Next level: The launch of next-generation video game consoles will support industry demand

The Video Games industry has experienced strong returns to spending on industry products during the latter half of the five-year period to 2018. While the emergence of low-cost games for mobile devices has slowed demand for other games and may continue to temper growth opportunities in the foreseeable future, industry revenue has picked up amid stronger sales in games, downloadable content (DLC), consoles and their corresponding products. Future growth expectations for the Video Games industry have been somewhat moderated as the understanding of the mobile gaming market becomes clearer. Since mobile games are sold at a much lower price compared with traditional console and PC games, their rise may foretell a slowdown of the video game market in the United States...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • IBISWorld anticipates future growth due to an expanding population and an increased percentage of Americans that play video games
  • Players may become less picky about the console system they use, changing consumer loyalty
  • The development of motion-capture software has the potential to lower production costs
  • Industry Report - Starting a New Business Chapter

    Those assessing the feasibility of starting up a new venture producing video game consoles may reconsider the investment after a closer look at the cost. The barriers preventing new entrants are prohibitive. The most recent entrant into the console segment was Microsoft Corporation, whose Xbox (released in 2001) was able to claw out a market share due to the massive financial support that tech giant Microsoft could put behind it. As Microsoft had several other profitable products, the company was able to take a loss on the Xbox. They were able to sell the new console below the cost of production to attract consumers away from other gaming consoles and to the new, high-tech product. This was crucial, as the cost of exposing the new technology to a global marketplace is enormous. Exi...purchase to read more.

    Additional Insights for the Video Games Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Video Games Industry are

  • Ability to quickly adopt new technology
  • Aggressive marketing/franchising
  • Downstream ownership links
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer Confidence Index in the Video Games industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Video Games Industry?

    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.

    Industry Products
  • Physical games and software
  • Consoles
  • Accessories
  • Online games and software
  • Industry Activities
  • Developing video game software
  • Publishing video game software
  • Wholesaling video game software
  • Retailing video game software
  • Manufacturing video game software
  • Retailing video game consoles
  • Wholesaling video game consoles and accessories
  • Developing video game accessories
  • Retailing video game accessories
  • Providing online game subscription services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer Confidence Index
  • Percentage of services conducted online
  • Trade-weighted index
  • Participation in sports

  • Current Performance
  • Aging consoles give way to new iterations
  • Subscription model and online content abound
  • Fortnite revolution
  • Mobile gaming
  • Chart: Revenue Growth

  • Industry Outlook
  • New consoles continue to extend current generation
  • Decline of the subscription model and rise of DLC
  • The advent of mobile gaming
  • Table: Video Games Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Video Games Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Advertising Agencies
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Local Freight Trucking

  • Products & Services
  • Online games and software
  • Physical games and software
  • Consoles
  • Accessories
  • Chart: Video Games Industry Products and Services Segmentation

  • Demand Determinants
  • Customer loyalty to die for
  • Catch and release
  • Playtime

  • Major Markets
  • Men 18 to 50 years old
  • Women 18 to 50 years old
  • Men younger than 18 years old
  • Men older than 50
  • Women older than 50
  • Women younger than 18 years old
  • Chart: Major Market Segmentation for the Video Games Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Development revenue
  • Profit moving online
  • Chart: Cost Structure Benchmarking – Sector vs Video Games

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Video Games Industry

  • Industry Globalization
    Microsoft Corporation, Nintendo Co. Ltd., Activision Blizzard Inc., GameStop Corp., Sony Corporation, Electronic Arts Inc.,
  • Table: Microsoft Corporation - financial performance
  • Table: Nintendo Co. Ltd. - financial performance
  • Table: Activision Blizzard Inc. - financial performance
  • Table: GameStop Corp. - financial performance
  • Table: Sony Corporation - financial performance
  • Table: Electronic Arts Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Video Games Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Video Games Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Consumer Confidence Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aaa (Triple-A) Game
  • Game released by a major publisher that has the full funding of the publisher behind its development, marketing and distribution; typically the next entry in a long-running, highly successful series.
  • Console
  • A machine developed as a mini-computer with the express purpose of playing games programmed and developed solely for that platform.
  • Controller
  • The primary means of operating video games since the inception of the industry; however, some consoles and peripheral technologies have offered the alternative of direct human interaction.
  • Downloadable Content (Dlc)
  • Add-ons to games that can be purchased and downloaded directly to consoles or computers.
  • Massively Multiplayer Online Game (Mmog)
  • A major new growth market for gaming, played via an online server where gamers around the world play with and against each other in real time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Video Games is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Video Games:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Video Games market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Video Games, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.