As 2024 concludes, the gaming industry reflects a year of steady growth, emerging technologies, and evolving market dynamics. From mobile gaming’s (waning?) dominance to the rise of Web3 gaming and the increasing role of artificial intelligence (AI), the landscape continues to transform, setting the stage for what’s to come in 2025. Here’s an in-depth look at how the industry has fared this year and what might shape its future.
The Games Industry in 2024
The global games industry experienced modest growth in 2024, with revenue increasing by 2% to reach $187.8 billion, according to Newzoo. Mobile gaming dominated with a 49% share of the market, showing a 3% year-over-year increase. However, PC gaming displayed steady, incremental growth, while console gaming saw a not so unexpected dip. These trends reflect both the maturity of established platforms and the cautious optimism shaping the industry’s future.
The industry’s growth trajectory over the past five years highlights several key shifts. The COVID-19 pandemic provided a significant boost in 2021, driving unprecedented levels of engagement and revenue. However, 2024’s figures reveal a stabilizing market, where companies must innovate to sustain growth in a competitive environment.
Mobile Gaming in 2024: A Mature Yet Fragmented Market
Mobile gaming remained the industry’s largest segment but faced challenges associated with market maturity. While the segment rebounded slightly after last year’s dip, a growing bifurcation highlighted disparities between large-scale developers and smaller studios.
Large publishers with extensive resources benefited from economies of scale, leveraging a wealth of first-party data, advanced analytics, and expansive marketing budgets to dominate user acquisition. Conversely, smaller studios faced rising costs and fewer opportunities to scale effectively. This divergence created a landscape of “haves” and “have-nots,” forcing mid-sized developers, especially, to be bought or pivot.
The absence of new traffic channels compounded by rising user acquisition costs intensified these challenges. Many developers increasingly explored direct revenue channels, such as web stores, to circumvent the 30% commission gatekeepers like Apple and Google impose. This strategy enabled some companies to retain more revenue, particularly among high-value users.
Another notable trend was the pushback against gatekeepers. The launch of Epic Games Store in the EU marked a significant milestone, offering developers an alternative platform for distribution. While its impact remains limited, it signals a growing movement toward a less duopolized mobile ecosystem.
PC & Console Gaming: Opportunities and Constraints
PC gaming continued its gradual growth, benefiting from increased accessibility through platforms like Steam Deck and advancements in distribution methods. Meanwhile, cross-platform development became more prominent, enabling mobile games to find a second life on PC – and allowing PC games to use mobile as a user acquisition channel.
Steam maintained its dominance as the primary marketplace for PC games, but Epic Games’ push for market share disrupted the status quo. Developers also increasingly adopted multi-platform launches to maximize reach, blurring the lines between PC and console gaming. This cross-pollination extended to game genres, with traditionally mobile-centric mechanics finding success on PC platforms.
Console gaming faced a less dynamic year, attributed to being between generational upgrades and fewer blockbuster releases. However, with highly anticipated titles like GTA 6 slated for 2025, the segment is poised for a resurgence. The cyclical nature of console sales certainly underscores the importance of key releases in driving hardware and software adoption.
Web3 Gaming: Quiet Progress Amid Skepticism
Web3 gaming underwent a phase of “quiet but meaningful progress.” Titles like Guild of Guardians and Off the Grid demonstrated that blockchain-based games could achieve both player engagement and market success. This normalization suggests a future where blockchain elements seamlessly integrate into gaming experiences, potentially making debates about Web3 a thing of the past.
While Web3 gaming remains somewhat polarizing, developers focused on creating fun, engaging experiences rather than emphasizing the underlying technology. Events like the GAM3 Awards showcased Web3 titles in a venue full of excited gamers – as opposed to crypto enthusiasts – signaling their growing acceptance within the mainstream industry. Additionally, as crypto markets stabilized, the reduced volatility encouraged more developers to experiment with blockchain features such as player-owned economies and tradable in-game assets.
AI, Emerging Tech, and Macro Factors in Gaming
AI continued to disrupt the gaming industry in 2024, impacting everything from game development to marketing strategies. Tools powered by AI enhanced creative processes, user acquisition efficiencies, and data analytics, laying the groundwork for more personalized and scalable gaming experiences.
On a broader scale, macroeconomic factors and regulatory changes also played significant roles. The shift toward deregulation and potential consolidation among gaming companies under a new U.S. administration could reshape the competitive landscape, while looming issues like the TikTok ban and evolving antitrust cases keep the industry on edge.
Predictions and Expectations for 2025
Looking ahead, 2025 promises to be a pivotal year. Key developments to watch include:
- Mobile Gaming: Further consolidation and continued efforts to diversify revenue streams beyond app store dependencies.
- With user acquisition costs continuing to rise, mobile developers will need to explore creative avenues for growth. This could include partnerships with telecom providers, leveraging alternative app stores, and integrating social commerce into gaming experiences. Consolidation will likely accelerate as mid-sized studios struggle to compete, leading to a more polarized market landscape.
- Emerging markets may play a crucial role in sustaining growth, particularly in regions like Southeast Asia and Africa, where mobile penetration continues to rise.
- PC Gaming: Growth driven by performance marketing innovations and cross-platform strategies.
- Developers are expected to adopt more sophisticated performance marketing techniques, leveraging AI-driven insights to optimize campaigns. This shift could bridge the gap between traditional brand-driven approaches and data-centric strategies seen in mobile gaming.
- Cross-platform play will continue to gain traction, with titles designed to provide seamless experiences across PC, console, and mobile devices. This will further expand the reach and monetization potential of PC games.
- Console Gaming: A potential banner year anticipated with major releases like GTA 6.
- The release of GTA 6 is poised to reinvigorate the console segment, driving both hardware and software sales. Other blockbuster titles, coupled with next-gen console updates, will create a wave of excitement among consumers.
- Subscription services such as Xbox Game Pass and PlayStation Plus will play a critical role in retaining users and providing value in a competitive market.
- Web3 Gaming: Wider adoption as blockchain elements become less polarizing.
- Developers will increasingly integrate blockchain features in subtle, gameplay-enhancing ways rather than making them the focal point. This could include player-owned economies, tradable in-game assets, and decentralized marketplaces.
- Regulatory clarity around cryptocurrencies and NFTs may encourage more investment in the Web3 gaming sector, leading to higher-quality titles and broader acceptance.
- AI’s Evolution: Deeper integration into game design and operational workflows.
- AI is expected to revolutionize game development by automating routine tasks, enabling developers to focus on creativity and innovation. From procedural content generation to real-time player behavior analysis, AI will enhance both efficiency and personalization.
- In marketing, AI tools will help identify niche audiences and tailor campaigns with unprecedented precision, driving higher engagement and ROI.
- Regulatory Shifts: The potential impact of deregulation on mergers, acquisitions, and industry consolidation.
- A deregulated environment may open the floodgates for mergers and acquisitions, particularly among mid-sized studios looking to scale or diversify their portfolios. However, this could also lead to concerns about monopolistic behavior and reduced competition.
- Policymakers’ stance on data privacy, digital rights, and cross-border regulations will shape the global gaming landscape, influencing everything from user acquisition strategies to monetization practices.
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