Gaming market will reach $280 billion by 2031, while gaming services will become less frequent, according to Midia Research report
According to a new report by Midia Research, the video game market will grow by 4.6% to $236.9 billion in 2026 and is expected to reach $280.1 billion by 2031.
Here's What We Know
As for software, the company forecasts revenue growth of 4.4% year-on-year to $203.2 billion in 2025. This growth will be supported by "several premium releases" this year and next, including Grand Theft Auto 6, "Switch 2 launch lineup games," as well as projects such as Monster Hunter Wilds and Assassin's Creed Shadows. By 2031, software revenues are estimated to grow to $237 billion.
PC software is "projected to outpace other segments through 2031," reaching $44.5 billion in 2025, up from $41.6 billion in 2024. Console software is estimated to reach $47.9 billion this year, up from $45.1 billion last year, while the mobile segment is forecast to reach $110.9 billion in 2025, up from $108.1 billion in 2024.
Hardware revenues are forecast to grow 8.4% year-on-year to $20.6 billion, driven by the launch of the Switch 2. This follows a 19.9% decline in 2024, "as Xbox struggled to focus on services and off-platform revenues and the original Switch approached the end of its life cycle". Hardware revenues are estimated to reach $24.6 billion in 2031.
According to Midia, the key change for the rest of the decade will be a shift to premium titles following a "glut of games-services". As a result, revenues from in-game purchases are projected to decline to 67% by 2031.
The company predicts that consoles will remain the most popular choice for premium games, with the ecosystem accounting for 60% of the market, compared to 38% for PCs.
The number of global players is expected to grow to 3.27 billion in 2025 and 4.02 billion by 2031. Midia notes that cross-media is adding potential consumers with adaptations such as HBO's The Last of Us and Amazon's Fallout.
However, it is predicted that "most new players will enter the market through emerging countries and regions such as Latin America, Southeast Asia and Africa". Midia notes that as internet access and online infrastructure improves, more players will emerge from these regions.
"The gaming market will continue to be challenging, and these difficult market conditions are forcing developers to think smarter to succeed," said Midia games analyst Reece Elliott. "Fortunately, the industry is filled with some of the smartest, most creative and passionate minds in the world. Just don't expect double-digit growth."
Elliott continued: "Firing employees who create value is short-sighted. At the end of the day, a big reason why Nintendo, FromSoftware and Naughty Dog are so successful is because they retain and nurture talent for the long term.
"My recommendation: less waste, less trend chasing, more innovation, more data-driven segmentation, and better (read: humane) treatment of the people in the industry who create value. The market cannot continue to cater to the same players and expect the pie to grow."
Source: Midia
