Video Game Software Market
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Video Game Software Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In recent times, the market size of video game software has experienced swift expansion. Its growth is expected to increase from a value of $269.01 billion in 2024 to $304.33 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 13.1%. Factors contributing to growth during the historic period include in-game purchases and freemiums, the influence of live streamers and gaming influencers, an increase in the number of smartphone users, and a rise in disposable income.
Video Game Software Market Size Forecast: What’s the Projected Valuation by 2029?
The market size of video game software is presumed to experience a quick expansion in the forthcoming years. The projection is a growth to $497.57 billion by 2029, with a compound annual growth rate (CAGR) of 13.1%. The surge during the forecasted period can be credited to factors like the escalating usage of the internet, a shift towards digital games, the advent of cross-platform publishing and play, technologically innovative platforms, and the rising participation of gamers. The anticipated trends during this period are the integration of AR and VR technologies, emphasis on in-game advertising, the provision of free games with premium features in the paid editions, the proposal of game software services on a pay-per-use model in the cloud, the provision of video game streaming services, and the investment in the development of both new and existing software compatible with the latest gaming consoles.
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What Are the Drivers Transforming the Video Game Software Market?
The rapid expansion in emerging markets was the primary driver for the video game software market in the projected period. The Office for National Statistics, a governmental agency based in the UK, projected in February 2024, that the UK’s GDP would have seen a modest 0.1% growth in 2023, on the back of a solid 4.3% increase in 2022. The market’s growth is also anticipated to be boosted by the recovery of commodity prices following their substantial drop in the historical period. During the forecast duration, developed economies are also predicted to experience steady growth. Furthermore, the forecasted period is likely to see emerging markets grow slightly quicker than developed markets. Stable economic growth is anticipated to spur investments in end-user markets and, consequently, drive the market throughout the forecast period. Consequently, the video game software market is set to be propelled by the quick growth in emerging markets.
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What Long-Term Trends Will Define the Future of the Video Game Software Market?
Games as a Service refers to a software distribution technique where typically, a provider hosts a game application on a distant server, and customers can utilize it via the internet, a concept often termed as cloud gaming. Numerous game creators are offering their content via a subscription model, allowing customers to buy extra content or features using micro-transactions. Such features include novel items within the game, weapons, apparel, other player’s character gear, in-game currency, and rewards. This business approach provides a consistent income source for game companies rather than restricting the profit to single-time sales. Prominent companies providing games as a service encompass Activision and Blizzard Entertainment.
Which Segments in the Video Game Software Market Offer the Most Profit Potential?
The video game software market covered in this report is segmented –
1) By Type: PC Games, Browser Games, Smart Phone/Tablet Games, Console Games
2) By Genre: Action, Adventure, Role Playing, Simulation, Strategy, Sports, Shooter, Fighting, Racing, Other Genres
3) By Type Of Transaction: Physical, Online/Microtransaction, Digital
Subsegments:
1) By PC Games: Action/Adventure Games, Role-Playing Games (RPGs), Simulation Games, Strategy Games, Sports Games
2) By Browser Games: Casual Games, Multiplayer Online Battle Arena (MOBA) Games, Strategy Games, Puzzle Games
3) By Smart Phone/Tablet Games: Casual Games, Action Games, Role-Playing Games (RPGs), Strategy Games, Puzzle Games
4) By Console Games: First-Person Shooter (FPS) Games, Action/Adventure Games, Sports Games, Role-Playing Games (RPGs), Fighting Games
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Which Firms Dominate the Video Game Software Market by Market Share and Revenue in 2025?
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, Clima*x 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
Which Regions Offer the Highest Growth Potential in the Video Game Software Market?
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
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