Global revenue from video‑game software has been expanding at an average compound annual growth rate of roughly three percent over the last four years, and analysts expect that momentum to persist for another four‑year horizon. Yet the same data reveal a striking paradox: while the market is growing, the majority of players are not actively seeking out new experiences.
In fact, about two‑thirds of respondents say they gravitate toward familiar franchises or sequels, and only one in five actively looks for brand‑new titles. These insights come from Bain & Company’s most recent annual Gaming Report, which gathered responses from more than 5,300 gamers spanning a wide range of ages, regions, and playing habits.
The survey asked participants to rate their satisfaction with recent releases and to describe the types of games that capture their interest. A recurring theme among the answers was frustration with what the firm labels the "unfocused middle" of the market. Players described many recent releases as overly generic, safe, and shallow—games that fail to differentiate themselves or to speak directly to a specific audience.
To illustrate this point, Bain & Co contrasted the reception of two very different products: Baldur’s Gate 3 and Concord. Baldur’s Gate 3 succeeded by zeroing in on a clearly defined niche of role‑playing enthusiasts who value deep narrative, complex character development, and high‑stakes decision‑making.
By tailoring its design, marketing, and community outreach to that precise segment, the game generated strong word‑of‑mouth and high conversion rates. Concord, on the other hand, entered a saturated hero‑shooter arena already dominated by free‑to‑play titles. Its $40 price tag struggled to persuade players who were accustomed to accessing similar experiences at no cost, resulting in a muted commercial performance. When Bain & Co examined public data for 100 titles launched since 2023, the pattern held firm: 83 % of games that pursued a narrowly defined player profile achieved commercial success, compared with only 50 % of titles that adopted a broader, less focused approach.
This suggests that specificity—not merely quality—drives purchasing decisions in today’s crowded marketplace. Player preferences for genre and gameplay style are also highly fragmented.
When asked to choose their preferred experience—story‑driven adventures, open‑world sandbox or user‑generated content, or competitive multiplayer—no single category attracted more than 26 % of respondents. About one‑fifth of gamers indicated that their choice depends on mood or that they treat the three categories as roughly equal, while 17 % selected "none of the above" or mentioned other niche genres. The report also identified two macro‑level pressures reshaping the industry: escalating player expectations and the rapid adoption of generative AI technologies. Younger gamers, in particular, are concentrating their playtime on a limited set of platforms such as Roblox, which Bain & Co describes as becoming "the centre of gravity for the entire gaming ecosystem" over the past five years.
This concentration intensifies competition for attention and underscores the importance of delivering highly relevant experiences. On the AI front, developers are increasingly leveraging generative tools to accelerate asset creation, level design, and even narrative scripting.
However, the firm warns that AI alone cannot compensate for a lack of clear audience targeting. As one analyst put it, "it lets you scale the wrong bet faster." The most successful studios in the coming years will likely be those that combine early, decisive player‑persona definition with AI‑driven efficiencies, rather than those that simply pour larger budgets or more sophisticated algorithms into undifferentiated projects. Player sentiment toward AI in game development has softened over the last twelve months.
Forty‑two percent of surveyed gamers said they feel more comfortable with AI usage 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, while 33 % said their opinion remained unchanged. Bain & Co interprets these findings as a green light for studios hesitant about the reputational risk of AI adoption.
"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 the features that resonate with a target cohort, and close the feedback loop between creators and communities. Personalisation, powered by AI, is already proving its commercial value.
Tailored communications, bespoke advertising, and content recommendations that speak directly to an individual’s play style have been shown to boost spending, especially among younger players. In the survey, 86 % of teenagers reported spending money on gaming‑related activities each month—a figure that dwarfs the 52 % of players in their 50s, 36 % in their 60s, and 27 % in their 70s who reported similar behavior. Gaming‑related expenditures encompass purchases of new titles, downloadable content, subscription services, and even tips for streamers, but they exclude hardware such as consoles or VR headsets. Notably, nearly half of all gamers indicated they buy directly from a developer’s own web store at least once a year, and 27 % do so repeatedly.
This direct‑to‑consumer trend is strongest among the youngest cohort, with 40 % of 13‑ to 17‑year‑olds reporting multiple direct purchases over the past year. Anders Christofferson, global lead for Bain & Co’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 have aligned every resource—AI tools, distribution channels, and personalisation tactics—behind that single, clear answer. In summary, the Bain & Co Gaming Report paints a picture of an industry at a crossroads.
While overall revenue growth remains steady, the path to profitability increasingly depends on laser‑focused audience targeting, savvy use of AI for both creation and insight, and a willingness to personalise the player journey. Studios that can articulate their ideal player in a single sentence and then harness technology to serve that player precisely are poised to thrive in the years ahead.