The State of Video Gaming in 2025

Matthew Ball

Research

224 Pages

Matthew Ball’s annual presentation on the state of video gaming covers the end of the 2011–2021 growth wave, the mobile marketplace, AR/VR projections, console/PC market growth & more.

Key Takeaways

Growth stagnation: Post-2021, gaming revenue declined by 3.5% in 2022, with only modest recovery by 2024.
Layoffs and closures: Over 34,000 industry layoffs occurred, with numerous studios shutting down due to funding shortages and market saturation.
PC gaming resilience: PC gaming revenue grew by 20% since 2021, outperforming consoles due to factors like broader game libraries and backward compatibility.
Console market challenges: Current-gen consoles sold 7 million fewer units compared to previous generations, indicating a slowdown in console adoption.
Mobile gaming shifts: U.S. mobile gaming spending rebounded to $28 billion in 2024, surpassing the previous record set in 2021.
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