Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $54.0bn in 2025.
Trends and Insights
Growth has been sustained since the pandemic surge
- As the industry has transitioned to a post-pandemic era, publishers have implemented strategic initiatives to sustain and propel the momentum experienced during 2020. Over the past five years, software developers have largely been successful in solidifying diversified revenue streams and growing their player base. Though in 2022, there was a dropoff in player activity, which led to revenue declines during the year, Circana notes that as of 2024, 71% of US consumers play video games weekly, spending an average of $56.20 on video game purchases. Publishers have continued to diversify their appeal to different demographics, with the average age of a US video game player now being 36 years old, according to the Entertainment Software Association. By appealing to a broader and expanding range of age groups, genders and cultural backgrounds, publishers have increased their potential consumer base, driving sales and engagement.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Delayed releases of next-generation consoles will limit software innovation
- Moving forward, Sony's PlayStation 5 and Microsoft's Xbox Series X and S, launched in 2020, are set to remain their flagship consoles for much of the next five years. Instead of prioritizing next-generation consoles, both companies have instead invested in mid-generation and alternative hardware releases in the short-term. In 2024, Sony released the PlayStation 5 Pro, which has led to an 18% increase in sales, according to Forbes. Meanwhile, Xbox has invested in a handheld device, which has yet to be released and is being designed to compete with Nintendo Switch. Though these devices are set to deliver improvements to console performance and graphics, they are still not expected to be able to support much of the emerging software features currently being researched and tested within the video game software publishing industry.
Biggest companies in the Video Game Software Publishing in the US
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
11,393.8 | 5,043.2 | 44.3 | ||
7,697.3 | 824.1 | 10.7 | ||
3,869.8 | 858.5 | 22.2 |
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 Action and adventure video games, Sports video games and Shooter video games. Action and adventure video games is the largest segment of the Video Game Software Publishing in the US.
Trends and Insights
Adventure games navigate enable players to navigate open worlds
- The action and adventure video game segment, constituting 34.8% of the market, is the oldest and one of the most diverse categories, blending compelling narratives with immersive gameplay. Titles within this segment often include open-world environments, intricate storylines and character development, drawing players who seek both escapism and emotional engagement. Titles like The Legend of Zelda and Uncharted not only offer challenging quests and puzzles but also provide expansive worlds rich in lore and interactive experiences.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Companies in this industry primarily publish video game software. These companies produce and distribute video games, including design, documentation, installation and support services. Operators may design, develop and publish games, or may solely be involved in publishing. Industry operations also include the sale of in-game software add-ons and other downloadable content, as well as in-game advertising.
What's included in this industry?
Creating action and adventure video gamesCreating sports video gamesCreating shooter video gamesCreating role-playing video gamesCreating racing video gamesCreating casual and strategy video gamesCreating fighting video gamesCompanies
Microsoft CorporationSony CorporationActivision Blizzard, inc.Purchase this report to view all 6 major companies in this industry.
Related Terms
VIDEO GAME CONSOLECYBER ATTACKMOTION CAPTUREDOWNLOADABLE CONTENT (DLC)AAA (TRIPLE-A) GAMEIndustry Code
NAICS 511210 - Video Game Software Publishing 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
Mobile gaming has significantly driven industry revenue growth. Its affordability, widespread smartphone adoption and microtransaction model have attracted a diverse audience...
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 (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- 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
Sports and racing games generate recurring revenue through realism and eSports. Titles like FIFA captivate players with detailed graphics and strategic gameplay, ensuring ste...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
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
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
The West still dominates video game publishing. Between California and Washington, the region houses the headquarters of all major publishers in the industry.
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 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
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
New entrants will find it easy to develop a game, but hard to break into this industry and capture the wallets of gamers. Brand loyalty and market concentration make it very ...
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 2020-2025
- 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
Microsoft has successfully acquired Activision Blizzard. The deal was completed despite antitrust action taken by both the US and EU trade commissions. Microsoft now owns man...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Sony Corporation's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Activision Blizzard, inc.'s performance by revenue, market share and profit margin from 2019 through 2025
- 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 Activision Blizzard, inc., 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 have harmed gaming revenue. As the world has re-opened in the years after the pandemic, consumers have allocated their disposable income el...
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 (2015-2030)
- Assistance historical data and forecast (2015-2030)
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 and mobile game segment boosts profit. These games often supplement sticker prices with paid DLCs or microtransactions, both of which have rec...
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 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
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 (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Video Game Software Publishing in the US industry in United States in 2025?
The market size of the Video Game Software Publishing in the US industry in United States is $54.0bn in 2025.
How many businesses are there in the Video Game Software Publishing in the US industry in 2025?
There are 26,401 businesses in the Video Game Software Publishing in the US industry in United States, which has grown at a CAGR of 3.0 % between 2020 and 2025.
Has the Video Game Software Publishing in the US industry in United States grown or declined over the past 5 years?
The market size of the Video Game Software Publishing in the US industry in United States has been growing at a CAGR of 2.6 % between 2020 and 2025.
What is the forecast growth of the Video Game Software Publishing in the US industry in United States over the next 5 years?
Over the next five years, the Video Game Software Publishing in the US industry in United States is expected to grow.
What are the biggest companies in the Video Game Software Publishing in the US market in United States?
The biggest companies operating in the Video Game Software Publishing market in United States are Microsoft Corporation, Sony Corporation and Activision Blizzard, inc.
What does the Video Game Software Publishing in the US in United States include?
Creating action and adventure video games and Creating sports video games are part of the Video Game Software Publishing in the US industry.
Which companies have the highest market share in the Video Game Software Publishing in the US in United States?
The company holding the most market share in United States is Microsoft Corporation.
How competitive is the Video Game Software Publishing in the US industry in United States?
The level of competition is moderate and steady in the Video Game Software Publishing in the US industry in United States.
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Competitors
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Complementors
View all industries in United States
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.
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