installs fell by 10%, though Latin America emerged as a significant growth outlier with a 30% increase in user engagement. These trends suggest that while user acquisition is becoming more expensive in mature categories, specific genres and emerging markets continue to offer high-velocity growth opportunities. The finance sector demonstrated unique resilience, with sessions increasing by 21% despite a slight decline in installs, reflecting the deep integration of digital wallets into daily consumer habits. Finance apps also led the shift toward paid acquisition, achieving a paid-to-organic ratio of 1.13 as costs per install decreased in most regions. As the industry moves through 2026, success is increasingly defined by retention-led growth and sophisticated cross-channel attribution. Future scalability will depend on the ability of developers to leverage AI-driven personalization and cross-device measurement to maintain engagement in an increasingly competitive and fragmented global market.

market-analysis user-acquisition ai+2

AdjustJan 2026

Report

2025 Report on Marketing Trends of Productivity Apps

The report analyzes global marketing activity for productivity apps during the first half of 2025, drawing on a dataset of over 1.6 billion ad creatives from more than 80 channels across 80+ countries. It shows that the total pool of mobile app (non‑game) advertisers fell 17.8 % YoY to an average of 107 k per month, while new advertiser share rose to 11.7 %. In the productivity‑app segment, active advertisers declined 6 % YoY to about 8.9 k per month, yet the proportion of new entrants exceeded 30 % after Q2. Regional analysis indicates Europe and North America remain the largest markets, but both experienced declines in advertiser counts; Oceania shows the highest creatives per advertiser. Category‑level data reveal business & office apps hold 14.4 % of advertisers, whereas entertainment apps dominate creative volume at 32.7 %. Platform performance data highlight Meta, Google, and TikTok as the top three channels for cross‑platform campaigns; Google delivers the highest conversion rates, Meta offers AI‑enhanced targeting, and TikTok provides cost‑efficient Gen Z engagement with a CPM of $3.2. Creative format insights show video and playable ads outperform static creatives, with TikTok favoring short native videos (15–60 s) and Meta using a mix of carousel and video. The report recommends a cross‑platform strategy that prioritizes video and playable formats, leverages AI for rapid creative iteration, and tailors messaging to include social proof, urgency, and lifestyle integration. The data were collected from January to June 2025 through sampling of global ad channels, with statistical forecasting and industry interviews used for analysis.

market-analysis marketing advertising+2

SocialPetaDec 2025

Report

Esports 2023: Challenges and Opportunities in the UK

The report argues that the United Kingdom’s esports sector has evolved from a fragmented niche into a rapidly professionalised ecosystem, yet it still requires coordinated investment and policy to sustain growth. Key findings show an audience of roughly 55 million adults, with 82.7 % aged 18‑34 and a male dominance of 83 %. While shooters such as Call of Duty, CS:GO and Fortnite command the largest viewership, only 3.8 % of gamers follow competitive play, revealing a small “iceberg” of engaged fans. This gap highlights opportunities for talent development and global brand expansion, especially as the UK lags behind U.S. and Asian markets in producing top‑tier professionals. Economic data underscore the sector’s momentum: gross value added reaches £111 million and sponsorship revenue exceeds $1.38 billion, with UK events and teams capturing a $1.5 billion share of the global market. Major brands—Intel, Red Bull, Saudi PIF—and tournament operators such as ESL, FACEIT and Gfinity are driving investment, while infrastructure projects by XLHQ, Royal Ravens and Cloud9 create dedicated studios and community hubs. Educational initiatives, including a BTEC programme with Pearson and university leagues like NUEL, demonstrate that esports can boost computing engagement and skill development among 10 000 pupils. Despite these gains, challenges persist. Mainstream media coverage remains limited, and government support is uneven, constraining broader recognition of esports as a legitimate sport. Diversity and inclusion remain under‑addressed, with female participation at 17 % and a need for stronger links between education, industry and policy to create sustainable career pathways. Emerging monetisation models—Web3, NFTs, metaverse experiences—offer new revenue streams but require regulatory clarity and infrastructure investment. Coordinated action across stakeholders is essential to unlock the UK’s full economic and cultural potential in esports.

esports market-analysis uk+1

British EsportsDec 2025

Report

Business Case for an Enhanced Video Games Expenditure Credit: UK

The analysis argues that a targeted increase in the Video Games Expenditure Credit (VGEC) would markedly strengthen the United Kingdom’s competitive position within the global video‑games sector. By raising the nominal rate to 53 % for projects up to £10 million and to 39 % for larger productions, the model predicts an additional £530 million in gross value added (GVA) and roughly 6,000 new full‑time jobs over five years. The return on investment is projected at £2.12 of GVA and tax revenue for every £1 spent, positioning the UK as one of the most attractive jurisdictions for game development. Key findings highlight a worldwide contraction in employment, with 30 000 layoffs expected between 2023 and 2024, prompting a shift toward freelance and subcontracted talent. Venture‑capital funding has fallen sharply from $9 billion in 2020 to just over $3 billion by early 2024, while indie sales on platforms such as Steam now account for nearly 70 % of full‑game revenue. These trends underscore the need for flexible, cost‑efficient production models and a supportive fiscal environment. Comparative analysis shows that the current UK VGEC effective rate of 14 % is lower than those in France (20.2 %) and Canada’s Quebec (18.2 %). The proposed tiered scheme would raise the UK rate to 20.6 %, matching or surpassing many international competitors and potentially adding an extra 5,000 full‑time equivalents over five years. Across all scenarios, the cost‑benefit profile remains favorable, with GVA returns of £1.3–£1.4 per £1 invested and tax returns of £0.4–£0.5 per £1. In sum, the enhanced VGEC package delivers a superior economic return by stimulating export‑driven intellectual property creation and supporting both small studios and multinational operations. The model demonstrates that a carefully calibrated incentive structure can offset macro‑economic pressures, sustain employment growth, and secure the UK’s position as a global leader in video‑game development.

market-analysis funding employment+1

UkieDec 2025

Report

The Value of Esports in the UK

The study demonstrates that the United Kingdom’s esports industry has experienced robust growth, expanding at an average annual rate of 8.5 % between 2016 and 2019. In 2019 alone, the sector generated approximately £60 million in revenue—about eight per cent of global esports earnings—and contributed £111.5 million to the national Gross Value Added, supporting more than 1,200 full‑time equivalent jobs. These figures underscore the sector’s role as a significant driver of the UK digital creative economy. Key drivers identified include the proliferation of professional teams, high‑profile tournaments hosted by organisations such as ESL, Gfinity and Epic.LAN, and the rise of streaming platforms that have broadened audience reach. Dedicated venues like Belong Gaming Arenas further stimulate grassroots participation and local economic activity. Modelling of direct, indirect and induced effects reveals a total impact of roughly 216 FTEs and £19.5 million in GVA, while spill‑over benefits from event tourism—estimated at £234 k per 1,000 visitors and nearly five FTEs—highlight additional value for host communities. The analysis projects that hosting a major global esports event could add 238 full‑time equivalents and £12 million in GVA to the UK economy, signalling substantial upside potential. The findings point to opportunities for further investment, clearer regulatory frameworks and strategic positioning to attract international events, thereby consolidating esports as a pivotal growth sector within the United Kingdom’s broader digital economy.

esports market-analysis uk

UkieDec 2025

Report

Annual Review: 2025

The document outlines Ukie’s first year of its five‑year “Supercharged” strategy, aimed at accelerating the UK video games and interactive entertainment sector. The thesis is that a coordinated policy, industry‑wide campaigns, talent development and trade support can secure the UK’s position as a global leader in games. Key findings show that consumer spending reached £7.6 billion in 2024, a record high, and that Ukie’s advocacy generated three major policy wins: recognition of games as a growth sector, a tailored growth package and £30 million for the UK Games Fund. The organisation also secured £75 million in business wins through global trade activity at GDC and Gamescom, and delivered 19 consultations to government bodies. In talent development, Ukie supported 30 companies via its Growth Programme and ran the largest student game jam with over 200 participants, while Digital Schoolhouse won a national BETT award for best opportunities and experience. The scope covers the UK, with outreach to Scotland, Wales, Northern Ireland and international partners such as Tencent. Methodology includes evidence‑based lobbying, a national pulse survey network, and partnership with academic institutions for skills research. The report concludes that the next year will focus on deepening policy influence, expanding trade missions, and fostering emerging mobile, UGC and external‑engine opportunities to sustain industry growth.

market-analysis game-development employment+2

UkieDec 2025

Report

H1 2025 AIGC Mobile App Marketing Analysis

The analysis demonstrates that while the global pool of active AI‑advertisers has contracted by 35–45 % in H1 2025, the remaining players are compensating with a markedly higher creative output—an 84 % increase to an average of 416 monthly creatives per advertiser. Video advertising dominates the landscape, with 84 % of all ads and more than half of inventory in 15‑30 second formats. Geographic patterns reveal that Europe and North America maintain the largest advertiser volumes, yet exhibit lower creative density than Japan and South Korea, which show the fastest growth rates. Market saturation appears to be driving these firms toward intensified brand exposure through increased creative frequency, even as overall advertiser participation declines. Meitu’s financial results corroborate the commercial potency of AI‑driven features. Revenue rose 12.3 % to RMB 1.8 billion, largely propelled by a 45.2 % jump in AI‑powered imaging and design subscriptions to RMB 1.35 billion, while advertising income grew modestly by 5 %. The company’s flagship AI applications—“AI Wardrobe,” “WHEE,” and “Wink”—secured top positions in App Store charts across more than twelve countries, underscoring the role of AI enhancements in global user acquisition and subscription monetization. The broader ecosystem of AI‑powered mobile apps, including chatbots, development tools, and educational platforms, continues to enjoy strong monthly active user figures and high stickiness. However, product overlap creates fierce competition, making clear positioning and precise subscription pricing essential for successful global expansion. Rapid overseas success is achievable when apps tailor local marketing strategies to regional preferences. These conclusions are drawn from SocialPeta’s extensive dataset of 1.6 billion advertising data points, sampled across 80+ channels and regions from January 2024 to June 2025.

market-analysis ai marketing+4

SocialPetaDec 2025

Report

CESA Game Industry Report 2025

The 2025 CESA Game Industry Report presents a comprehensive assessment of the current state of the video‑game sector, emphasizing three strategic themes: the impact of artificial‑intelligence technologies on development, the latest dynamics of the global market, and emerging regulatory issues. By expanding data coverage to include China, Australia, major Western economies, India and the MENA region, the analysis offers a multidimensional view of both domestic and international trends. Global game‑content revenue reached 31.042 trillion yen in 2024, marking a 5.0 % year‑on‑year increase. Mobile games accounted for 18.433 trillion yen, roughly 60 % of total sales, and grew 6.0 % versus the prior year. PC titles posted the strongest platform growth over the past four years, expanding 59.7 % and overtaking console share, while console revenue showed modest contraction. In Japan, the total gaming population stood at 5.475 million in 2024, a slight decline from 5.553 million; mobile users fell 1.8 %, PC users rose 0.5 %, and console users decreased 0.7 %, with expectations of a rebound following the anticipated Switch 2 launch. Employment estimates indicate approximately 200 000 individuals work across the Japanese gaming ecosystem. Core developers, publishers and hardware manufacturers employ between 58 000 and 83 000 people, while ancillary sectors—such as visual production, middleware, peripherals, retail and media—constitute the remainder of the workforce. The findings derive from CESA’s own surveys, expert interviews and user studies conducted in China and Australia, supplemented by industry‑wide data sources and event reports (Tokyo Game Show, Japan Game Awards, CEDEC). The methodology blends desk research with primary fieldwork to deliver a layered, data‑rich portrait of the industry’s structure, growth drivers and regulatory landscape.

market-analysis ai employment+1

CESA – Computer Entertainment Supplier's AssociationDec 2025

Report

Esports is Shaping the Future of Live Entertainment

Esports is rapidly evolving into a mainstream live‑entertainment sector, with viewership surpassing 100 million hours and prize pools doubling since 2018. The industry’s growth outpaces traditional sports, registering a 10 % year‑over‑year increase while leagues such as the NFL and NBA stagnate. Core titles—League of Legends, CS:GO, Mobile Legends: Bang Bang, Dota 2 and Valorant—concentrate 70 % of total viewing hours, yet an estimated $2.5 billion in untapped gamer audiences remains available, underscoring significant scalability potential. Geographically, governments across France, Denmark, China and Japan are investing in infrastructure, tax incentives and athlete support, while the International Esports Federation seeks Olympic recognition. Sponsorship penetration has reached 45 % of non‑gaming brands, and universities now offer esports scholarships, indicating a blending of traditional sports support structures with the unique dynamics of game publishers. However, media‑rights monetisation remains constrained by fragmented licensing arrangements. The absence of a unified regulatory body creates volatility for players; games and prize pools can collapse abruptly, as seen with Fortnite and Heroes of the Storm. Coordinated regulation, career pathways, post‑career support and state investment are identified as essential for legitimising esports as a sustainable profession. In sum, the sector demonstrates explosive growth and high engagement among younger, tech‑savvy audiences, but requires cohesive governance and media‑rights frameworks to unlock its full economic potential.

esports market-analysis global+1

InvestGameDec 2025

Report

The Power of Play: Exploring the Growing Gaming Market

The Indian gaming market is projected to reach ₹8.6 billion by 2027, expanding at a 28 % CAGR from FY20‑23, while the global market is expected to hit $340 billion. A recent 28 % GST on total deposits—up from an 18 % tax on gross gaming revenue—has pressured real‑money gaming (RMG) firms to diversify geographically, slowed revenue growth, and triggered layoffs. These developments have spurred calls for tax reforms that align with international standards. Despite the fiscal headwinds, segments such as esports, indie studios, and mobile casual games continue to grow, with blockchain, AR/VR, and generative AI identified as high‑growth opportunities. Indian online gaming firms are responding to the GST amendment and broader market dynamics by absorbing or passing on tax costs, consolidating through acquisitions, and diversifying into new genres such as hyper‑casual games and esports. RMG now accounts for approximately 82 % of India’s gaming revenue, yet monetization remains weak relative to download volumes; only 10 % of global gaming funding reaches Indian startups. These strategic shifts aim to improve unit economics and capture higher‑spending segments. Investment activity underscores the sector’s resilience. Casual mobile games remain the most attractive category, with recent Indian titles raising between $1 M and $8.5 M in seed to Series A rounds, while blockchain‑based mobile titles have attracted a combined $396 M. The next three to four years are expected to be driven by AR/VR integration, generative AI, competitive multiplayer mobile titles, and blockchain‑enabled gameplay. Major venture funds—including Accel, Sequoia, and Lightspeed—are actively backing the full value chain, reflecting strong institutional confidence in the industry’s expansion.

market-analysis market-forecast monetization+2

Basic Roots ConsultingDec 2025

Report

Leveling Up for the New Reality: The Gaming Report

The report examines the global gaming market’s evolution from 2017 to 2028, highlighting a post‑pandemic correction that has shifted growth expectations from double‑digit rates to modest expansion. Global revenue by type rose 1 % CAGR (2017–2023), with mobile, PC, and console segments contributing $1.2 trillion in 2023; cloud/VR sales remain niche but are projected to grow at 5 % CAGR (2023–2028). Emerging platforms such as cloud AR/VR and user‑generated content show market sizes of $939 million (2024) to $1.75 billion (2028), yet infrastructure constraints limit mass adoption. Development economics reveal a widening gap: AAA development budgets increased 360 % (2012–2023 average) while sales and marketing costs rose 220 %, yet the number of AAA titles released fell by 73 %. Mobile publishers mirror this trend, with development costs up 54–92 % and releases declining. Console revenues are projected to outpace AAA budgets, with a 5 % CAGR in development spending versus 8 % in console revenue growth (2017–2028). Survey data indicate that most publishers expect to maintain or modestly increase budgets, with only 5–10 % planning reductions. Monetization shifts are pronounced in consoles: subscription services and premium digital sales will dominate, while mobile revenue increasingly relies on in‑app advertising (up to 31 % of mobile share). Consumer willingness to accept ads varies by platform, with over half of core PC/console gamers open to advertising in premium titles. Geographic analysis shows Chinese players exhibit the highest willingness to pay, and emerging‑economy gamers spend more time playing than their developed‑economy counterparts. Age segmentation reveals younger cohorts favor action/adventure, whereas older players gravitate toward puzzles and casual games. The report concludes that technological advances, particularly generative AI, may enable cost efficiencies but will likely be leveraged to fund larger, higher‑quality titles rather than reduce overall budgets.

market-analysis global investment+2

InvestGameDec 2025

Report

2025 Media & Entertainment Industry Predictions Report

The analysis projects that artificial intelligence will be the primary catalyst for change across the media and entertainment landscape in 2025, enhancing human talent rather than replacing it. Streaming services continue to dominate revenue streams, with global SVOD and AVOD income projected to surpass $165 billion despite a fragmented market of over 200 platforms. Consumer churn and escalating content costs drive consolidation, leading to bundled or aggregated subscription models that are expected to account for 60–70 % of purchases in mature markets. Traditional multichannel pay‑TV providers are forecast to lose half their U.S. subscriber base, falling below 50 million users, prompting a shift toward “stream‑hub” offerings that combine broadband with multiple streaming services at competitive prices. Video multichannel distributors such as YouTube TV are projected to peak and then decline due to rising costs, live‑sports migration to direct‑to‑consumer services, and intensified OTT competition. Cloud gaming is set for a 44 % CAGR through 2030, driven by faster broadband, AI‑enhanced virtualization, and new commercial models. Console and PC sales are expected to wane as consumers redirect spending toward streaming devices, with subscription‑based monetization replacing one‑time purchases. The sector’s growth hinges on resolving commercial model constraints, particularly the need for more attractive storefront incentives to unlock mass adoption and realize a $64 billion market by 2030. In creative media, firms will increasingly deploy proprietary large‑language models while navigating intellectual property risks and regulatory frameworks such as the EU AI Act. Eight core governance building blocks—risk management, training oversight, compliance, testing, and incident response—are identified as essential for mitigating AI‑related challenges. Retail media and search are undergoing rapid transformation, with retailers partnering with streaming and social platforms to manage fragmented ecosystems, privacy rules, and AI‑driven formats. Generative AI is eroding Google’s dominance by enabling conversational, multimodal search experiences from competitors like OpenAI, Perplexity, Amazon, and TikTok. Consequently, Google’s share of search advertising is projected to decline modestly worldwide (from 57 % to 55 %) and in the U.S. (51 % to 48 %), as shoppable content, live shopping, and AI query volume shift revenue toward alternative platforms. Marketers will adapt by optimizing for AI‑generated summaries, voice, and visual search to align with evolving consumer behavior.

market-analysis market-forecast ai+1

AlixPartnersDec 2025

Report

Predictions for the Digital Economy in 2026

The analysis projects a rapid expansion of the digital economy through 2026, driven primarily by generative AI applications and vertical video formats. Generative‑AI apps are expected to generate more than $10 billion in in‑app purchase revenue by 2026, with downloads projected to reach 4 billion and user engagement exceeding 43 billion hours. The genre will climb into the top five mobile categories across downloads, revenue, and time spent, surpassing established sectors such as shopping and movies. Short‑drama vertical video is forecast to overtake traditional OTT streaming in global downloads, narrowing the revenue gap and capturing 40 % of time spent by 2026. Digital advertising spending is shifting back toward image‑based creatives, with a 35 % year‑over‑year increase in image ad spend and a projected acceleration of this trend by 2026, especially within social channels where Reels and similar formats dominate. Meanwhile, generative AI traffic to the top 1,000 U.S. websites is projected to rise by more than 130 % YoY, reaching a point where half of these sites receive higher traffic from AI than paid sources by the end of 2026. Mobile game acquisition costs remain high, and the market is trending toward smaller, ad‑native titles that can monetize efficiently. Steam releases are accelerating, with 2025 already breaking records for new titles, indicating a shift toward faster, lower‑budget development cycles. Overall, the report underscores a digital landscape increasingly shaped by AI‑driven content and streamlined monetization models across mobile, web, and gaming sectors.

market-forecast monetization ai+3

Sensor TowerDec 2025

Report

Square Enix Next: That Excitement Once Again

Square Enix’s recent performance review exposes a persistent decline in revenue growth and profitability over the past three years, with operating income falling 32 % and ROE dropping 61 %. The downturn is driven primarily by weak margins in both high‑definition (HD) and small‑dungeon (SD) game segments, excessive portfolio fragmentation, sub‑optimal product design and promotion, and escalating development costs. While the MMO licensing arm remains the sole growth driver (+11 %), overall gaming revenue has slipped, with HD and SD titles declining 4 % and 5 % respectively. Operating margins for these segments hover around 35–40 %, noticeably higher than the industry average of 28 % but still lagging behind competitors, indicating inefficiencies that are not being adequately addressed. The company’s medium‑term “Reboots” plan offers only high‑level directions without concrete key performance indicators or quantitative targets. Critical gaps include a lack of clear business‑portfolio strategy, insufficient disclosure on non‑core business rationales, and no defined mechanisms for monitoring progress or maximizing shareholder value. Capital allocation disclosures are similarly weak: cost‑of‑capital calculations, ROE and ROIC targets, and hurdle rates are absent, while share‑buyback authorization remains unused despite a sharp price decline. SG&A costs exceed peer norms by 5–6 ppt, driven largely by an oversized sales force, further eroding profit margins. Geographically, SD game revenue is almost entirely domestic; the Japanese market has contracted 2 % annually since 2020, and overseas growth remains only 3 %. The company’s global SD strategy is inert, with a 7 % overseas expansion rate falling short of projected growth and flagship titles such as *FFVII Ever Crisis* deriving 70 % of revenue from Japan. Non‑core Amusement and Publishing businesses are undervalued, with a significant conglomerate discount relative to peers and declining sales and margins. Limited cross‑synergy between game and publishing arms further hampers value creation. In summary, Square Enix faces a multifaceted challenge: declining core game performance, weak strategic direction and KPI setting, high SG&A costs, and an underperforming non‑core portfolio. Addressing these issues through tighter cost control, clearer performance metrics, aggressive overseas expansion, and potential portfolio optimization is essential to restore corporate value and achieve sustainable growth.

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InvestGameDec 2025