The worldwide market for video‑game software has been expanding at a steady compound annual growth rate of roughly three percent over the last four years, and analysts expect that momentum to continue for at least another four‑year period. Despite this healthy macro‑trend, the underlying consumer behaviour tells a different story: roughly two‑thirds of gamers say they prefer to stick with familiar franchises or sequels, while only one out of every five actively looks for brand‑new experiences.
These insights come from Bain & Company’s most recent annual Gaming Report, which collected responses from more than 5,300 players across a broad range of regions and demographics. The survey uncovered a pervasive sense of disappointment with what the firm labels the "unfocused middle" – games that are overly generic, safe, and shallow, and therefore fail to capture attention in an increasingly crowded marketplace.
To illustrate the contrast, Bain & Co highlighted the very different receptions of two recent releases. Baldur’s Gate 3 succeeded by deliberately targeting a narrow, well‑defined audience that craved deep role‑playing mechanics and narrative depth.
In contrast, the shooter Concord entered an already saturated hero‑shooter segment and struggled to persuade players who were accustomed to free‑to‑play models to spend a full $40 on the title. The comparison underscores a broader pattern: when developers concentrate on a specific player persona, they are far more likely to achieve commercial success. In a data‑driven analysis of 100 games launched since 2023, Bain found that 83 % of titles with a clear, focused positioning reached their revenue targets, whereas only half of the unfocused, broadly aimed games did so.
This stark disparity suggests that market differentiation is becoming a decisive factor for profitability. Player preferences for game genres are also highly fragmented. When respondents were asked which type of experience they preferred – story‑driven adventures, open‑world sandbox or user‑generated content, or competitive multiplayer – no single category attracted more than 26 % of the vote. About one‑fifth of gamers said their choice depends on mood or that they treat the categories as roughly equal, while 17 % indicated they either play none of the listed types or prefer other, niche formats.
The report also identified two major forces reshaping the industry: growing player expectations and the rapid adoption of generative artificial intelligence. Younger gamers, in particular, are devoting more of their playtime to a limited set of platforms, with Roblox highlighted as a central hub that has become "the gravity centre of the entire gaming ecosystem" over the past five years. On the AI front, developers are leveraging generative tools to accelerate production pipelines, create assets, and even generate dialogue.
However, Bain warns that AI alone does not mitigate risk unless it is applied to a well‑defined audience. As the firm puts it, "it lets you scale the wrong bet faster." The companies that will thrive in the coming years, according to Bain, are not necessarily those with the deepest pockets or the most sophisticated AI stacks, but those that can articulate their target player in a single, concise sentence and align every resource – from design to marketing – around that vision. Consumer sentiment toward AI in game development has become more favourable over the last twelve months.
Forty‑two percent of surveyed players said they feel more comfortable with AI usage in games than they did a year ago, another 44 % reported no change, and fewer than one in seven expressed increased discomfort. The trend is especially pronounced among teenagers: 59 % of respondents aged 13‑17 indicated greater comfort with AI this year, while 33 % said their opinion remained unchanged. Bain’s analysts interpret these findings as a green light for studios hesitant about reputational risk. "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," the report states.
Moreover, AI can serve as a powerful analytics engine, helping developers decode engagement patterns, surface what resonates with a target cohort, and tighten feedback loops between creators and their communities. Personalisation is another lever that the report highlights. Tailored communications, bespoke advertisements, and content recommendations that speak directly to an individual’s preferences have been shown to boost spending, especially among younger gamers. 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 titles, downloadable content, subscription services, and streamer tips, but exclude hardware such as consoles or VR headsets. Direct‑to‑consumer sales are also gaining traction. 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 propensity to purchase directly is strongest among the youngest cohort: 40 % of 13‑ to 17‑year‑olds reported multiple direct purchases in the past twelve months. Anders Christofferson, global lead for Bain’s Video Game sector and partner in its Media & Entertainment practice, summed up the strategic implication: "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 added that studios that are pulling ahead are those that have made a deliberate choice about who they are building for and are aligning every resource – AI tools, distribution channels, and personalisation tactics – behind that answer. In summary, the Bain & Co Gaming Report paints a picture of an industry at a crossroads. While overall revenue growth remains modest but steady, the path to success increasingly hinges on laser‑focused audience targeting, intelligent use of AI, and deep personalisation.
Developers who can distil their ideal player into a single, clear statement and then marshal technology, marketing, and distribution to serve that player are poised to capture the most value in the years ahead.