The global market for video‑game software has been expanding at a steady compound annual growth rate of roughly three percent over the past four years, and analysts expect that momentum to continue for at least another four‑year horizon. Despite this healthy financial trajectory, player behavior tells a more nuanced story.
According to Bain & Company’s latest annual Gaming Report – a survey that captured the preferences of more than 5,300 gamers across a broad range of regions – two‑thirds of respondents say they gravitate toward titles they already know, such as sequels or familiar franchises, while only about 20 percent actively hunt for brand‑new experiences. The report highlights a pervasive sense of disappointment among many gamers with what the firm calls the "unfocused middle" of the market. This segment is populated by games that are perceived as overly generic, safe, and lacking depth, making it difficult for them to stand out in an increasingly crowded landscape. To illustrate the contrast, Bain & Co examined the reception of two recent releases: Baldur’s Gate 3 and Concord.
Baldur’s Gate 3 succeeded by deliberately targeting a narrowly defined audience of role‑playing enthusiasts, delivering a deep, narrative‑driven experience that resonated strongly with that group. By contrast, Concord entered a saturated hero‑shooter arena and struggled to persuade players who were already invested in free‑to‑play ecosystems to spend a full $40 on the title. When Bain & Co analyzed public performance data for 100 games launched since 2023, the findings were striking. Focused titles that were built for a specific player archetype achieved commercial success in 83 % of cases, whereas only half (50 %) of the more broadly aimed, unfocused games managed to turn a profit.
This suggests that clarity of purpose and a well‑defined target audience are becoming critical differentiators in a market where genre preferences are highly fragmented. In the survey, when players were asked which type of experience they preferred – story‑driven adventures, open sandbox worlds with user‑generated content, or multiplayer competition – no single category captured more than 26 % of the vote. About one‑fifth of respondents said their preferences were roughly equal or depended on their mood at the time, and another 17 % indicated they either did not fit into those categories or preferred something else entirely.
The report also identified two major forces reshaping the industry: rising player demand for deeper engagement and the rapid adoption of generative artificial intelligence. Younger gamers, in particular, are concentrating their playtime on a smaller set of platforms, with Roblox singled out as a focal point that has become "the centre of gravity for the entire gaming ecosystem" over the past five years. This concentration amplifies the importance of understanding and serving a well‑defined audience. On the AI front, developers are increasingly leveraging generative tools to accelerate production pipelines, create assets, and even generate narrative content.
However, Bain & Co cautions that AI alone does not mitigate risk if the underlying game concept lacks a clear player focus. As the firm puts it, AI "lets you scale the wrong bet faster." The companies that will thrive, according to the analysis, 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 succinctly – essentially, a single‑sentence player persona.
Player sentiment toward AI in game development has shifted positively over the past year. Forty‑two percent of respondents said they feel more comfortable with AI usage in games than they did twelve months ago, another 44 % reported no change, and fewer than one in seven expressed increased discomfort. The trend is especially pronounced among younger gamers: 59 % of players aged 13‑17 indicated greater comfort with AI this year, while 33 % said their view remained unchanged.
Bain & Co interprets these findings as a green light for studios that have been hesitant about AI due to reputational concerns. The data suggests that the window for adopting AI responsibly is open, particularly with the younger cohorts who will shape the market in the coming decade. Moreover, AI can serve as a powerful analytics engine, helping developers decode engagement patterns, surface what resonates with specific audiences, and create tighter feedback loops between creators and players. Personalisation is another area where AI shows promise.
Tailored communications, targeted advertisements, and bespoke in‑game content can boost player spending, especially among teenagers. The report notes that 86 % of teenagers report 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 gamers in their 70s.
These activities encompass purchases of new titles, downloadable content, subscriptions, and even tips for streamers, but exclude hardware such as consoles or VR headsets. Direct purchases from developers’ own web stores are also on the rise. Nearly half of all gamers said they buy directly from a developer at least once a year, and 27 % do so repeatedly. The propensity for direct buying is strongest among the youngest segment: 40 % of respondents aged 13‑17 reported multiple direct purchases in the past twelve months.
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 – from AI tools to distribution channels to 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 commercial success is increasingly tied to laser‑focused audience targeting, thoughtful integration of generative AI, and deep personalisation.
Studios that can identify a clear player archetype, harness AI to serve that audience efficiently, and nurture a direct relationship with their fans are poised to thrive in the evolving gaming landscape.