Market Analysis

The 2024 annual review presents a comprehensive assessment of Canada’s video‑game sector, emphasizing its expanding regulatory influence, economic contribution and strategic diversification. Central to the analysis is the successful negotiation of two key exemptions—removal of the industry from the Streaming Act levy and exclusion from the Online Harms Act—demonstrating the sector’s growing political clout. The accession of major global publishers, notably Epic Games, Roblox and Tencent, further amplifies the association’s reach and underscores Canada’s emergence as a hub for gaming innovation and talent.

A worldwide survey of 13 000 players across twelve nations reveals that 74 % of Canadian gamers prioritize fun, while 43 % cite mental stimulation and 28 % value exploration, highlighting a multifaceted consumer motivation profile that informs product development and marketing strategies. High‑impact initiatives such as exclusive Unreal Engine‑driven studio tours in Montreal, the second Geneva Day of the Global Video Game Coalition securing United Nations‑level recognition, and the Ottawa “Jeux vidéo sur la Colline” summit collectively reinforced the sector’s cultural, social and economic significance, quantified at a $5.5 billion contribution to national GDP.

Financially, the Canadian Entertainment Software Association achieved its first full pre‑pandemic budget while operating virtually, generating cost efficiencies that funded supplemental programs including “Le pouvoir du jeu” and an overhaul of parental‑control video resources. Membership growth, driven by the inclusion of Roblox and Epic Games, propelled revenues beyond forecasts and validated the association’s diversification strategy.

Looking ahead, the organization intends to retain its virtual‑first operating model and continue advocacy for regulatory, economic and security policies that sustain industry expansion, while deepening diversity, equity and inclusion efforts through partnerships such as QueerTech and a cross‑industry equity working group. The report thus positions Canada’s interactive entertainment ecosystem as a resilient, globally connected, and policy‑savvy contributor to the broader digital economy.

The 2024 Canadian video‑game sector is presented as a mature, high‑value industry that contributes $5.1 billion to national GDP and sustains 34 010 full‑time‑equivalent positions, with an average compensation of $102 000. The analysis underscores a pronounced geographic concentration, as 83 % of the 821 operating studios are located in Ontario, British Columbia and Québec, reflecting the continued clustering of talent and infrastructure in these provinces.

Compared with 2021, the total number of firms declined by 9 %, a contraction driven largely by the disappearance of micro‑enterprises, while larger studios either remained stable or expanded. Ownership patterns have shifted markedly, with foreign‑owned companies now accounting for 88 % of total employment, indicating deepening international integration and reliance on external capital.

Industry spending reached $4.8 billion in 2024, an 11 % increase over the 2021 level, and labour costs now represent 72 % of total expenditures, up from roughly 66 % three years earlier. This rising labour share highlights the sector’s intensifying dependence on skilled human capital.

The study classifies studios into eight size categories—from solo developers to firms with more than 200 employees—using survey‑derived averages to estimate spending, revenue and wage structures across each segment. By scaling these averages to the number of firms in each tier, the analysis provides a nuanced picture of economic activity across the full spectrum of the industry.

Overall, the findings portray a Canadian video‑game ecosystem that is consolidating around a few large, often foreign‑owned players, expanding its overall financial outlays, and increasingly reliant on a highly paid workforce, all within a geographically limited core that dominates national output.

The analysis evaluates Italy’s esports ecosystem in 2024, aiming to map its audience composition, revenue structure, and strategic priorities for industry participants. Findings reveal a core fan base of 7.3 million individuals, of whom 3.3 million regularly watch esports content. This audience skews younger, resides in urban centres, is predominantly male, and is more likely to hold full‑time employment than the broader gaming population, indicating a segment with disposable income and commercial appeal.

Revenue streams are heavily weighted toward advertising and sponsorship, with 80 % of organisations citing these as primary income sources and accounting for roughly one‑third of total market revenue. This concentration underscores the sector’s dependence on brand partnerships and suggests that monetisation beyond traditional media rights remains limited.

The study draws on a balanced consumer survey of approximately 1,000 Italian internet users aged 16‑65, conducted in September‑October 2024, and a complementary questionnaire administered to an equal number of esports‑industry stakeholders in partnership with IIDEA. All quantitative data are rounded, sourced from publicly available information, and have not undergone independent verification.

Overall, the Italian esports market emerges as a youthful, urban‑centric niche with significant advertising potential, yet its financial model remains narrowly focused. Stakeholders are likely to continue prioritising sponsorship acquisition and related promotional activities to capitalise on the identified demographic strengths.

1. Italian Video Games Market...............................10 2. Italian Players ..................................................16 3. Italian Video Games Industry ............................23 4. Responsible Gameplay ......................................32 5. IIDEA ...............................................................38 • Total turnover of the sector.

The live‑streaming landscape in 2024 was defined by rapid platform diversification and the rise of cross‑platform broadcasting, which together reshaped how audiences consume both gaming and non‑gaming content. Kick surged by 176 % to deliver 1.7 billion hours of viewership, propelled by marquee events such as the 1.4 million‑viewer “Stream Fighters 3.” New entrants from Korea, including Chzzk and SOOP Korea, contributed tens of millions of hours and helped elevate titles like League of Legends and Minecraft to the top of platform charts. Simulcasting became the dominant distribution model, generating concurrent‑viewer gains ranging from 148 % to 491 % for leading creators, while the majority of top streamers now broadcast on multiple services simultaneously.

Co‑streaming emerged as the primary driver of esports engagement, accounting for 44.4 % of all esports viewership and roughly 1.2 billion hours watched. Signature events such as the Twitch Rivals “Hunt & Run” derived nearly all of their watch time from co‑streams, prompting organizers and brands to allocate substantial budgets toward high‑profile personalities who add commentary and community interaction. This collaborative format has become a cornerstone of audience growth and monetisation strategies across the sector.

Creator influence extended beyond traditional gaming, with Kai Cenat’s 185 million‑hour IRL marathon on Kick and IShowSpeed’s 47 million‑hour output highlighting the power of individual personalities. The year also saw a surge in VTuber viewership, exemplified by Usada Pekora, and strong performance from legacy titles such as Dragon’s Dogma 2, which amassed

Mobile gaming is now the dominant segment of the global video‑games market, generating $98.7 billion in 2024, of which roughly two‑thirds ($65 billion) originates from Asian economies. The rapid expansion of smartphones, high‑speed connectivity, and localized content have driven this growth, positioning mobile titles as the primary source of interactive entertainment worldwide.

A pivotal shift is the emergence of direct‑to‑consumer (D2C) web shops as essential revenue channels for mobile developers. Awareness of these storefronts is extremely high, with 81 % of players recognizing them and 77 % having completed at least one purchase. Although only a small “whale” cohort—between two and six percent of the player base—accounts for 95 % of in‑app spending, this segment also delivers superior retention and lifetime value, underscoring its strategic importance for monetisation strategies.

Empirical case studies illustrate the financial upside of integrating D2C web shops. Titles such as Tilting Point’s Warhammer: Chaos and Conquest and Star Trek Timelines achieved revenue lifts of up to 50 % after adding web‑shop functionality, leveraging exclusive content, personalised offers and frictionless payment methods to stimulate repeat purchases. These findings suggest that developers who adopt low‑friction, web‑based commerce can capture a larger share of the whale segment while also expanding overall player spend.

Overall, the data indicate that the mobile gaming ecosystem is maturing into a highly concentrated market where a minority of high‑spending users drive the majority of revenue. Strategic investment in D2C web‑shop infrastructure and targeted offers for whales presents a clear pathway for developers to enhance monetisation, improve player retention, and sustain growth in an increasingly competitive global landscape.

The analysis projects global gaming revenue to reach approximately $205.7 billion by 2026, up from $106.8 billion in 2023, reflecting an average annual growth rate of 3.9 percent. Mobile and cloud gaming are identified as the primary engines of this expansion, with the mobile sector alone expected to generate $111.4 billion in spend and to be bolstered by record app‑download volumes—76.8 billion downloads across iOS and Google Play in the first half of 2023. Consumer spending surged by as much as 60 percent in early 2023 before stabilising within a –10 percent to +20 percent range for the remainder of the year, underscoring the volatility of post‑pandemic demand.

In the United States, women now comprise roughly half of the gaming audience and represent a significant portion of spending power, yet only 26 percent of studios report inclusive hiring practices and 18 percent provide diversity training. This disparity highlights a persistent gap between audience demographics and industry representation, even as iOS‑based role‑playing games alone generated about $1.33 billion in revenue during Q3 2023.

Growth is further driven by financial realignments, the emergence of metaverse, AR/VR, and cloud‑based experiences, and evolving consumer habits that favour direct‑to‑consumer commerce. A mobile‑gaming platform that enables web‑store sales has become a major revenue source, positioning service providers as essential partners for developers seeking funding, marketing, launch, and monetisation across multiple regions. Concurrently, a cultural shift toward greater gender diversity in executive, design, and development roles is expanding the industry’s creative talent pool, reinforcing the sector’s long‑term resilience and innovation potential.

The Web3 gaming market entered a phase of maturation in 2024, marked by a strategic pivot from rapid expansion to ecosystem stability. While new game announcements decreased by 36%, project discontinuations plummeted by 84%, signaling a more resilient landscape. Indie developers currently drive over 90% of new launches, though technical integration remains a significant hurdle, with only 34% of titles successfully incorporating blockchain infrastructure. To combat the inflationary failures of earlier economic models, the industry is shifting toward "Play-to-Airdrop" mechanics to foster more sustainable player engagement.

Geographically, the APAC region and the United States remain the primary hubs for development, collectively hosting the majority of active teams. Genre dominance continues to favor RPG, Casual, and Action titles, which also attract the bulk of stabilized venture capital funding. A notable shift in distribution is underway as Telegram emerged as a powerhouse platform, capturing 21% of new game launches, while the Epic Games Store expanded its Web3 portfolio to nearly 100 titles. This evolution in accessibility is mirrored by a technical migration toward Layer 2 and Layer 3 solutions, which now account for 57% of new game launches.

Infrastructure is becoming increasingly specialized, with 64% of new blockchains designed specifically for gaming. Although the Ethereum Virtual Machine ecosystem maintains its dominance, high-growth frameworks like Arbitrum Orbit and Immutable are driving a record number of migrations as developers seek more efficient environments. Despite a 200% surge in token launches, investors maintain a conservative outlook, prioritizing high-quality game content over foundational infrastructure. This growth occurs against a fragmented regulatory backdrop, where developers must navigate the rigorous enforcement of the U.S. SEC alongside more structured frameworks in Asia and the European Union.

The blockchain gaming sector is entering a phase of maturation characterized by a strategic pivot from speculative financial models toward high-quality, "fun-first" development. Player asset ownership remains the industry’s primary value proposition, cited by over 71% of professionals for four consecutive years. This shift is bolstered by the entry of traditional gaming giants such as Sony and Ubisoft, which provides necessary credibility to a field where 66.3% of practitioners still identify public misconceptions of scams as a major hurdle. While the industry faces a 42.7% decline in new hiring due to market uncertainty, professional sentiment remains resilient, with over 82% of workers intending to remain in the sector long-term.

Geographically, the industry is expanding its footprint into the Middle East and South America, while Asia and Latin America lead in the adoption of player-reward mechanics. Despite this global reach, the sector continues to struggle with demographic challenges, including a lack of gender diversity and a decline in younger talent entering the workforce. Operationally, the most significant barriers to mainstream adoption are onboarding complexities and poor user experience, though the severity of these concerns has decreased significantly since 2023. Companies currently identify lack of funding and high user acquisition costs as their most pressing internal obstacles.

Looking toward 2025, the industry is moving toward "invisible" Web3 infrastructure to prioritize seamless gameplay over technical complexity. Emerging trends include the rise of fully onchain games, the integration of artificial intelligence for personalized experiences, and the use of social platforms like Telegram to simplify user acquisition. As environmental concerns continue to fade, the focus has shifted toward sustainable "play-and-earn" economies and the consolidation of fragmented infrastructure. This evolution suggests a transition toward a more integrated gaming ecosystem where blockchain serves as a foundational layer for digital property rights rather than a standalone marketing feature.

The 2024 performance marketing landscape for PC and console gaming is defined by a strategic shift toward high-engagement platforms and the integration of first-party data to combat rising acquisition costs. Meta and YouTube remain the dominant forces in media planning, appearing in 75% and 44% of campaigns respectively, while Twitch has emerged as the conversion leader with a 12% success rate. This recovery period is marked by a rebound in free-to-play retention to 46% and a significant evolution in platform utility. Notably, Reddit has transformed into a high-value retention hub following an overhaul of its advertising infrastructure, and Twitter (X) continues to serve as the primary conduit for reaching the PlayStation demographic.

The industry is increasingly moving toward automation and data-driven targeting to optimize creative assets and audience reach. AI-driven tools such as Google’s Performance Max and TikTok’s Performance Automation are becoming standard, while the utilization of first-party data has proven critical, yielding conversion lifts of up to 63% in Meta-based campaigns. These technological advancements are complemented by the continued growth of influencer marketing, which currently outperforms traditional ad networks with a 4.25% conversion rate and a robust 38.95% Day 7 retention rate.

Despite the effectiveness of creator-led activations, the sector faces logistical hurdles regarding contracting, key distribution, and return-on-investment analysis. To mitigate these complexities, marketers are adopting sophisticated attribution tools to unify performance metrics across paid media and influencer channels. This holistic approach allows for a more precise understanding of player behavior and engagement across the global PC and console segments, ensuring that marketing spend is directed toward the most authentic and high-retention audience segments.

The United States mobile gaming market maintained its position as a global leader in advertising activity during the first half of 2024. While the region ranks first globally in the total volume of app advertisers, it holds the second position for ad impressions, trailing only Southeast Asia. Despite this high ranking, the market shows signs of maturation and consolidation. The number of active advertisers grew by a marginal 0.25% year-over-year, while the proportion of new advertisers entering the space saw a significant decline of 29%. Similarly, while total ad purchases increased slightly by 0.46%, the volume of new ad creatives decreased by 12%, suggesting a shift toward established players and proven assets.

Shifts in genre performance and creative strategy define the current landscape. Puzzle games have overtaken Match games to claim the top spot in ad impression rankings, while the Sports and Shooting genres experienced the most rapid growth, rising six and four places respectively. Conversely, Hypercasual games saw a decline in impression share. Video ads remain the dominant creative format across all major genres, particularly in the Match category where they account for 87% of the ad mix. Playable ads remain a niche but specialized tool, utilized in 13% of Hypercasual campaigns compared to just 1% for Role-Playing Games.

Campaign longevity varies significantly by genre, reflecting different monetization and retention strategies. Sports games feature the most enduring campaigns, averaging 47 days, whereas Role-Playing Game campaigns typically run for only 23.6 days. To navigate this competitive environment, publishers are increasingly moving away from pure Hypercasual models toward Hybrid-casual structures, utilizing intelligent bidding and Target ROAS strategies to balance user acquisition costs with long-term profitability. This data, collected between the second half of 2023 and the first half of 2024, indicates that success in the U.S. market now requires a data-driven approach focused on retention and optimized media buying across both major platforms and programmatic SDK networks.

The Middle East and North Africa (MENA) gaming market, specifically within the Gulf Cooperation Council (GCC), represents a high-growth frontier projected to reach $3.24 billion in player spending and 38.9 million gamers by 2028. This expansion is fueled by 96% internet penetration, high per capita income, and substantial government investment. Despite Arabic being the fifth most spoken language globally, a significant supply gap persists, as only 3.5% of Steam titles are currently localized for the region. This disparity exists even though 41% of regional gamers prioritize localized titles and over 50% highly value content tailored to their linguistic and cultural background.

Successful market entry demands a sophisticated approach to localization that transcends literal translation. Technical execution must account for right-to-left user interface formatting and complex cursive script rendering to avoid the legibility errors that have plagued previous major releases. Strategically, developers should utilize Modern Standard Arabic for text while employing regional dialects for voice-overs to enhance immersion. Culturalization is equally critical, as 40% of players are more likely to recommend games that include accurate religious considerations and regional festivals. Conversely, 27% of players will abandon a title if it relies on inaccurate stereotypes or disrespectful portrayals, highlighting the reputational risks of superficial localization.

Case studies indicate that deep culturalization can lead to exponential growth, with some titles seeing their MENA-based revenue and daily active users jump from 3% to 80% of their global total within months. Achieving these results requires integrating regional voice talent, ensuring historical accuracy, and leveraging local influencers for community engagement. To navigate these sensitivities and technical requirements effectively, international developers benefit most from partnering with regional experts. Such collaborations ensure that games resonate authentically with Arabic-speaking audiences, transforming a title from a foreign product into a culturally relevant experience.