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Video Games in the US Industry Data and Analysis
The emergence of free-to-play games and fifth-generation consoles has provided steady revenue within the video game industry. However, since 2021, current-generation consoles have entered the mature life cycle and console sales have pushed down from 2022 to 2024. Despite the continued popularity of mobile gaming and AAA franchises, many markets within the industry await next-generation releases and have expressed a willingness to hold off on purchasing many games and consoles in the meantime. Consequently, revenue growth has stalled over the past five years, decreasing at a CAGR of 2.6% to $114.4 billion through 2026. Revenue has rebounded in 2025, though and is set to creep up by 3.2% in 2026 with the release of the Nintendo Switch 2 and the anticipated release of Grand Theft Auto VI.
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What's included in this industry analysis
IBISWorld's research coverage on the Video Games industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.
About this industry
What's this industry report about?
The Video Games industry in the United States operates under the NAICS industry code OD6589. The Video Games industry includes the broader operations of all video games industries in the United States. Gaming consoles, games made for those consoles and games produced specifically for personal computers make up the retail segment. The development and manufacturing of games, consoles and accessories also constitute a notable share of the market. Moreover, growing revenue from online gaming subscriptions complements industry products. Related terms covered in the Video Games industry in the United States include massively multiplayer online game (mmog), console, controller, aaa (triple-a) game and downloadable content (dlc).
What's included in this industry?
Products and services covered in Video Games industry in the United States include Physical games and software, Consoles and Accessories.
What companies are included in this industry?
Companies covered in the Video Games industry in the United States include Activision Blizzard, inc. and Electronic Arts Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Video Games industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Video Games industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Video Games industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Video Games industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Video Games industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Video Games industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Video Games industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Video Games industry in the United States.
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Frequently Asked Questions
What is the market size of the Video Games industry in the United States in 2026?
The market size of the Video Games industry in the United States is $114.4bn in 2026.
How many businesses are there in the Video Games industry in the United States in 2026?
There are 55,161 businesses in the Video Games industry in the United States, which has grown at a CAGR of 4.2 % between 2021 and 2026.
How may import tariffs affect the Video Games industry in the United States?
The Video Games industry in the United States is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Video Games industry in the United States?
The Video Games industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Video Games industry in the United States grown or declined over the past 5 years?
The market size of the Video Games industry in the United States has been declining at a CAGR of 2.6 % between 2021 and 2026.
What is the forecast growth of the Video Games industry in the United States over the next 5 years?
Over the next five years, the Video Games industry in the United States is expected to grow.
What are the biggest companies in the Video Games industry in the United States?
The biggest companies operating in the Video Games industry in the United States are Activision Blizzard, inc. and Electronic Arts Inc.
What does the Video Games industry in the United States include?
Developing video game software and Publishing video game software are part of the Video Games industry in the United States.
Which companies have the highest market share in the Video Games industry in the United States?
The company holding the most market share in the Video Games industry in the United States is Activision Blizzard, inc..
How competitive is the Video Games industry in the United States?
The level of competition is high and steady in the Video Games industry in the United States.
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