:max_bytes(150000):strip_icc()/GettyImages-2169683527-e6483010f99148548694b7608e7f4d59.jpg "The Global Video Game Market Could Soon Approach $500 Billion, New Report Says")
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Key Takeaways
- The video game market is projected to more than double from 2023 to 2033, according to a new analysis.
- The firm Brainy Insights says it could reach $490 billion by 2033, up from under $250 billion last year.
- Major game companies have lately made sizable layoffs and closed studios.
The video game market will more than double from 2023 to 2033 as technological advancement drives growth, according to a new analysis.
The global video game market was valued at $227.6 billion last year and is projected to grow to $490.81 billion by 2033, according to the research firm Brainy Insights.
The firm pointed to an explosion in mobile gaming, which made up 52% of the market in 2022, as a driver of growth. The mobile segment is the most affordable entry point for consumers, and the advancement of smartphone technology has allowed for a wider variety of games to be run on mobile platforms.
Costs for Developers
The biggest impediment for the video game market is the high costs related to developing both new tech and new games, particularly as companies in the industry are making major cuts.
On Thursday, Microsoft (MSFT) reportedly said it would cut 650 employees from its Xbox division, the company’s third round of unit cuts since closing its $69 billion acquisition of Activision Blizzard last October. Microsoft laid off 1,900 Xbox employees in January and closed multiple Bethesda studios in May.
Take-Two Interactive Software (TTWO), the developer of the “Grand Theft Auto” franchise, closed two of its subsidies in May, according to Bloomberg. Earlier this month, Sony (SONY) pulled first-person shooter “Concord” from Playstation 5 consoles and PCs just two weeks after the game underperformed.
The video game industry supports more than 1 million jobs in the U.S. and contributes about $5 billion to the country’s economy, according to Brainy Insights.