Video Game Insights

The game engine landscape is undergoing a significant structural shift, characterized by the decline of proprietary in-house technology in favor of established third-party platforms. While custom engines historically dominated the industry, their market share has eroded substantially over the last decade, falling to approximately 13 percent of new releases by 2024. This transition is driven by the increasing complexity of modern development, which makes the maintenance of internal engines cost-prohibitive and less efficient compared to the immediate, high-fidelity capabilities offered by public alternatives.

Unreal Engine has emerged as the primary beneficiary of this trend, particularly within the AAA segment. Following the release of Unreal Engine 5, the platform has successfully reclaimed market share lost during the pandemic, becoming the preferred choice for large-scale, high-budget productions. Conversely, Unity maintains a dominant position in terms of total volume of games released, particularly among indie and smaller developers, though it faces increasing competition from smaller engines like Godot, which has seen notable growth since 2020. Despite Unity’s high release volume, Unreal Engine and custom AAA engines continue to command a larger portion of total units sold, underscoring their prevalence in high-performing commercial titles.

The analysis relies on data from over 13,000 games released on Steam, utilizing proprietary estimation algorithms and tagging methodologies to categorize engine usage by game size, genre, and unit sales. The findings indicate that while the choice of engine is often dictated by project scale—with smaller titles favoring Unity and larger, graphics-intensive projects gravitating toward Unreal Engine—the industry is moving toward a standardized ecosystem. As studios weigh the benefits of third-party support, talent accessibility, and advanced graphical features against the loss of proprietary control, the reliance on external engines is expected to continue its upward trajectory through 2030.

Steam wishlists serve as a critical metric for predicting commercial success in the video game industry, functioning as a primary indicator of pre-launch momentum. Data analysis reveals that wishlist distribution is highly top-heavy, with a significant majority of games launching with fewer than 10,000 wishlists, while only a small fraction of titles achieve the 100,000-plus threshold required to reliably forecast a breakout performance. There is a strong 70% correlation between pre-launch wishlist counts and first-month unit sales, particularly for titles that surpass the 100,000-wishlist milestone.

Genre-specific trends highlight that action and adventure titles consistently generate the highest levels of pre-release buzz, often benefiting from the brand equity and marketing budgets of AAA and AA publishers. Conversely, casual and MMO titles frequently rely on post-launch engagement, such as live updates and community building, rather than pre-release wishlist accumulation. Regardless of genre, the timing of a Steam page launch is vital; top-performing games typically establish their presence six to twelve months before release, utilizing a steady stream of trailers and development updates to build and maintain audience interest.

The findings are based on an analysis of games launched on Steam from March 2024 onwards, utilizing proprietary estimation models and industry data. The research emphasizes that while wishlists are not a guarantee of success for every title, they act as a essential barometer for market interest. For developers and publishers, the data underscores that early visibility and sustained marketing efforts are necessary to reach the wishlist tiers that statistically correlate with long-term commercial viability.

The Big Game Engine Report 2025 examines the shifting landscape of game development technology, focusing on the transition from proprietary in-house tools to third-party public engines. The analysis covers over 13,000 games released on Steam, tracking market share trends from 2012 through 2024 with projections reaching 2030. Findings are based on proprietary estimations and tagging methodologies that categorize engines into three tiers: dominant public engines (Unity and Unreal), smaller public engines (Godot, GameMaker, RPG Maker), and custom in-house engines used by major AAA studios.

The central thesis posits that the era of dominant in-house engines is ending as major studios increasingly adopt Unreal Engine 5 to reduce maintenance costs and access a broader talent pool. While custom engines powered over 70% of Steam releases in 2012, they accounted for only 13% of releases in 2024. In terms of commercial performance, custom engines still represent 42% of units sold, but this is the first time they have fallen below the 50% threshold. Unreal Engine has capitalized on this shift, particularly in the AAA space, while Unity remains the leader in sheer volume, powering 51% of all 2024 releases.

The data highlights a clear correlation between game size and engine choice. Unity dominates the "Tiny" and "Small" categories (under 100k units), whereas custom engines and Unreal Engine control the "Large" segment (over 1M units). Emerging trends show Godot as the fastest-growing smaller engine, driving over two-thirds of the growth in its tier since 2020. Looking forward, the industry expects a continued migration toward Unreal Engine 5, with Unity projected to face increasing pressure from open-source alternatives like Godot in the indie sector while struggling to gain further ground in the high-end AAA market.

The 2024 Global Indie Games Market Report by Video Game Insights analyzes the significant growth and evolving structure of the independent gaming sector on Steam from 2018 through September 2024. The central thesis posits that indie games have reached a historical milestone, with their revenue share doubling since 2018 to match the combined earnings of AA and AAA titles for the first time. This surge is largely attributed to the rise of "Triple I" games—high-budget independent projects with teams of over 50 people—which now account for more than half of all indie revenue.

Key findings highlight that 2024 was a record-breaking year driven by exceptional hits like Black Myth: Wukong and Palworld, which sold 20.6 million and 20.1 million units respectively. The data reveals an increasing concentration of wealth at the top of the market; excluding these two titles, all other 2024 indie releases combined generated less revenue than Black Myth: Wukong alone. Furthermore, the report identifies a trend toward studio maturity, noting that second and third releases typically outperform debut titles. Successful developers like Pocketpair and Sunlock Studios achieved massive hits only after releasing multiple previous games.

The scope of the analysis focuses on the Steam platform, segmenting the market into four categories: Triple I, Middle Market, Small Teams, and Hobbyists. While all segments saw a "boom" during the COVID-19 pandemic, the larger Triple I and Middle Market tiers have seen the most substantial long-term growth. Methodology involves proprietary algorithms and the Boxleiter method to estimate unit sales and gross revenue from public Steam data, adjusted for regional pricing and returns. The findings suggest that the traditional definition of "indie" is blurring as production qualities and budgets of top-tier independent games now rival those of major AAA studios.

The analysis evaluates the free‑to‑play (FtP) segment on Steam, highlighting its dominant share of player engagement and the increasing difficulty for new titles to break through. In 2023, FtP games accounted for 51 % of total hours played on the platform, despite premium titles comprising the majority of releases. Engagement is highly concentrated: the top 25 FtP titles generate 88 % of all FtP activity, the top 10 capture roughly 70 %, and the top five hold nearly 60 % of concurrent users (CCU). Counter‑Strike 2 and Dota 2 continue to lead the charts, with eight of the ten highest‑CCU games in 2023 being FtP, while only one premium title (Rust) appears in the list.

The market shows signs of compression as high‑quality premium and paid‑live‑service games erode FtP share. Between 2021 and 2024, premium titles priced $10‑$50 grew from 31 % to 37 % of total playtime, and flagship releases such as Elden Ring and Hogwarts have boosted the over‑$50 segment. Nonetheless, FtP titles remain older on average; the top ten FtP games have a mean age of seven years, and only two new entries (Call of Duty Warzone and Naraka: Bladepoint) have entered the top‑ten

Cooperative video games have emerged as a dominant force on the Steam platform, significantly overperforming relative to their total volume of releases. While only six percent of games launched in 2023 featured co-op mechanics, these titles accounted for thirty-six percent of all units sold. This trend has accelerated sharply in 2024, driven by massive breakout hits like Palworld and Helldivers 2. Market data indicates that Palworld alone represented nearly half of the forty million co-op units sold in the first half of 2024, illustrating a high concentration of success among top-tier titles.

The commercial advantage of cooperative play extends across the entire industry spectrum, from major publishers to small independent studios. A typical co-op game sells approximately 40,000 units on Steam, compared to just 5,000 units for non-cooperative titles. Even the bottom quartile of co-op games performs twice as well as their single-player counterparts. For larger publishers, the segment offers substantial scale, evidenced by over one hundred co-op titles surpassing five million lifetime unit sales. This consistent outperformance suggests that social mechanics provide a higher floor and a significantly higher ceiling for commercial viability.

The success of the genre is rooted in organic marketing and player psychology. Cooperative design naturally encourages word-of-mouth promotion, as players actively recruit friends to join their sessions. These games are characterized by high replayability and "memorable" moments that translate well to social media and live-streaming platforms. By creating shareable and streamable content, co-op games generate natural hype cycles that reduce the reliance on traditional advertising. Following a brief normalization period after the initial pandemic-driven surge, the current market trajectory confirms that social, team-based dynamics remain a primary driver of player engagement and revenue growth in the PC gaming sector.

The free-to-play (F2P) market on Steam represents a dominant but increasingly consolidated segment of the PC gaming industry. In 2023, F2P titles accounted for 51% of all player engagement hours on the platform, despite representing a small fraction of the total games available. This engagement is heavily concentrated at the top, with the 25 most popular titles capturing 88% of all F2P playtime. The market is characterized by significant stagnation among top performers; the average age of a top-ten F2P game is seven years, and only two new titles have successfully broken into and remained in the top ten over the last three years.

Geographically, the F2P ecosystem is driven by three "Tier 1" territories—the United States, China, and Russia—which collectively account for nearly 40% of the global F2P player base. Success in this segment typically requires catering to at least one of these major markets. However, the traditional F2P model is facing new competition from a rising "middle ground" of premium titles priced between $20 and $40. Recent hits like Palworld and Helldivers 2 demonstrate that paid games with live-service elements can successfully siphon engagement away from purely free titles by offering high-quality experiences with modern monetization structures.

The analysis utilizes data from the Video Game Insights platform, primarily measuring success through average concurrent users (CCU) and total hours played. The findings suggest that while the F2P market remains a massive engine for player engagement, the "winner-takes-all" nature of the segment makes it increasingly difficult for new entrants to displace established giants like Counter-Strike and Dota 2. Consequently, developers are finding success in hybrid models that combine upfront costs with long-term live-service support.

The global PC gaming market reached record heights in 2023, generating $9 billion in revenue from 580 million units sold on Steam. This performance represents a significant growth spurt following a period of stagnation between 2020 and 2022. The market was primarily driven by a strong slate of premium releases, particularly in the RPG genre, and benefited from a lagging supply of current-generation consoles. Despite nearly 14,000 games being released during the year, the market remains highly concentrated; the top 10 games accounted for 61% of total revenue, while the top 100 games captured 91% of the market share.

A notable shift in consumer preference occurred in 2023, as high-quality, story-focused premium titles without microtransactions outperformed live-service models. Success was not limited to major publishers, as several breakout hits were developed by small indie teams. However, financial success remains elusive for the vast majority of developers, with only 5% of new releases earning more than $100,000. While Action and Adventure remain the dominant genres, RPGs saw the most significant growth, whereas Simulation and MMO categories lost market share.

The outlook for 2024 suggests a temporary contraction due to a lighter release schedule and increased competition from discounted consoles and subscription services. However, long-term forecasts through 2028 remain positive, driven by the continued expansion of Steam’s global user base and the migration of formerly console-exclusive titles to PC. Growth is expected to be fueled by rising average prices for both AAA and indie titles rather than rapid increases in unit sales. Data for these findings was derived from proprietary algorithms and the Boxleiter method, which estimates sales and revenue based on Steam reviews and public platform metrics.