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Video Games in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Video Games Market Research Report | NAICS NN003 | May 2017

Level up: Demand for video games will increase as disposable income grows

IBISWorld’s Video Games market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
Annual Growth
Industry Threats & Opportunities
  • The emergence of low-cost games for mobile devices may temper future growth opportunities for the industry
  • Publishers are increasingly turning to downloadable content to supplement their games
  • New games and consoles are expected to reflect the changing demographic of video game players
  • ... purchase to read more

Industry Analysis & Industry Trends

Over the five years to 2017, demand for the Video Games industry has remained strong, as consumers increasingly adopt new consoles and games. Furthermore, the market for video games will extend beyond young males, as more women and consumers of all ages turn to the industry for entertainment. Revenue growth will continue to be bolstered by new technologies and online games, with more systems providing internet connectivity. During the next five-year period, growth will remain steady, as industry operators continue expanding their internet-enabled services and improve on their consoles. Additionally, growth in mobile games will offer operators more revenue streams... ... purchase to read more

Industry Report - Industry Key Buyers Chapter

The Video Games industry has a low market share concentration, with the top four operators contributing 36.8% of total industry revenue in 2017. Higher concentration exists within each type of business, though, as GameStop dominates the retail market; Microsoft, Nintendo and Sony dominate the hardware market and Activision Blizzard and Electronic Arts (EA) dominate the software market. When it comes to producing and selling video games and consoles, reputation and brand recognition are essential (see Barriers to Entry). Breaking into the industry is extremely challenging when dealing with some of the behemoths that sit astride the peak of the video games world with strong consumer loyalty. Act.. ... 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 Time spent on leisure and sports in the Video Games industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Video Games Industry?

    The Video Games industry includes the broader operations of all video games components 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 softwareConsolesAccessoriesOnline games and software
    Industry Activities
    Developing video game software Publishing video game software Wholesaling video game softwareRetailing video game software Manufacturing video game software Retailing video game consoles Wholesaling video game consoles and accessoriesDeveloping video game accessories Retailing video game accessories Providing online game subscription services

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Time spent on leisure and sports
  • Consumer Confidence Index
  • Percentage of services conducted online
  • Trade-weighted index
  • Current Performance
  • Aging consoles give way to new iterations
  • Input devices
  • Used games
  • Subscription model and online content
  • Mobile gaming
  • Chart: Revenue Growth
  • Industry Outlook
  • New consoles continue to extend current generation
  • Decline of a giant and the subscription model
  • 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
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Advertising Agencies
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Local Freight Trucking
  • Products & Services
  • Physical games and software
  • Consoles
  • Online games and software
  • 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 45 years old
  • Women 18 to 45 years old
  • Men younger than 18 years old
  • Women younger than 18 years old
  • Men older than 45
  • Women older than 45
  • Chart: Major Market Segmentation for the Video Games Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    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
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Video Games Industry
  • Industry Globalization
    Major Companies
    Sony Corporation
    Microsoft Corporation
    Activision Blizzard Inc.
    GameStop Corp.
    Nintendo Co. Ltd.
  • Table: Sony Corporation - financial performance
  • Table: Microsoft Corporation - financial performance
  • Table: Activision Blizzard Inc. - financial performance
  • Table: GameStop Corp. - financial performance
  • Table: Nintendo Co. Ltd. - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Video Games Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Consumer Confidence Index (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    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, Wii and Xbox Kinect technology 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.

  • Why Buy this Report?
    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 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.

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