Video Game Software Market Report 2025

The video game software market size has grown rapidly in recent years. It will grow from $269.01 billion in 2024 to $304.33 billion in 2025 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period can be attributed to in-game purchases and freemiums, live streamers and gaming influencers, rise in smart phone users and rise in disposable income.

The video game software market size is expected to see rapid growth in the next few years. It will grow to $497.57 billion in 2029 at a compound annual growth rate (CAGR) of 13.1%. The growth in the forecast period can be attributed to increasing use of internet, shifting preference towards digital games, cross-platform publishing and play, technologically advanced platforms, and increasing gamers involvement. Major trends in the forecast period include integrating AR and VR technologies, focusing on in-game advertising, providing free access to games with certain main features in paid versions, offering game software services on the cloud with pay-per-usage payment models, offering streaming video game services, and invest in developing new as well as updating existing software, which is compatible with latest gaming consoles.

The video game software market has been primarily driven by rapid expansion in emerging markets during the forecast period. For example, in February 2024, the UK’s Office for National Statistics reported that the UK's GDP was projected to grow by 0.1% in 2023, following a robust increase of 4.3% in 2022. The recovery of commodity prices after a notable decline in the historic period is also expected to support market growth. Developed economies are anticipated to experience stable growth throughout the forecast period, while emerging markets are projected to expand at a slightly faster rate than developed markets. Stable economic growth is expected to lead to increased investments in end-user markets, thereby driving market growth during the forecast period. Thus, rapid growth in emerging markets will support the expansion of the video game software market.

The rising number of gamers is expected to further stimulate growth in the video game software market. The gaming population includes individuals who actively participate in playing video games. Video game software is central and multifaceted within the video game industry, acting as the foundation for developing, operating, and delivering interactive gaming experiences to players. For instance, in August 2024, Uswitch Limited, a UK-based price comparison service, projected that the number of online gamers in the UK would reach 11.56 million by 2027, reflecting a 6.64% increase from 10.84 million in 2023. Consequently, the expanding gaming population is propelling the growth of the video game software market.

Major players in the video game software market are strategically focusing on innovative solutions, such as the establishment of game development studios, to enhance their market position and profitability. Game development studios are responsible for the design, development, and release of video games across various platforms. For instance, in November 2022, Indium Software, a US-based Digital Engineering services company, launched iXie, an end-to-end game development studio offering a comprehensive range of gaming services top video game companies globally. iXie is poised to enter the gaming-as-a-service market, showcasing holistic competencies in game design and development.

In January 2022, Microsoft Corporation, a US-based technology company, announced its intent to acquire Activision Blizzard Inc. for $68.7 billion. This strategic move is expected to accelerate Microsoft's growth in the gaming business across mobile, PC, console, and cloud platforms, while also providing foundational elements for the metaverse. Activision Blizzard Inc., a US-based video game holding company, stands as a key player in the industry.

Major companies operating in the video game software market include Tencent Holdings Ltd., Nintendo Co.Ltd., Sony Corporation, NetEaseInc., Microsoft Corporation, Activision BlizzardInc., Electronic Arts Inc, Ubisoft Entertainment SA, Square Enix Holdings Co.Ltd., Konami Holdings Corporation, Nova Gaming Ventures Private Limited, TA Games Studio, Virtuos Holdings Pte. Ltd., Elex Technology Co. Ltd., Zeus Interactive Co. Ltd., Beijing Babeltime Technology Co. Ltd., Happy Elements Technology (Beijing) Limited, Shanghai Everstar Online Entertainment Co. Ltd., 2Pi Interactive, 99Games, Apar Games, Dhruva Interactive, CreatioSoft, Sega Sammy Holdings, Bandai Namco Holdings, BEETSOFT Co. Ltd., Rikkeisoft, Wizcorp, CoolGames, Tinhvan Outsourcing Jsc. (TVO), Playsoft Game, Supercell, Gameloft, Ronimo Game, Travian Game, Asobo Studio, Engine Software, Frontier Developments plc, Keywords Studio, Sumo Digital Team17 Digital Limited, Codemasters, XSEED Game, 22cans Ltd, 4J Studios Limited, Blitz Games Studios Limited, BossAlien, Climax Studios, Curve Digital Limited, Rockstar North Limited, Sports Interactive Limited, Criterion Games, HeroCraft, Brainy Studio, BUKA Entertainment, Factory Online, Ambidexter LLC, Mail.Ru Group, Alawar Entertainment, Nival, GSC Game World, Action Forms, Meridian'93, Elephant Game, Gaijin Entertainment, Novosoft, Alderac Entertainment Group, Arc Dream Publishing, Evil Hat Productions, Valve Corporation, Etermax, Bamtang Game, Squad, Iguanabee, AOne Game, Pomelo Game, Wixel Studios in Lebanon, Nezal Entertainment in Egypt, UAE-based Tahadi Games, Game Power 7, Gameguise.

Asia-Pacific was the largest region in the global video game software market in 2024. North America was the second largest region in video game software market. The regions covered in the video game software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the video game software market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The video game software market includes revenues earned by entities by providing design, documentation, installation and support services, and producing and distributing video games. This also includes companies solely involved in designing and developing or publishing only. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

Video game software includes the programs and applications used to create, manage, and improve interactive video games. This software encompasses development tools, graphics and animation features, audio integration, multiplayer functionalities, game engines, and quality assurance tools, all of which enable developers to craft engaging and high-quality gaming experiences.

The primary types of video game software encompass browser games, PC games, smartphone/tablet games, and console games. A browser game is one that is played online using a web browser over the internet. These games span various genres, including action, adventure, role-playing, simulation, strategy, sports, and others, catering to both male and female end users.

The video game software market research report is one of a series of new reports that provides video game software market statistics, including video game software industry global market size, regional shares, competitors with a video game software market share, detailed video game software market segments, market trends and opportunities, and any further data you may need to thrive in the video game software industry. This video game software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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