Video Game Industry Projected to Surpass $300 Billion in Revenue by 2030

The global video game industry is anticipated to reach annual revenues of over $300 billion and attract 3.8 billion active players by 2030, according to a report by Midia Research. However, the report's authors caution that the industry's growth pace has likely peaked, with the COVID-19 pandemic artificially boosting growth in 2020 and 2021. The industry is expected to return to growth in 2023, but at a rate lower than inflation. To drive growth, the industry will need to find new revenue streams, such as in-game spending, particularly on cosmetic items. The report forecasts that in-game spending will increase to $176.9 billion by 2030, with cosmetics driving the growth. The rise of subscriptions is also expected to significantly impact the industry, with 318.5 million active subscriptions predicted by 2030. However, this shift towards subscriptions may dilute the need for individual game purchases, affecting traditional premium game publishers and developers. The report advises developers to join subscription services, focus on in-game items and experiences, and embrace advertising and product placement. Distributors are cautioned to adapt to the rise of subscription services and prioritize working directly with developers to provide services such as funding, marketing, and testing.