The video game market globally reported revenue of $196 billion in 2023, outpacing streaming and box-office revenue combined, according to a new report. 

In its latest analysis, US-based management consulting firm, Bain & Co. said that the global market for video games is expected to surge by 6 percent annually through 2028 to reach $257 billion. 

"Four years after what was assumed to be a pandemic-induced boost in popularity, the video game market continues to grow in all age groups, taking share of entertainment time and revenue from other media," said the report. 

In 2023, streaming services procured a revenue of $114 billion, while revenues for music streaming and box-office receipts stood at $38 billion and $34 billion, respectively during the same period. 

Young gamers driving growth

During the study, Bain & Co. surveyed 5,000 people across six countries, and found that young gamers are driving the growth of the industry. 

According to the report, almost 80 percent of the survey participants aged between 2 to 18 are gamers. 

"52 percent of people surveyed play video games on a regular basis. But the clearest source of future growth comes from the youngest players (2 to 18 years old), 80 percent of whom identified as gamers in our survey. Young gamers spend nearly 30% of their entertainment time in video game environments," said the report. 

Bain & Co. highlighted that older players, aged above 45, are a smaller market with big potential, with 31% identifying as gamers. Television remains a strong competitor for this audience, capturing almost 40 percent of their entertainment time.

Gaming is about more than gameplay

The report further noted that gamers prefer immersive games with expansive virtual environments, where players can socialize and play an active role in generating content. 

According to the analysis, nearly half of the top 30 games can be considered immersive, and a third of gamers surveyed listed an immersive game as their top game.

"Many of these younger players consider gaming platforms such as Roblox or Fortnite a social community, similar to the way adults view WhatsApp or Facebook," said Bain & Co.