Leveling Up for
the New Reality
The Gaming Report
DECEMBER 2024
The gaming industry was enjoying rapid growth—then a postpandemic
correction hit
GLOBAL GAMING REVENUE BY TYPE ($BILLIONS)
+13%
150
131
6
33
33
29
34
64
75
2017
2018
9
163
11
32
CAGR, 2017–2023 (%)
+1%
197
13
33
43
211
17
36
44
214
204
1
20
24
1
36
37
41
43
34
85
2019
107
2020
114
2021
107
2022
108
Ads in mobile games
26
Cloud and VR1
120
PC2
2
Console2
7
Mobile
9
1
2023
Sources: Ampere Analysis; IDC; BCG analysis.
Note: VR = virtual reality. Because of rounding, the numbers may not add up to the totals shown.
1
VR includes only Meta Quest game sales; other VR game sales are included in the PC or console categories. 2Includes handheld devices, depending on their operating system. (For example, Steam Deck falls into the
PC category, and Nintendo Switch falls into the console category.)
Future growth will be more modest, as double-digit rates are unlikely to return
GLOBAL GAMING REVENUE BY TYPE ($BILLIONS)
CAGR, 2023-2028E (%)
+5%
214
24
37
43
108
2023
1
221
26
37
43
113
2024E
0
2
232
28
39
45
118
2025E
243
0
2
31
254
1
2
32
39
40
47
48
124
2026E
130
2027E
266
2
3
34
41
2
3
Ads in nonmobile games
56
Ads in mobile games
7
Cloud and VR1
16
PC2
2
Console2
3
Mobile
4
50
137
2028E
Sources: Ampere Analysis; IDC; BCG analysis.
Note: VR = virtual reality. Because of rounding, the numbers may not add up to the totals shown.
1
VR includes only Meta Quest game sales; other VR game sales are included in the PC or console categories. 2Includes handheld devices, depending on their operating system. (For example, Steam Deck falls into the
PC category, and Nintendo Switch falls into the console category.)
Emerging platforms are gaining momentum, but they will remain niche markets
while the technologies and economics improve
AR and VR1
Cloud
MARKET SIZE ($MILLIONS)
MARKET SIZE ($MILLIONS)
939
UGC
DEVELOPER PAYOUTS ($MILLIONS)2
1,750
2,700
1,183
1,750
464
110
112
19
2019
2024
2028E
2019
2024
2028E
Q2 2020
Q2 2022
Q2 2024
Maturity
Feasibility for
mass adoption
Infrastructure (such as data
centers) and network speeds are
currently limiting the types of
games that run well in the cloud
Sources: Ampere Analysis; Statista; annual reports; BCG analysis.
Note: AR = augmented reality; VR = virtual reality; UGC = user-generated content.
1
Excludes hardware. 2Based on companies’ estimates of developer payouts.
Hardware expense and content
selection are currently limiting
the pace of adoption
There is high potential for wider
adoption, much as short-form
video and social media changed
video distribution
The costs of AAA game development have increased sharply in recent years, as
have sales and marketing expenses, but fewer games have been released
AAA business
Publisher 1
Publisher 2
+360%
DEVELOPMENT COSTS
($MILLIONS)1
69
2012
197
2017
+449%
316
2021–2023 (average)3
26
55
2012
2017
+220%
SALES AND MARKETING
COSTS ($MILLIONS)1
2021–2023 (average)3
+323%
107
34
34
2012
2017
2021–2023 (average)3
11
2012
–73%
NUMBER OF GAMES RELEASED2
144
45
2017
2021–2023 (average)3
–63%
26
2012
28
8
7
2017
2021–2023 (average)3
19
2012
12
7
2017
2021–2023 (average)3
Sources: Companies’ public filings and statements.
1
The costs were adjusted based on the 2023 US dollar foreign exchange rate. Costs include full-game and major expansions but not general releases of downloadable content. The games include those the company
directly developed (as opposed to the games it published but did not directly develop). 2Includes games that were directly developed by the company as well as games that the company published but did not develop
directly. 3An average was used to mitigate pandemic-related effects.
The mobile game space has seen trends similar to those in AAA game development
Mobile games
DEVELOPMENT COSTS
($MILLIONS)1
Publisher 1
Publisher 2
–19%
+92%
169
137
211
2019
2021
2019
+54%
SALES AND MARKETING
COSTS ($MILLIONS)1
NUMBER OF GAMES RELEASED
2
239
2019
2021
2019
+36%
406
2023
52
70
2020
2023
+42%
155
3
Publisher 3
414
2019
+30%
586
2023
4
2021
57
74
2020
2023
4
1
1
2019
2023
2020
3
2023
Sources: Companies’ public filings and statements.
1
The costs were adjusted based on the 2023 US dollar foreign exchange rate. Costs include full-game and major expansions but not general releases of downloadable content. The games include those the company directly
developed (as opposed to the games it published but did not directly develop). 2Includes games that were directly developed by the company as well as games that the company published but did not develop directly.
Game development budgets are growing faster than game revenues are, and the
gap will only increase
AAA DEVELOPMENT BUDGET VS. CONSOLE GAME REVENUES, 2017–2028 (CAGR, %)
15
+8%
10
+3%
5
+6%
+5%
0
2017
2022
Development budget (historical)
Development budget (estimated)
Sources: Ampere Analysis; IDC; expert interviews; BCG analysis.
2028E
Console game revenues (historical)
Console game revenues (estimated)
Few publishers expect development budgets to decrease, suggesting that GenAI
savings will help fund bigger, better games
Question: Does your company plan to adjust its game development budgets to better leverage GenAI and the increased productivity?
RESPONDENTS (%)
AAA
5
5
AA
5
5
Indie
5
5
65
10
75
57
Decrease by >10%
Decrease by 6%–10%
Increase by 6%–10%
14
Decrease by 1%–5%
Increase by 11%–15%
Sources: BCG’s gaming industry survey, December 2023; BCG analysis.
Note: n = 40 (AAA); n = 20 (AA); n = 21 (indie). Because of rounding, the percentages may not total 100.
Keep unchanged
Increase by 16%–20%
10
10
3 3
10
5
5
Increase by 1%–5%
Increase by >20%
5
To break even in the first year, a $50 million console game must crack the top 20,
but typically, two-thirds of the slots are taken by recurring titles
First-year sales
Games that are regularly in the US top 20
UNITS
(MILLIONS)
REVENUE
($MILLIONS)
25
1,250
20
1,000
15
750
10
500
5
250
0
0
2019
>$400M
$300M–$400M
$100M–$300M
$50M–$100M
1
5
10
15
US 2023 game ranking1
20
Breakeven by development budget size (at games’ current price points)
2020
2021
2022
2023
Call of Duty
Madden NFL
EA Sports FC2
NBA 2K
Annual
release
MLB: The Show
Mario Kart
Super Smash Bros.
Mortal Kombat
Super Mario
Minecraft
Pokémon
Spider-Man
Resident Evil
Assassins Creed
Franchise
release
Elden Ring
Hogwarts Legacy
Notable
exceptions3
Sources: Circana; Competition and Markets Authority; BCG analysis.
1
The analysis looked at the top 20 AAA and AA games released in 2023. It assumes each unit sold at $70, with a 30% platform fee, resulting in approximately $50 net revenue per unit. 2This game replaced FIFA in 2024.
3
These are notable because they are new games that broke into the top 20.
An increasing share of revenues for mobile games is from in-app ads, while
subscriptions and digital sales have grown most in console
SHARE OF REVENUES BY MONETIZATION MODEL (%)
PC
Mobile
11
0
9
8
19
Console2
13
11
24
In-app advertising
Third-party advertisements published in
free-to-play games
30
Subscriptions
Recurring spending on single games or
game services (such as Xbox Game Pass
and Apple Arcade)
28
In-game purchases
Microtransactions and sales of virtual
goods and downloadable content
31
69
72
87
22
79
18
2019
$96B
1
2024
$139B
0
2019
$32B
33
22
2
2024
$37B
0
2019
$34B
18
2024
$42B
Digital full-game sales
Digital copies distributed via a console
gaming marketplace (such as PlayStation
and Xbox stores)
Physical full-game sales
Physical games sold through traditional
brick-and-mortar stores or online retailers
Sources: Ampere Analysis; IDC; BCG analysis.
Note: Because of rounding, the percentages may not total 100.
1
Subscription services only. In-game subscription spending is included under in-game purchases. 2Remaining physical share is largely driven by Nintendo Switch software.
Monetization model shifts are expected to be more dramatic for consoles than
for the overall market
SHARE OF REVENUE IN CONSOLE MARKET (%)
11
20
27
SHARE OF REVENUE IN OVERALL GAMING MARKET (%)
10
12
21
2
3
6
12
1
7
12
1
5
Subscription to a game
29
Subscription to a service
36
49
22
7
19
2017
1
30
30
2023
2028
Premium digital full games
73
76
78
2017
2023
2028
Sources: Ampere Analysis; IDC; BCG analysis.
Note: DLC = downloadable content. Because of rounding, the percentages may not total 100.
1
Remaining physical share is largely driven by Nintendo Switch software.
Premium physical full games1
In-game purchases and DLC
More than half of core gamers—those who play at least six hours per week—are
open to seeing advertising inside premium games
Statement: I don’t mind ads in my PC or console games.
RESPONDENTS (%)
8
15
36
10
23
RESPONDENTS (%)
14
29
27
Hours per week
<1
16
30
20
29
8
25
14
26
20
13
17
21
31
28
23
19
21
16
15
19
15
18
15
14
12
15
1–5
6–10
11–20
21–50
>50
26
31
30
20
27
17
24
15
18
16
23
15
10
18
14
14
17
16
1–5
6–10
11–20
21–50
>50
28
<1
Receptive to ads
Strongly agree
Sources: BCG’s gaming survey, 2024; BCG analysis.
Note: n = 5,199.
9
34
29
26
14
Statement: I don’t mind ads in my mobile games.
Somewhat agree
26
20
Resistant to ads
Neutral
Somewhat disagree
Strongly disagree
Gamers in China show the highest willingness to pay—both for single-player and
live services games
Live services
Single player
Country
Price range
Optimal
Price range
Optimal
UK
$45–$62
$51
$42–$62
$53
US
$40–$58
$41
$41–$58
$49
Germany
$46–$66
$58
$42–$66
$53
China
$60–$93
$82
$61–$93
$81
Japan
$43–$59
$45
$41–$59
$44
India
$48–$74
$59
$46–$74
$57
Brazil
$40–$57
$42
$40–$57
$45
Mexico
$42–$67
$48
$44–$67
$56
Overall average1
$46–$67
$53
$44–$67
$54
Sources: BCG’s gaming survey, 2024; BCG analysis.
Note: For single-player games, the respondents are from the UK (120), the US (124), Germany (95), China (135), Japan (113), India (64), Brazil (124), and Mexico (104). For live services, the respondents are from the UK
(145), the US (146), Germany (107), China (130), Japan (148), India (73), Brazil (138), and Mexico (139).
1
A weighted average.
Players in emerging economies play more—and plan to play more in the
future—than do players in developed economies
Question: How much time do you spend playing games
per week?
Question: How do you expect the amount of time you
spend playing games to change in the future?
RESPONDENTS (%)
RESPONDENTS (%)
Emerging economies
Emerging economies
3
23
28
28
15
43
3
Developed economies
4
53
4
Developed economies
25
28
27
15
<1 hour
1–5 hours
6–10 hours
11–20 hours
21–50 hours
>50 hours
1
19
73
Increase
Source: BCG’s gaming survey, 2024.
Note: n = 2,029. Emerging economies are Brazil, China, India, and Mexico. Developed economies are Germany, Japan, the UK, and the US.
Stay the same
8
Decrease
Genre preferences vary by age, likely driven by lifestyle and generational differences
Question: In the last six months, what types of games have you played most frequently?
TYPE OF GAME
RESPONDENTS BY AGE (%)
18–21
Action or adventure
Role playing
First-person shooters
Sports and racing
Simulation
Strategy
Puzzle and casual
Fighting
Horror
Educational
MMORPG
MOBA
Battle royale
World building, sandbox
Survival
Collectable card
Casino
22–25
26–30
31–35
36–40
41–50
51–65
1
>65
generations strongly prefer
1 Younger
action or adventure games and may
continue to do so as they age
older than 51 prefer puzzles
2 Adults
(possibly because they are brain
2
3
exercises) and casual games (possibly
because they are closer to the classic
arcade titles with which they grew up)
the educational game market,
3 For
players older than 51 present an
opportunity for growth
4
in world building among older
4 Interest
gamers is likely because parents and
grandparents play games such as
Minecraft with their kids and grandkids
0%
60%
Source: BCG’s gaming survey, 2024.
Note: n = 2,029. MMORPG = massively multiplayer online role-playing game; MOBA = multiplayer online battle arena.
The next generation of retirees expects to play games more than current retirees do
Question: How many hours do you play games per
week currently?
Question: How do you expect the amount of time you
spend playing games to change in the future?
RESPONDENTS (%)
RESPONDENTS (%)
Student
6
Establishing independence
4 12
Starting a career
4
Advancing in career
2
Forming a long-term relationship
26
20
22
16
30
13
28
17
29
26
37
25
2
64
11
29
3
40
53
7
24
4
37
54
9
4
36
60
4
35
62
35
60
5
5
31
20
3
30
17
31
9
Starting a family
8
11
32
26
19
Parenting young children
4
18
28
33
14
2
36
59
31
16
1
39
58
Parenting teenagers
26
2
25
Empty nester
4
35
Approaching retirement
4
41
Retired
7
42
23
6 1
16
76
8
29
19
7
24
67
9
28
17
5 1
31
<1 hour
1–5 hours
6–10 hours
11–20 hours
21–50 hours
>50 hours
Source: BCG’s gaming survey, 2024.
Note: n = 2,029. Because of rounding, the percentages may not add up to 100.
3
3
13
79
Increase
Stay the same
8
Next generation
3 of retirees
Current generation
of retirees
Decrease
Children are playing games at increasingly younger ages, expanding the size of
the potential audience for games
18
Starting age for playing games
16
97%
Today’s 15-year-olds
started playing games
at about aged 7
14
12
10
8
The share of children,
aged 10 through 13,
who play games1
By contrast, today’s
43-year-olds were closer to
aged 13 when they started
6
4
2
0
10
15
20
25
30
Current age
Source: BCG’s Digital Play parental survey, December 2023.
Note: n = 2,400.
1
Percentage of parents indicating that their child plays games either sometimes or often.
35
40
45
50
About the Authors
Giorgo Paizanis
Partner
BCG X – Manhattan Beach
paizanis.giorgo@bcg.com
Ernesto Pagano
Managing Director & Partner, Global Sector Leader, Media
Miami
pagano.ernesto@bcg.com
Rob Schonfeld
Senior Advisor
Los Angeles
schhonfeld.rob@advisor.bcg.com
Nicolas Schmidt
Managing Director & Partner
Stockholm
schmidt.nicolas@bcg.com
For Further Contact
To discuss this report and our findings, please contact one of the authors.