Video Games in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: August 2023
NAICS NN003Revenue
$106.8bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
269k
Businesses
47,993
Wages
$XX.Xbn
Video Games in the US industry analysis
The industry enjoyed a massive influx of demand from consumers during the period. Through 2023, a heightened level of demand supported the industry's staggering growth. COVID-19 acted as a catalyst for higher growth, as consumers remained inside to stop the spread. Because of stay-at-home orders, many consumers looked to gaming for a way to pass the time. Consequently, revenue grew at a CAGR of 3.9% to $106.8 billion through 2023, with a 9.4% increase in 2023 alone.Demand has remained so strong across several downstream segments that the industry retained a lot of the demand it experienced in 2020. Young male gamers expectedly remained the largest downstream segment, as most new games are tailored towards that demographic. Female gamers, though, have been an underrepresented group in gaming. Through the pandemic, this demographic represented a large chunk of downstream demand, demand that remained through 2023. This came as gaming companies began making games that are more gender-neutral in terms of themes and stories. This change has aided growth and is set to continue to support industry revenue through 2028.With most people returning to a more normal lifestyle, consumers will have less time to spend gaming, as they had in the previous period. Because of this, gaming developers look towards mobile and online games that can be played on-the-go. The popularity of mobile games has grown considerably as mobile devices become more powerful and better equipped to handle more involved games. These trends are set to support the industry in the coming period, so revenue is expected to grow at a CAGR of 8.6% to $161.4 billion through 2028, with profit reaching 34.3% at the end of the period.
Trends and Insights
- Tailoring games to be more gender-neutral pays off. A staggering number of female gamers remain in the market because of it.
- There’s been a major increase in demand for gaming on-the-go, forcing companies to focus a lot of development in that area.
- Video game companies are very fragmented both in specialization and geographic location. Retailers will follow the population and set up locations in dense areas.
- The fragmented nature of the industry leads to highly concentrated specialty segments. For example, Microsoft, Sony and Nintendo all control the console production segment.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 3.9 % over the past five years, to reach an estimated $106.8bn in 2023.
Trends and Insights
COVID-19 provided a bright spot for the Video Games industry
- As the US plunged into COVID-19 restrictions and stay-at-home orders in 2020, consumers had few options to stave off boredom.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising total imports are set to support revenue through the period
- Hardware like consoles is almost solely produced in foreign countries. Due to low labor costs and the high presence of other manufacturing industries, countries like China and Vietnam are popular places for offshore production.
Biggest companies in the Video Games in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Microsoft Corporation | 11,050.3 | 4,450.9 | 40.3 | |
Sony Corporation | 10,565.5 | 1,118.9 | 10.6 | |
Gamestop Corp. | 3,886.2 | -216.1 | -5.6 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Physical games and software, Consoles and Accessories. Physical games and software is the largest segment of the Video Games in the US.
Trends and Insights
Online games make gaming available to most consumers in the US
- Whether the games are played through console, PC or on a mobile device, games offered online makes it much easier for consumers to play. If the consumer has access to the internet, they'll have thousands of games at their fingertips.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Audio & Video Equipment Manufacturing in the US
- Toy & Craft Supplies Wholesaling in the US
- Consumer Electronics Stores in the US
- Department Stores in the US
- Consumer Electronics & Appliances Rental in the US
- Industrial Designers in the US
- Video Game Software Publishing in the US
International industries
- Global Computer Hardware Manufacturing
- Gaming and Vending Machines Manufacturing in Australia
- Computer and Computer Peripheral Wholesaling in New Zealand
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
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 servicesCompanies
Microsoft CorporationSony CorporationGamestop Corp.Purchase this report to view all 6 major companies in this industry.
Related Terms
MASSIVELY MULTIPLAYER ONLINE GAME (MMOG)CONSOLECONTROLLERAAA (TRIPLE-A) GAMEDOWNLOADABLE CONTENT (DLC)Industry Code
NAICS 511210 - Video Games in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Tailoring games to be more gender-neutral pays off. A staggering number of female gamers remain in the market because of it.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
There’s been a major increase in demand for gaming on-the-go, forcing companies to focus a lot of development in that area.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Video game companies are very fragmented both in specialization and geographic location. Retailers will follow the population and set up locations in dense areas.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The fragmented nature of the industry leads to highly concentrated specialty segments. For example, Microsoft, Sony and Nintendo all control the console production segment.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Top player GameStop was bought up by several entities in 2022. The company was acquired after a disastrous stock situation in 2021.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Sony Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Gamestop Corp.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Microsoft Corporation, and factors influencing its performance in the industry
- Description and key data for Sony Corporation, and factors influencing its performance in the industry
- Description and key data for Gamestop Corp., and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Inflation and changing preferences harmed revenue at the end of the period. As the world opened back up, consumers allocated their disposable income elsewhere.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising popularity in the online games segment helped gaming companies. With higher profit, revenue grew throughout the period.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Video Games in the US industry in United States in 2024?
The market size of the Video Games in the US industry in United States is $106.8bn in 2024.
How many businesses are there in the Video Games in the US industry in 2023?
There are 47,993 businesses in the Video Games in the US industry in United States, which has grown at a CAGR of 6.2 % between 2018 and 2023.
Has the Video Games in the US industry in United States grown or declined over the past 5 years?
The market size of the Video Games in the US industry in United States has been growing at a CAGR of 3.9 % between 2018 and 2023.
What is the forecast growth of the Video Games in the US industry in United States over the next 5 years?
Over the next five years, the Video Games in the US industry in United States is expected to grow.
What are the biggest companies in the Video Games in the US market in United States?
The biggest companies operating in the Video Games market in United States are Microsoft Corporation, Sony Corporation and Gamestop Corp.
What does the Video Games in the US in United States include?
Developing video game software and Publishing video game software are part of the Video Games in the US industry.
Which companies have the highest market share in the Video Games in the US in United States?
The company holding the most market share in United States is Microsoft Corporation.
How competitive is the Video Games in the US industry in United States?
The level of competition is high and steady in the Video Games in the US industry in United States.
