The global market for video‑game software has been expanding at a modest but steady compound annual growth rate of roughly three percent over the last four years, and analysts expect that momentum to continue for another four‑year horizon. Despite this overall upward trend, player behavior remains heavily tilted toward the familiar. According to Bain & Company’s latest annual Gaming Report – a survey that captured the preferences of more than 5,300 gamers from around the world – two‑thirds of respondents say they gravitate toward known franchises or sequels, while only one in five actively looks for brand‑new titles.
The research highlights a widespread dissatisfaction with what the firm calls the "unfocused middle" of the market: games that are overly generic, safe, and shallow, and therefore fail to capture attention. To illustrate this point, Bain & Co compared two recent releases. Baldur’s Gate 3 succeeded by aiming at a narrowly defined, highly engaged audience that appreciated deep role‑playing mechanics and narrative depth.
In contrast, the hero‑shooter Concord entered an already saturated segment dominated by free‑to‑play models, and struggled to persuade players to spend the full $40 price tag. When Bain & Co examined public performance data for 100 titles launched since 2023, the contrast became stark. Focused games that targeted a specific player archetype achieved commercial success in 83 % of cases, whereas only half of the unfocused, broadly marketed titles managed to turn a profit. This suggests that precision in audience definition is a far stronger predictor of financial results than sheer marketing spend.
Player preferences across genres are also highly fragmented. When asked which type of experience they preferred – story‑driven adventures, open‑world sandbox environments with user‑generated content, or competitive multiplayer – no single category attracted more than 26 % of respondents. About 20 % said their choice varies depending on mood or that they treat the categories as roughly equal, while 17 % either selected "none of the above" or listed other niche genres. The report also identified two macro‑level forces reshaping the industry: escalating player expectations and the rapid adoption of generative artificial intelligence.
Younger gamers, in particular, are concentrating their playtime on a limited set of platforms, with Roblox cited as the emerging "center of gravity" for the broader ecosystem over the past five years. This concentration intensifies competition for attention and underscores the importance of delivering experiences that resonate deeply with a well‑defined audience.
On the AI front, developers are leveraging generative tools to accelerate production pipelines, create assets, and even prototype gameplay mechanics. However, Bain & Co warns that AI alone does not mitigate risk unless the underlying product vision is clear.
As one analyst put it, AI "lets you scale the wrong bet faster." The firms that will thrive, the report argues, are not necessarily those with the deepest pockets or the most sophisticated AI stacks, but those that commit early to building for a player they can describe in a single sentence. Player sentiment toward AI in game development has shifted positively over the last twelve months. Forty‑two percent of surveyed gamers now feel more comfortable with AI‑enhanced development than they did a year ago, another 44 % are unchanged, and fewer than one in seven express increased discomfort. Acceptance is especially high among teenagers: 59 % of players aged 13‑17 report greater comfort with AI usage, while 33 % say their view remains the same.
Bain & Co’s senior partner Anders Christofferson interprets these findings as a green light for studios hesitant about AI’s reputational impact. "For studios worried that AI adoption carries reputational risk with their player base, this data suggests the window to move is open, particularly with the audiences who will define the market over the next decade," he said. He added that AI can also serve as a powerful analytics engine, helping developers decode engagement patterns, surface the features that resonate with a target cohort, and close the feedback loop between creators and communities. Personalisation is another lever that the report highlights.
Tailored communications, bespoke advertising, and content recommendations that speak directly to an individual’s preferences have been shown to boost spending, especially among younger demographics. In fact, 86 % of teenagers reported spending money on gaming‑related activities each month, compared with just over half of players in their 50s, 36 % of those in their 60s, and 27 % of those in their 70s. These activities encompass purchases of new games, downloadable content, subscription services, and streamer tips, but exclude hardware such as consoles or VR headsets.
Direct‑to‑consumer sales are also on the rise. Nearly half of all gamers said they buy directly from a developer’s web store at least once a year, and 27 % do so repeatedly.
The trend is most pronounced among the youngest cohort: 40 % of 13‑ to 17‑year‑olds reported multiple direct purchases in the past twelve months. Christofferson sums up the strategic implication for industry leaders: "The question for gaming executives is no longer solely about reaching more players. It's reaching the right players, in the right way, and getting more ownership over that relationship." He emphasizes that studios pulling ahead are those that have made a deliberate choice about who they are building for and have aligned every resource—AI, distribution channels, and personalisation tactics—behind that singular focus.
In summary, Bain & Co’s findings paint a picture of an industry at a crossroads. While overall revenue growth remains modest, the path to outsized success lies in narrowing the target audience, leveraging AI as an accelerator rather than a crutch, and deepening the personal connection with players through tailored experiences. Studios that internalise these lessons are poised to capture both the loyalty and the spend of the next generation of gamers.