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

The global video game industry is anticipated to reach unprecedented heights, with projected annual revenues exceeding $300 billion and a player base of 3.8 billion by 2030. According to a report by Midia Research, the industry's growth will be driven by factors such as the increasing popularity of in-game spending, particularly on cosmetic items, and the rise of subscription-based services. However, the report also notes that the industry's growth pace has slowed down, with the COVID-19 pandemic's impact in 2020 and 2021 being a significant factor. The authors of the report, Karol Severin and Perry Gresham, warn that the industry needs a new growth driver to thrive once again. They suggest that in-game spending, especially on cosmetic items, could be the key to unlocking future growth. The report forecasts that in-game spending will increase to $176.9 billion by 2030, with cosmetic spending being the main driver at $105.5 billion. The growth of the player population, increasing penetration of internet and smartphones in emerging markets, and the rise of older players will also contribute to the industry's growth. However, the report notes that the average revenue per user is expected to decline slightly between 2022 and 2030. The rise of subscriptions is expected to have a significant impact on the industry, with Midia predicting that subscriptions will account for 7.5% of global games revenues in 2030. The report advises developers to join subscriptions sooner rather than later, to focus on niche premium titles, and to 'double down on identity with in-game items and experiences.' Distributors are advised to become subscription services, to work directly with developers, and to prioritize algorithmic recommendations. Overall, the report provides a comprehensive overview of the future of the video game industry, highlighting both opportunities and challenges for developers, platform holders, and distributors.