Bain & Company: Global video game market moving into new era
Bain & Company’s survey of more than 5,000 gamers worldwide shows that user-generated content, influencer-led game discovery, and cross-media intellectual property are defining the next era of gaming.
Sweeping shifts in the industry across user behaviors, monetization models and distribution, fueled by rising player expectations and increasing democratization of game creation, are changing the face of the global gaming sector.
The global video game market reached $219 billion last year and is projected to grow by 4% annually through 2028, Bain & Company projects. But the researchers note that the industry’s growth is increasingly concentrated among top titles, many of which rely on user-generated content (UGC), cross-media IP ecosystems, and direct-to-consumer distribution models which sidestep traditional storefronts.
“We’re witnessing a generational shift in what it means to engage with games,” Daniel Hong, leader of Bain’s global Media & Entertainment practice, said. “Today’s top games aren’t just entertainment – they’re platforms for creativity, socialization, and storytelling. Studios that embrace this broader role will lead the next era of gaming, and those that don’t will be left behind.”
Games as a platform thrive as AAA studios struggle
Platform-style games – those offering expansive worlds, community-building features, and tools for creators – are capturing double-digit user growth as they rapidly pull players, creators, and brands into their orbit, the report notes. Popular games as a platform are growing active users by 10% to 20% annually and are becoming the “center of gravity” for the entire ecosystem.
Alongside, traditional AAA studios face rising development costs, shrinking margins, and steep competition. In contrast, independent developers, unburdened by the legacy costs of more established rivals, are thriving and achieved a 22% compound annual growth rate (CAGR) for PC game revenues from 2018 through 2024, compared to a CAGR of just 8% for AAA/AA game studios.
User-generated content is growing fast
The survey found that nearly half of creators are spending more time creating content compared to last year. Even gamers over 35 years old reported a meaningful increase in time spent creating in-game content.
This trend is most pronounced among younger players between two and 17 years old, who are 20 percentage points more likely to play the games their peers are playing. Platform-style titles that support UGC have a powerful “flywheel effect” – boosting community retention and making player-generated content central to game longevity.
“Young gamers are driving the success of top games, and their values are reshaping the industry,” said Anders Christofferson, leader of Bain & Company’s Gaming offering and partner within the Media & Entertainment practice. “Customization, social connection, and creativity now rank higher than visual fidelity for many players. The old formula of promising sequels and better graphics is no longer enough to stay competitive.”
Direct-to-consumer distribution is gaining ground
The balance of power in the gaming marketplace is shifting away from digital storefronts. 24% of players discover new games through online content creators or influencers, while 14% of respondents discover them through social media, and just 12% discover new games through traditional digital storefronts, the survey shows.
In response, developers are launching their own web stores to retain margin and build direct customer relationships. The share of top-grossing mobile games with their own online stores has nearly quadrupled within five years from 12% in 2019 to 44% in 2024, Bain reports. These trends are being accelerated by rulings in the US, the EU, and Brazil, which have barred app stores from restricting developers from steering users to external purchase links.
Winning beyond the game: IP expansion fuels engagement
Top franchises are no longer confined to consoles. Bain & Company’s report shows that around a quarter of gamers’ time spent consuming other media is focused on game-related intellectual property (IP), such as shows, music, and merchandise. Critically acclaimed film and television adaptations boost game engagement significantly, lifting average concurrent users (ACUs) by up to 69% for top-rated series.
Successful franchises are setting the benchmark for the industry by orchestrating seamless experiences across platforms, leveraging merchandising, and building creator communities.
Several common principles that set winning IP owners apart according to Bain & Company include:
Respect and embrace the fans
Leading companies maintain quality and authenticity to the game’s lore across all media. Loyal fans will reward faithfulness and punish betrayal.
Expand across media selectively
Not every story belongs on every screen. Leading companies only pursue new formats that fit the brand and avoid over-extending, which dilutes the IP and harms quality.
Build an intentional, comprehensive roadmap
This needs to be more than just marketing. How do you take a player or fan on a journey that immerses them deeply in the IP? Leading companies prioritize long-term engagement over short-term monetization.
Invest in the operating model and key capabilities
Organizational structure plays a role, but ensuring players and fans engage with IP requires investing in business processes, governance forums, and new capabilities around elements such as interactive storytelling and IP management.
