Trends in Video Game Industry 2024 and Forecast for 2025

Trends in the video game industry continue to change at breakneck speed. The forecast for 2024–2025 comprises new trends that are set to impact all segments of the gaming sphere—from mobile gaming to AR and VR. These changes will influence how games are created, sold, and received.

In this article, we’ll break down the key trends and technologies that will help you navigate the world of video games like a pro.

Six global gaming trends

Here are the key points according to data from Newzoo, which are worth bearing in mind if you aim to create a successful game in 2024.

  • Cross-platform releases

Titles available on multiple platforms, especially on PC, continue to lead the pack. In 2024, the number of PC gamers is expected to grow to 908 million, which is 3.9% higher than last year. Income from PC releases rose to $43.2 billion, which makes up 23% of the entire market.

Source: Newzoo’s free Global Games Market Report 2024 

  • Mobile games: an enormous segment of the market

With an income of $92.6 billion, mobile games account for 49% of the overall gaming market in 2024. This segment is witnessing the most rapid growth in the Middle East and Africa, rising to 8.2% per year. Thanks to new regulations, mobile platforms are also performing well in Europe and Asia.

Source: Newzoo’s free Global Games Market Report 2024

  • Early access and community engagement

Projects with early access show high player engagement. One such case is Baldur’s Gate III. An early-access version of the game was released in 2020, with the full game coming out in 2023. Over this period, the developers were able to gather a lot of feedback and gauge the project’s relevance among the community. As of 2024, over 5% of new releases use the early-access strategy.

  • Generative AI

2024 has seen more developers actively implement generative AI in their work. One use of AI is creating worlds and characters. AI helps expedite content creation, but also raises concerns about quality and originality. 

  • Growing competition in free-to-play (F2P) monetization

Games in this category rely on in-game purchases and microtransactions to generate most of their revenue. The total number of paying users has reached 1.50 billion, an increase of 5% compared to last year. However, only five new F2P titles have managed to draw in over 0.1% of play time, which indicates fierce competition and a market that’s not easy to penetrate.

To successfully develop F2P models, it’s important to focus on retaining players and developing effective monetization tactics. We recommend providing regular content updates, tempting in-game purchases, and active community engagement.

  • User-generated content (UGC) and a new generation of gamers

In 2024, developers need to retain veteran gamers as well as draw in the new generation. New games face stiff competition in the face of titans such as Fortnite and Roblox.

Research from the Global Gamer Study reveals that young people are the biggest gamers. 94% of Generation Alpha (the youngest group, born from the mid 2010s) play, compared to 86% of Gen Z (born during the late ’90s and early ’00s). 

Aside from just playing, modern gamers also watch streams and create content—this includes e-sports.

To create a successful game, it’s important to bear in mind different generations’ interests—how much time people of different ages spend playing, as well as what they like. User-generated content (UGC) demands particular attention. Players create content themselves, and this helps generate money. UGC’s future role is only going to grow.

The future of gaming devices

The evolution of gaming devices impacts the entire industry. Each device has its own possibilities and audience. Here are the key trends for 2024.

Console gaming: the new generation

PlayStation and Xbox are still market leaders. Here’s what they offer as of 2024:

  • 4k and 8k resolutions. Next-gen consoles support ultra-high resolution, making the images on screen almost photorealistic. Virtual worlds look alive and full of detail, which immerses players deeper.
  • Instant loading. Fast SSDs eliminate delays when loading levels, helping to make a slicker impression. Players no longer need to wait for levels to load.
  • Ray tracing. This technology makes lighting, shadows, and reflections more realistic. Thanks to their complex lighting effects, worlds with ray tracing take on a new depth.

Advice for developers: Use these opportunities to create complex visual effects and realistic worlds. However, in order to reach as many devices as possible, don’t forget to optimize for older console models.

PC gaming: power and innovation

The flexibility and power of PCs have always set them apart from other devices. This platform lends itself perfectly to the most complex games. What PCs bring to the table in 2024:

  • Monitors with high refresh rates (120Hz or higher) make animations more fluid, which is particularly important in fast-paced shooters.
  • Artificial intelligence makes NPCs smarter, improving their cooperation with players.
  • Cross-platform games allow users with different devices to play a video game together.

Advice for developers: Experiment with AI. Adaptive AI and NPCs who behave unpredictably can make your game more appealing, and a cross-platform game will attract a wider audience.

Virtual reality: immersion in new worlds

Virtual reality (VR) and augmented reality (AR) are rising in popularity thanks to the new generation of Oculus Quest and HTC Vive headsets. What these devices bring to the table:

  • Full immersion. Players feel like a part of the virtual world.
  • Novel controls. Players can use body movements to control a game.
  • AR games add digital elements to the real world.

Advice for developers: VR can cause nausea, so it’s crucial to ensure your game’s controls are user-friendly.

Mobile gaming: the rise continues

Mobile devices are the most readily-available gaming platform. Here’s what ensures their enduring popularity:

  • Powerful processors. Modern smartphones can support graphics on par with consoles and PCs. Developers can now create a deep and visually rich video game for mobile devices.
  • Big screens. Smartphones with large screens make playing more comfortable and visually appealing.
  • A vast audience. Most people have smartphones, which means that mobile gaming has an enormous potential audience.

Advice for developers: Develop complex yet user-friendly games. Optimize the interface for touch screens and make gameplay accessible for short sessions.

The scope of advertising in gaming

Advertising in video games has become one of the main sources of income for developers. In 2024, advertising models help finance development and keep the game accessible for a wide audience. Now, in-game ads not only support projects but also open up new opportunities for interacting with players.

The main types of advertising in video gaming:

  • In-game ads. These are banners and posters that users see while gaming. For instance, an ad could be placed on a race track or in the form of flyers on the streets of a game’s world. This is unobtrusive and doesn’t interfere with gameplay.
  • Sponsored content. Brands can finance exclusive content to be featured in any given game. This could take the form of special characters, missions, or in-game items that highlight their product.
  • Rewarded ads. Players are awarded bonuses for watching adverts. They may receive extra lives, coins, or the chance to progress faster. This is a good thing for both players and developers—more privileges for users and additional funding for developers.

Impact on development

Advertising models help developers create high-quality games without having to sell them to gamers right away. Revenue from ads makes it possible to create a free video game that’s available for millions of users. This helps maintain a larger playerbase, since the game can be downloaded for free with no need to pay for any content from the get-go.

For instance, Fortnite and PUBG bring in millions of dollars from advertising and selling in-game content. This income allows game developers to invest in improving graphics, expanding worlds, and creating new mechanics.

Despite the benefits, there are also drawbacks. Developers need to find a balance, and adverts should not get in the way. If there are too many ads or they’re overly intrusive, players may be driven away. It’s also important to ensure that ads are relevant—to ensure they don’t leave a poor impression, they should be related to players’ interests.

Future advertising models

Ads in video games continue to evolve. Mobile games, for instance, are entirely dependent on adverts and in-game purchases. And so, developers are seeking new, unobtrusive methods of integrating ads.

Streaming and e-sports: new advertising platforms

The growth of e-sports and streaming platforms has given rise to new advertising formats. Brands can now advertise themselves via gaming streams on Twitch, YouTube Gaming, and other platforms, allowing them to reach the millions of viewers who tune in.

Streaming platforms also allow for audience interaction. In addition to watching their favorite games, players can also participate in streams by leaving comments, voting, and even choosing events in real time.

The financial state of the gaming industry in 2024

The gaming industry continues to grow steadily and strengthen its position as one of the most profitable sectors in global economics. According to data from the Statista Market Forecast, 2024 will see the video gaming market reach a volume of 282.3 billion US dollars

Key indicators:

  • Industry growth. The compound annual growth rate (CAGR) for 2024–2027 is expected to reach 8.76%, which will bring the projected market volume 363.2 billion US dollars by 2027.
  • Number of players. In 2024, the number of users in the video gaming market will reach 1.472 billion, which indicates the audience’s continued expansion.
  • Market penetration. The penetration rate, or how many people have chosen a particular product over its analogs, will increase from 16.9% in 2024 to 18.5% by 2027, indicating an increase in the popularity of video games.
  • In-game advertising. This segment accounts for the largest share of the gaming market, with a volume of 109.6 billion US dollars as of 2024. Virtual ads are becoming developers’ and publishers’ key source of income.
  • Top earners. China’s gaming market is still the most expansive, and its revenue is predicted to reach 94.49 billion US dollars in 2024. This is due to the high demand and vast quantity of users in the region.
  • Average revenue per user (ARPU). In 2024, ARPU stands at 215.2 USD, which reflects a firm trend among users to spend money on gaming products and services.
  • Innovations. When it comes to developing innovative games, Japan is still number one in the industry. Introducing advanced technologies and unique game mechanics strengthen its position in the global market.

Regional trends from Newzoo’s Global Games Market Report 2024:

  • Asia and the Pacific. Accounting for 53% of all gamers, this is the biggest market. Thanks to the expansion of mobile networks and readily availability of smartphones, this region demonstrates a stable yearly growth of 4.0%.
  • Middle East and Africa. This region is experiencing the fastest growth in mobile gaming, the number of players rising by 8.2% year-on-year. The development of mobile technologies and growing Internet access contribute to this market’s growth.
  • Latin America. Accounts for 11% of the market and is growing at a yearly rate of 5.6%. This is linked to the widespread use of mobile devices and improved economic conditions.
  • Europe. This market is growing by 2.4% per year, with an emphasis on mobile and PC gaming.

Source: Research from the Global Games Market Report 2024

Forecast: what 2025 will hold for the gaming industry

We can take a look into the future to anticipate what trends will shape the gaming sphere in 2025. Here are our predictions:

  • The evolution of virtual and augmented reality

VR and AR technologies will become more available and more polished. We’ll see more releases that unite the real and virtual worlds. Developers should consider the potential of such technologies when creating new game mechanics.

  • Cloud gaming will level up

Improved 5G infrastructure and the development of cloud technologies will make streaming services more stable and widespread. Developers will need to optimize their games for cloud platforms.

  • AI in game development

The role of AI in the creation of gaming content will continue to grow, from generating dialogs to designing levels. This trend has the potential to make the development process much faster and create more dynamic game worlds.

  • The growth of mobile gaming in developing countries

We can expect to see a significant boost in the mobile gaming audience in Asia, Africa, and Latin America. Developers would do well to bear in mind these regions’ cultural sensitivities.

  • A spotlight on user-generated content

Gamers will create content as well as play it. In 2025, more and more players will record their gaming moments and share them on social media. Titles that make it easy to record and stream their gameplay will be equipped to ride a new wave of popularity.

  • The development of cross-platforming

The lines between platforms are becoming increasingly blurred, and this trend is set to continue. Players will expect to be able to play on any platform without losing their progress.

  • New monetization models

Innovative monetization models are expected to appear, possibly using blockchain technologies or new forms of microtransactions. As always, developers will need to strike a balance between profit and player morale.

  • An expanded e-sports scene

E-sports continue to grow, attract new sponsors, and broaden their audience. We may see new e-sport genres appear on the scene as well as stronger players. 

Frequently asked questions

What’s the difference between rankings and audience?

Rankings are numerical data that indicate the popularity of games or content. They can be measured by the number of copies sold, downloads, active users, or views. 

Rankings are useful for evaluating success and comparing different projects. They’re important for developers, publishers, and investors, since they paint a picture of games’ market potential.

An audience is people who watch gaming content but don’t necessarily play themselves. Such content includes streams, let’s-plays, and reviews on YouTube. Understanding audience preferences helps developers improve their content, adapt their marketing campaigns, and forge communities around their projects.

Which streaming platforms are popular in 2024?

Streaming platforms let people play without buying expensive equipment. Here are a few popular services:

  • Amazon Luna: a cloud service where users can play on any device with flexible controls and access a range of genres.
  • Xbox Game Pass Ultimate: a huge library of Xbox and PC titles, available via the cloud. A convenient option for those who want to play wherever they may be.
  • PlayStation Now: access to PlayStation titles via streaming or downloads.
  • NVIDIA GeForce NOW: allows for access to powerful games on weak devices. It launches content from Steam and other stores.
  • Google Stadia: allows users to play via the browser or on their phones, without any installation required. A great option for those playing on less powerful equipment.
  • Apple Arcade: subscription to games without ads or purchases on iOS devices.
  • EA Play and Ubisoft+: subscriptions for EA and Ubisoft games with access to new products and exclusives.

Steaming platforms are a quick way for developers to expose projects to a large audience, try new sales tactics, and test out different formats.

Are you creating your own gaming product?

Here at Inlingo, we’ve been helping developers make memorable games for over 12 years. We specialize in localization, creating art, narrative design, and providing voiceovers. We know how to adapt your project to any country and keep all audiences entertained.

Tell us about your project, and we’ll make sure the whole world hears about it.