Disruption in the Gaming Industry: A Review of 2025 and What's to Come

The year 2025 was marked by significant legal developments that shaped the gaming industry. Headlines about patent disputes over game mechanics, public disagreements over earn-out payments, and the transformation of the mobile ecosystem dominated the news. These issues have the potential to redefine how games are created, monetized, and played. Let's examine some of these developments and their potential evolution in the coming year. One notable trend is the evolution of the mobile ecosystem, driven by new European competition regulations and Epic's lawsuits against Apple and Google. In April 2025, the European Commission fined Apple €500m for non-compliance with the Digital Markets Act, which requires developers to inform customers about alternative offers outside app stores. The UK's Competition and Markets Authority declared Apple and Google as having 'strategic market status,' enabling targeted interventions to ensure competition in mobile platforms. Epic's disputes with Apple and Google have had varying levels of success, with some aspects still under appeal. These developments will have significant implications for developers and players. Third-party app stores will become more prevalent, allowing players to access apps that may have been unavailable on traditional app stores. Developers and players may also see cost savings on in-app purchases due to new platform fee structures and alternative payment processors. The growth of web stores will continue, facilitating direct-to-consumer transactions. However, these new opportunities come with increased compliance complexity, as many changes will be region-locked, resulting in a fragmented user experience. The European Union has been focusing on the video games sector, with reports and regulations aimed at monetization, consumer protection, and online safety. The Digital Fairness Act may curb the way games offer virtual currency, and personalized data usage for monetization is being re-examined. Engagement practices, such as those that can lead to digital addiction, are also under scrutiny. The impact assessment on digital fairness is expected in Q2 2026, with a proposal for the legislation of the Digital Fairness Act coming in Q4 2026. Other countries, such as Brazil, are also updating their video games age rating criteria to account for new parameters, including in-game purchases and algorithmic manipulation. Online safety has been a major concern, with new legislation and regulations being rolled out globally. The UK's Online Safety Act and the EU's Digital Services Act aim to protect minors and consumers from harm. Games studios need to be aware of the changing online safety landscape and adapt their practices to comply with new regulations. Generative AI tools have become increasingly popular in game development, with nearly 90% of developers using them. However, unresolved legal issues, such as copyright protection and user data safety, remain. Players are critical of the use of generative AI, but adoption has accelerated in the mobile sector. The legal landscape will continue to evolve in 2026, and the games industry will face new challenges and opportunities. To navigate these changes, studios need to be flexible, ensure their voices are heard by regulators, and consider the court of public opinion when making decisions about their games and practices.