Video Gaming Report 2026: The Next Era of Growth

VIDEO GAMING REPORT 2026
How Platforms Are
Colliding and Why This
Will Spark the Next
Era of Growth
December 2025
By Ernesto Pagano, Giorgo Paizanis, Povilas Joniškis, Niels Danielsen, Francisco Smart,
Siddharth Modi, and Henry Anderson

03 Introduction
07 GenAI: Opportunities and Risks
10 Platform Evolution: From Console Wars to
Cloud Wars
13 UGC: Welcome to the New Creator Economy
16 App Stores Opening Up: A Revolution
for Distribution
19 Improving Monetization: The New Math of
Game Pr icing
23 Growth Through Disruption
24 About the Global Gaming Sur vey
24 About the Authors
Contents

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 3
As 2025 comes to a close, the
video game industry is emerging
from its post-pandemic slump
and ready to enter a new, more
upbeat era. Employment and
investment in the sector are
stabilizing; growth is starting to
pick up. This cautiously optimistic industry outlook is evident in
BCG’s latest Global Gaming Survey of approximately 3,000
gamers, as well as in numerous conversations with
industry leaders and our work with companies in the
industry. These data points suggest that the long-awaited
end to the three-year “video game winter” is imminent,
although growth will not return to the rates achieved
during the 2010s, when the industry doubled in size in a
decade. (See Exhibit 1 .)
One ground for optimism is that gamers remain passionate
about gaming. Around 55% of gamers in our survey have
increased their gaming time over the past six months. In
addition, gaming parents told us they are introducing the
children to the activity early, creating a pipeline of new
players. About 44% of such parents say that their children
are playing video games by the age of five, and two of the
three most popular first games that their children play
include a significant amount of user-generated content
(UGC): Minecraft and Roblox. (See Exhibit 2 .)
Introduction
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 4
GLOBAL GAMING REVENUE BY TYPE ($BILLIONS)
2019
183
2020
220
2021
243
202 2
236
202 3
247
2024
254
2025 E
263
2026E
281
2027E
299
2028 E
319
2029 E
335
2030E
353
174
201 8
+8% 2025
E
REVENUE
($BILLIONS)
2020 –2025E 2025E–2030E
Multigame
subscription 13 .7 10
13
Multigame
subscription 0.4 52 74
Game
transactional 0.5 66 59
Console
hardware 18. 3 3
–7
Game
transactional 69 .6 0
3
Streaming
service 0.6 57
69
Advertising 31.9 19
9
In-app
purchases 128 .7 2
5
Mobile PC and console
Cloud
CAGR (%)
+4%
+6%
Sources: Ampere Analysis; SensorTower; BCG analysis of historical and forecasted data. Note:
Console hardware data includes handheld PC devices. In-app purchases include mobile subscriptions such as Apple Arcade. CAGR = compound annual
growth rate.
Gaming Industry Growth Is Set to Increase, Ending the Post-
Pandemic Slowdown
EXHIBIT 1
Q: What was the first video game your child ever played? (%)
Mine – craft Super
Mario Series Roblox
Lego
Video
Games Mario
Kart
Series Disney
Games Just
Dance
Animal
Crossing Other
Bluey
Games Animal
Jam Peppa
Pig:
World
Adventures Before 1 year old
4 1
1–3
years old
17
10
3–5
years old
31 33
5 –7
years old
25
33
7–10
years old
16 17
10 –1 2
years old
6 5
20
18
15 14
9 8
5
3 3 2 1 1
Q: How old was your child when they had
their first digital experience? (%)
Q: How old was your child when they first
started playing video games? (%) Two of the three most popular first games for kids
are UGC games: Minecraft and Roblox
Today, more than 50% of respondents’ children
began their digital journey by age 5, and about
77% began playing video games by age 7
UGC- dominant Traditional
Sources: BCG Global Gaming Survey 2025 (N = 2,972); BCG analysis. Note: UGC = user-generated content. Because of rounding some bar chart totals do not add up to 100%.
Almost Half of All Gamer Parents’ Kids Start Playing Video Games by
Age 5, and Two of Their Most Common First Games Contain UGC
EXHIBIT 2
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 5
Adults are increasing their engagement with games and are
continuing to play later in life. In our survey, 40% of baby
boom gamers and 50% of Gen X gamers report spending
five hours or more each week playing video games. Many
adult gamers are introducing the next generation to gaming
as well, with 57% of parents saying that they introduced
their child to video games. (See Exhibit 3 .) T his
intergenerational influence helps explain why Gen Alpha
and Millennials share similar preferences for primary
platforms (PlayStation and Nintendo Switch), while Gen Z
shows a slightly stronger inclination toward PC gaming.
Millennials, the first generation to grow up with PlayStation
and Nintendo consoles at home, seem to be perpetuating
this gaming cycle across generations. (See Exhibit 4 .)
Our upbeat forecast is founded on much more than this,
however. We have identified four strategic trends that will
reshape the industry over the next five to ten years and
create new revenue opportunities. Each is powerful
individually, but in combination they are more powerful
still because they will bring in a new era of convergence,
opening huge new opportunities as gaming platforms
collide and old rules of development and distribution no
longer apply. Here are the four trends: •
Generative AI (GenAI) , which has the potential to
overhaul the building of games, will likely trigger a
flood of new games. Although many of them will be
low-grade “gameslop,” making curation and discovery
more important than ever, some may be breakthrough
games that help the industry grow. Today’s definition of
“quality” games emphasizes eye-popping graphics and
polished storylines, but in the future it may move toward
topical or novel titles. We analyzed metadata from
Steam and discovered, as of the middle of 2025, around
20% of new games disclosing the use of AI, double the
figure of a year earlier.
• The expansion of user-generated content (UGC)
will drive engagement far beyond its current audience of
mostly young users. The creator economy for Fortnite and
Roblox alone will see payouts exceeding $1.5 billion in
2025. In BCG’s Global Gaming Survey, 40% of gamers said
they are consuming more UGC than they did a year ago.
• The rise of cloud gaming will accelerate fundamental
changes in distribution, a critical part of the gaming value
chain. It will also broaden access and push gaming toward
its new, hardware-agnostic future. Cloud gaming is primed
for takeoff: 60% of players in the survey said they had
tried it, and 80% of these reported a positive experience.
• The opening up of app stores will enable developers
to pay lower fees and will give them huge new
opportunities to control their own distribution. This is an
earthquake for mobile gaming, which represents 50% of
global gaming revenues, but the tremors may be felt, in
time, across the entire gaming ecosystem.
57
15 14 13
2
Through you or
another
guardian Through
their
sibling(s) Through
an extended family
member Through
their
friends Through
school
classes/ events
Most children are introduced to gaming by their parents,
making adults the primary onboarding channel Boomers continue gaming into retirement, signaling
long-term engagement
Q: How much time do you spend playing video games? (%)
Q: How was your child first introduced to video games? (%)
<1 hour a week 5–10 hours a week
1–5 hours a week 10–20 hours a week
20–50 hours a week
50+ hours a week
17
2
8
22
5
Gen Z
2
5
2 1432
24
22
6
Millennials
2 8
1
2
21
35
22
Baby boomers
2 10
2
3
21
33
Gen X
12
1
Sources: BCG Global Gaming Survey (N = 2,972); BCG analysis. Note:
Because of rounding not all bar chart totals add up to 100%.
Adults Are Driving Growth at Both Ends by Introducing the Next
Generation to Gaming and Remaining Engaged Well into Retirement
EXHIBIT 3
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 6
Together, these trends will significantly change the
industry’s value chain. For instance, the console wars will
become increasingly irrelevant as the battle shifts to
competing ecosystems underpinned by omniscreen cloud
gaming technology. Another contest will involve
discoverability. Shelf space has become digital and infinite,
and the hard lines between platforms are diminishing as
players move between multiple devices and as games
become increasingly multiplatform. In this crowded, noisy
marketplace, developers that master community,
algorithmic discovery, and new engagement-oriented
business models, including subscr iption and
microtransactions, will be the winners. In addition, the industry is in a position to improve
monetization in multiple ways. Some gamers are clearly
feeling the cost-of-living squeeze, as more than 75% of
survey respondents told us that game prices will impact
their purchase choices. Nevertheless, we see many
opportunities for the industry to attract valuable
incremental revenue.
AR/ VR Xbox One/X/S
PC Switch 1/2
PS4/5/Pro
Mobile
RESPONDENT’S PRIMARY GAMING PLATFORM, BY GENERATION (%)
20
44
9
6
21
Gen Alpha 27
34
7
6
24
2
Gen Z
· Console gamers tend to be younger,
as consoles—Xbox, Switch, and
PlayStation—are the primary
platform for well over 50% of Gen
Alpha, Gen Z, and Millennial gamers
· PC games are popular across age
groups, with older adults enjoying
casino games and younger gamers
preferring live service games such
as League of Legends
· Baby boomers lean heavily toward
mobile gaming as their primary
platform (~ 5 5%)
2636
9
11 1
7
Millennials
1
37
2
4
7
22
8
Gen X
2
55 8
4
30
Baby
boomers
2
2
Sources: BCG Global Gaming Survey 2025 (N = 2,972); BCG analysis. Note: “Primary gaming platform” refers to the platform that respondents spend the most time on. Respondents who answered “Others” were excluded from the results. The N for AR/VR as primary gaming platform is very low (N = 40). AR/VR = augmented reality/virtual reality. Because of rounding not all bar chart
totals add up to 100%.
Younger Gamers Prefer Consoles, Particularly PlayStation and Switch,
While Gen X and Boomers Spend More Time Gaming on Mobile
EXHIBIT 4
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 7
What’s Changing
AI is overhauling the game development process, driving
innovation and reducing development costs and time-to-
market. But the technology offers no shortcuts to customer
acquisition, and this may become more of a challenge if
rapidly produced games saturate the market.
What the Numbers Show
BCG has analyzed metadata from Steam that indicates
how quickly the industry is adopting AI: around 7,300
games on the platform disclose AI applications. (See
Exhibit 5 .)
On the basis of this data, we estimate that approximately
50% of studios are now using AI. Even A A A studios,
despite initial reluctance, seem to be moving forward, as
shown by the partnership announced in October between
EA and Stability AI, which EA says will “reimagine how
content is built.” We see traction increasing in four areas (see Exhibit 6
):
• AI efficiency plays as technology improves code,
automates quality assurance, and more broadly tilts
the economics of conventional game development in
a favorable direction, which may lead to more cross-
platform games
• Game-generating tools that use GenAI to create
entire immersive, high-quality games, which some
vendors say can accelerate game development by 90%
• Intelligent nonplayer characters (NPCs) with memory,
personality, and adaptive behaviors, putting a long-overdue
end to predictable, “Welcome, adventurer” dialogue
• New types of gameplay in which GenAI co-creates the
game, adapting to player choice
Players, however, are generally not concerned. In our Global
Gaming Survey, the most significant point of resistance
involved adult gamers reacting to AI for generating art/
animation; but even there, only 10% had a negative view.
Likewise. just 7% of adult gamers had a negative view of
using AI to generate story lines and quests, and a mere 5%
reacted negatively to having AI generate NPCs and dialogue.
Even this limited degree of skepticism varies across age
groups. Child and young adult gamers tend to be much
more receptive—indeed, often enthusiastic—about the
prospect of NPCs that behave like true friends or of
hypercomplex, adaptive quests that human developers
would find difficult to script.
GenAI: Opportunities and Risks
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 8
38910
Q2 2024
51212
Q3 2024
66214
Q4 2024
71016
Q1 2025
877
18
Q2 2025
96221
Q3 2025
6
Q1 2024
217
Creative and in-game assets/graphics 6,395 (88%)
Text (story, dialogue, descriptions) 1 , 317 (1 8%)

Voice and sounds 1 , 1 34 (16 %)
User interface/experience 1,092 (15%)
Marketing assets 982 (13%)
Chatting and NPCs 1 4 8 (2%)
Other 1 4 5 (2%)
G
am es o n S te a m r e po rtin g u se o f G en A I ~7 ,30 0
Approximately one-fifth of titles released in Q3
2025 disclosed AI integration Asset creation is the main use; narrative, audio,
and user experience are secondary
Game relea se s with AI (% ) Games with AI (# )
The top three genres disclosing AI use are
casual (20%), adventure (16%), and action (14%)
APPLICATIONS
DISCLOSING AI USE
Source: BCG analysis of data from scraped from Steam platform as of August 2025. Note: NPC = nonplayer character.
GenAI Is Becoming More Common in Game Development
EXHIBIT 5
Modl.AI and Mighty Build & Test
are complementary AI platforms
that automate QA, r epresenting
the shift to AI-driven
production pipelines . Bots
simulate player behavior to
detect issues earlier, and
automation shortens release
cycles and raises code quality. BitMagic and Series
Entertainment are at the
forefront of a new wave in game
development, using GenAI to
make creative, immersive,
high-quality games in less
time and at lower cost .NVIDIA’s ACE and Inworld AI
are platforms for building
intelligent NPCs . Generative AI is shifting games
from static menus to
co-creation platforms .
· Modl.AI’s virtual player bots
explore builds and find defects
to speed up testing and
iteration.
· Mighty Build & Test runs scalable automated
build-and-test pipelines that
validate games across
devices 24–7. · BitMag ic’s prom
pt-based,
browser-based solution now
has around 1.2M users.
· Series raised $28M in funding.
Its Rho Engine is a multimodal
full-stack creation platform
that speeds game development
by 90%. · ACE delivers a full GenAI stack
for natural, real-time character
interaction (e.g., in Naraka:
Bladepoint).
· Inworld builds tools and models for powering real-time
conversational AI in interactive
apps and games. · AI Roguelite
is a fully
GenAI- driven RPG roguelite
where LLMs generate every
element (locations, items,
and so on), using probabilistic
simulations to drive both
combat and narrative.
· Whispers from the Star is a GenAI- driven narrative
sandbox game where players
interact with an intelligent
avatar through natural
conversation that evolves
with every dialogue.
Dr iv ing
efficiency Generating
games Making better
NPCs Creating new
gameplay
Sources: SteamStore; BCG research; Nvidia News. Note: LLM = large language model; NPC = nonplayer character; QA = quality assurance; RPG = role-playing game.
How GenAI Is Changing the Games Industry
EXHIBIT 6
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 9
Significantly, the gamers in our survey were reacting to
features they have not yet experienced. A tsunami of low-
grade AI-created games could quickly sour their views.
Seizing the Opportunity
It is a mistake to think of AI as nothing more than a way to
relieve the pressure of development costs, which can reach
$300 million for an A A A-rated game. AI’s promise of faster
development cycles and new types of content with lower
development costs could trigger a wave of innovation and
experimentation. AI can also have a huge impact on the
management of live service games, among other forms of
live operations content management.
It also opens the way for a new breed of AI-native studios
whose output may complement rather than compete with
traditional and somewhat hand-crafted A A A game
developers. Initially, these efforts may produce lower-
quality results, but Clayton Christensen’s The Innovator’s
Dilemma, one of the most important academic studies of
disruptive business models, observes that low-end
disruptive innovations can quickly improve under the right
conditions. In the gaming world, consumers may
appreciate having more variety and faster refresh. This
may impact discoverability, however, as blockbuster games
(with their blockbuster budgets) will have to work harder to
stand out in a market crowded with AI titles.
Crucially, realizing this broadly positive future for the
industry depends on using AI wisely. Poor-quality, Data from our survey of developers reveals that some are
moving fast while many others are holding back. (See
Exhibit 7 .)
derivative experiences may overwhelm undercurated game
stores, burdening AI with an image problem and creating
reputation problems for developers who approach AI more
thoughtfully. Copyright and intellectual property issues are
another concern. Major studios will not stand idly by if new
developers produce lookalike content trained on their
rivals’ assets or even code base.
Leaders must establish clear principles for AI deployment:
transparency, curation, and the redeployment of savings
into more ambitious creativity. AI should expand what
games can be, not erode the creative canvas.
A further issue relates to trust and the human touch, the
sometimes quirky elements that help gamers connect
emotionally with the games they love. Even AI-native
studios must find a way to generate that kind of personal
connection.
The Takeaway
Deployed with care, AI is a generational opportunity for
game developers. But there are risks too. If AI creates a wave
of new games, curation and community-driven discover y will
become even more important as vehicles for ensuring that
gamers can find the experience they want.
Customer/gamer pushback
Q: What are the top three obstacles (if any) you face or expect to face
when adopting GenAI, including publishers and outsourcing vendors?
Cybersecurity and data privacy 43
Intellectual property/copyright issues 33
Employees lack capability 28
Low reliability of GenAI outputs 28
Potential bias/offensive output 24
Technology not ready for adoption 19
High cost of implementation 9
Latency is too high 3
TOP FIVE ISSUES (%)
50
Source: BCG 2023 Game Developer Survey (N = 81).
Developers Still Fear Pushback from Gamers over GenAI Use
EXHIBIT 7
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 10
What’s Changing
Cloud gaming is ready to go mainstream, which will
transport the industry to a new hardware-agnostic era.
The ramifications of this shift will affect companies and
individuals across the gaming ecosystem, from console
makers to developers to distributors.
There are three models of cloud gaming:
• Pure plays, such as Nvidia’s GeForce Now, are disrupting
the hardware-focused gaming market by offering a
console-level gaming experience on almost any equipment
a player has on hand, with no downloads required.
• Multigame subscriptions, such as PlayStation Plus
Extra, offer a wide range of downloadable games for a
single monthly payment. Over time, these services can
transition to a cloud-based model.
• Hybrid/bundled models, such as Xbox Game Pass, offer
a flexible mix of downloadable games and streaming.
Platform Evolution: From Console
Wars to Cloud Wars
What the Numbers Show
In BCG’s 2025 Gaming Survey, 60% of players said that
they had tried cloud gaming, and 80% reported a positive
experience. (See Exhibit 8 .)
This level of positive response may come as a surprise to
people who thought that cloud gaming could never match
local processing. Today, however, the high-speed, low-
latency links needed to deliver a great gaming experience
with just a $40 controller and low-end laptop are much
more widely available.
Despite these tailwinds, about 70% of gamers who have
tried cloud gaming spend less than a quarter of their time
using it. But given the positive user experience and other
factors, we project that global revenues for cloud gaming
will grow from around $1.4 billion in in 2025 to roughly
$18.3 billion in 2030. (See Exhibit 9 .) That amounts to a
compound annual growth rate above 50%, taking into
account streaming pure plays plus a portion of hybrid and
bundled services. At the same time, player numbers will
rise rapidly.
Not surprisingly, Sony, Microsoft, Netflix, Apple, and
Amazon are all trying to establish a strong position in
relation to this new revenue stream.
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 11
01–10 11–25 26 –50 76 –10 0
51–75
4
33 34
21
1
7
However, gamers who use cloud gaming also play on other platforms
HOW CLOUD GAMERS APPORTION THEIR GAMING TIME (%)
TIME DEVOTED TO CLOUD GAMING (%)
80%27%
About 70% of cloud gamers spend less than 25% of
their gaming time using this technology
of gamers said they
are regular or heavy
users of cloud gaming
of gamers who tried it reported an overall
positive experience
Sources: BCG Global Gaming Survey (N = 2,972); BCG analysis.
Cloud Gaming Can Deliver a Good Experience
EXHIBIT 8
CLOUD GAMING USERS (MILLIONS) CLOUD GAMING MARKET ($BILLIONS)
0.81.01.4 3.7
6.010.1
13.5
18.3
3 4513 2136
48
65
2023 2024
20252026E 2027E2028E2029E 2030E 2023202420252026E 2027E2028E2029E 2030E
Will pass
50 million
users by
2030
+54%CAGR
+57%CAGR
Source: BCG GEMS forecasted market data. Note: CAGR = compound annual growth rate.
Cloud Gaming Is Ready for Liftoff as the Gaming Experience Improves
EXHIBIT 9
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 12
Seizing the Opportunity
The impact goes far beyond the potential influx of new
players. For developers, it includes several considerations:
• Frictionless gameplay may enable higher
conversion. Because no download is required, players
can start a session from ads, emails, or directly on the
store page, which promises a massive lift in conversion
rates. Gamers will appreciate frictionless play too, as it
allows them to take their library and progress with them
as they move from laptop to console to tablet to phone.
• Cloud gaming offers all the benefits of cloud-
native development. Creators can build, test, and
iterate without local builds. The technology also unlocks
features that are difficult to run on local hardware, such
as server-side AI and real-time world data.
• Users get the benefit of unified patching and
content rollout. “Canary builds” test new features
on small groups of players, after which companies can
quickly roll them out to the global player base.
Most importantly, cloud gaming changes the game
distribution. Games and the hardware on which they
have been separate products for more than 40 years. The
cloud era could see a rebundling of games with the cloud
hardware they run on. Multigame cloud subscriptions
will shift developer focus from units shipped to hours
played, rewarding the stickiest games and driving new
marketing strategies.
This does not mean the end of dedicated gaming hardware
such as consoles. There will always be people who want
the plug-and-play experience that these devices deliver.
Instead, games will offer players multiple entry points
across various devices, including consoles. Indeed, there
may be openings for new types of gaming hardware, as
underlined by Valve’s announcement in November that it
would again try to establish a market for a PC/console
hybrid with the Steam Machine, following the success of
its portable Steam Deck. The future is not hardware-less,
but increasingly it will be hardware agnostic.
By 2030, as cloud gaming continues to increase as a share
of play time, industry power structures could look very
different. As platforms become less important, incumbent
players will have to make difficult choices. Successful
console makers will recognize that any shift to new models
could cannibalize profitable existing businesses and
threaten the next generational upgrade cycle. New players will have big opportunities—including with
tech giants such as Amazon, streaming powerhouses such
as Netflix, and ecosystem players such as Apple, which have
storefronts, billing, and software on millions of devices.
Some players are already positioning themselves.
Microsoft’s January 2022 purchase of Activision for around
$70 billion, the richest industry M&A ever, was in part
designed to position Microsoft for the new, cloud-enabled,
era in which almost any device can function as a gaming
platform. In November 2025, Sony announced that gamers
can now stream some of its most iconic games from the
cloud to its PS Portal handheld device, with no PlayStation
console required.
The Takeaway
For some time, PC gaming and the rise of mobile have
been eroding the console’s role as the central pillar of
gaming. But cloud gaming is taking this disruption to a new
level, eroding the hard lines between platform types and
creating a converged gaming experience. For developers,
navigating this change and its implications—especially the
changes to distribution—is vital. They must master
monetization within subscription products, which means
retaining those rights and valuing them appropriately.
Engagement will be vital in an age of all-you-can-eat
content libraries.
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 13
What’s Changing
UGC has emerged as a vibrant, rapidly growing creator
economy, with payouts that will reach $1.5 billion in 2025
from just two games. We expect UGC to drive increasing
engagement among young gamers, but it also has latent
possibilities among older demographics.
UGC: Welcome to the
New Creator Economy
What the Numbers Show
One dramatic measure of the new creator economy is the
2024 payouts by Roblox and Fortnite: $923 million and
$352 million, respectively. Equally dramatic is data from
the BCG Global Gaming Survey indicating that UGC is
driving younger gamers’ engagement. (See Exhibit 10 .)
Of course, some games have long encouraged user-
generated modifications. But creation often required skills
approaching those of a full-time game developer. Now,
advances in technology have democratized and monetized
UGC, either natively on-platform or via YouTube or other
streaming services.
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 14
Roblox has 1.6 million monetized creators who have
created more than 100 million UGC experiences to date.
One of Roblox’s biggest hits, Grow a Garden, an
intersection of UGC and another important trend, cozy
gaming, had 16 million concurrent players at its peak in the
summer of 2025.
The experiences may seem low-fidelity and limited by
primitive graphics. But the definition of gaming quality is
evolving, and platforms that welcome UGC contributions
are thriving on social interaction and novelty. The result is
a living, breathing experience that changes with each login
because users are building it in days, as opposed to the
multiyear development cycles of big titles.
For people who are not inclined to create new gaming
experiences, UGC offers a whole other world in streamed
gaming. The biggest names in streaming have real
influence: in our survey, 55% of gamers said they would try
a new game if their favorite creator switched to it. Seizing the Opportunity
Developers that want to harness the power of UGC to a
particular game need to build a creator economy that fits
the vibe of the game and the demographic it attracts.
Consider the very different economies built by UGC
behemoths Roblox and Fortnite. Roblox users are children
and teens, with 56% of players under the age of 16. Its
ecosystem is grassroots- and commerce-driven, with
virtual playgrounds, classrooms, and malls that mimic the
real-life world of its players. Roblox thus acts as a broad
creator economy platform with deep commerce integration
that presents a vast range of low-fi content to its engaged
young audience.
Fortnite, in contrast, is tuned to a somewhat older
demographic; 60% of its players are 18 to 24 years old, and
the ecosystem leans into pop culture with an endless
stream of curated, IP-centric tie-ins ranging from Nike to
K-Pop Demon Hunters. Its audience gets A A A sizzle plus
engagement with the biggest youth brands. which build
UGC under tight developer control.
Strongly agree Slightly disagree
Agree Disagree
Slightly agree Strongly disagree
Neutral
More than 40% of gamers are consuming
more UGC than they did a year ago… … but only 10% to 15% of gamers have created content
Q: Select how much you agree/disagree
with the following statement: I consume
more UGC now than I did 12 months ago (%)
Interacting more with UGC
Q: Select all the ways you have interacted with user-generated
content in the past (%)
None
23
I have
played games
created by another user
23
I have usedin-gameitems/
modes
created by another user
23
Got
interested in UGC
but never
interacted with it
20
I have
watched
someone
else stream a gamingsession
20
I have
created
an in-game
item/mode and shared it with
others
15
I have
streamed a gaming
session for others
to watch
11
I have
created
games for others to
play on an existing
platform
11
Creators
8 14 20 25 11 9 13
Sources: BCG Global Gaming Survey 2025 (N = 2,972); BCG analysis. Note: UGC = user-generated content.
Gamers Are Interacting With UGC, but Creators Are Still a Minority
EXHIBIT 10
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 15
Fortnite maps generated by professional users originally
served as a way to keep players engaged between the
game’s main seasonal chapters, but the developer is now
upping its bet on UGC. Fortnite’s most recent changes,
effective December 2025, underline this evolution: creators
can sell durable and consumable goods from their Fortnite
islands; the platform offers incentives for players to bring
in new or previously inactive players; and creators will
receive an ad-revenue share of 100% for their creations for
a year. Perhaps just as important, the creator community
has access to new tools for discovery and engagement.
Roblox and Fortnite are in prime position to evolve into
full-fledged distribution platforms that are leaders in the
next stage of the gaming industry—one in which games
operate as hardware-agnostic platforms, in contrast to the
old paradigm in which consoles and other hardware
enabled the platform and distribution.
UGC today focuses on younger gamers, but older gamers
are interacting with it, too. In our survey, 15% of gamers in
their 60s or older said that they had watched someone
else’s stream. And 28% of this group said that they were
interested in UGC although they had not yet tried it. (See
Exhibit 11 .) The Takeaway
UGC represents a vast opportunity, initially for games with
a base of young players who seek self-expression as
content creators, but in the longer term for a much
broader demographic. UGC offers much more than
improved engagement, however. It is accelerating the
industry’s migration toward a hardware-agnostic era in
which games function as platforms.
Developers that want to harness UGC’s power should
prioritize building an ecosystem that fits the game and
offers the right incentives.
Q: Select all the ways you have interacted with user-generated content in the past
RESPONSE (%)
None Played games
created by
another user Used in-game
items/modes Created an
in-game
item/mode Created games
for others to play Streamed a
gaming session for others Interested in
UGC but never
interacted with it Watched
someone
else’s stream
Age-related
preferences Universal
desires
Data show ing
generational shifts
43
30
16 15 15 9
17
27 28 31
6
15
29 32 31
5 9
20 21 18
4 815 13 14
3 914 14 13
28 23 19 17 17 15 20 19 19 25
Sources: BCG Global Gaming Survey 2025 (N = 2,972); BCG analysis. Note: Generational cohorts are defined by age as follows: Gen Alpha, 12 and younger; Gen Z, 13 to 28; Millennials, 29 to 44, Gen X, 45 to 60; baby boomers, 60 and older. UGC = user-generated content.
Baby boomers Gen Alpha Gen X Millennials Gen Z
Gen Z and Millennials Are Interacting More With UGC; Older Gamers
Show Potential
EXHIBIT 11
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 16
What’s Changing
In the wake of regulatory and court action, app stores are
opening up, granting developers, particularly in mobile,
opportunities to introduce new approaches to distributing
games and monetizing users.
App Stores Opening Up:
A Revolution for Distribution
What the Numbers Show
A growing number of gamers are purchasing games from
developer-owned web stores instead of from traditional
platforms. In our survey, 33% of adult gamers and 40% of
teens said that they had made at least one such purchase.
Developers could push those percentages higher by
addressing security concerns and increasing incentives.
(See Exhibit 12 . )
Many of these purchases will be for game play on PCs,
traditionally the most open gaming platform. In contrast, our
conversations with game developers suggest that this year
85% of transactions on mobile, currently the most closed
platform, will have taken place via the App Store or Play
Store, despite the limited degree of opening there so far.
The opening up of app stores has major implications for
gaming. We estimate that mobile in-app purchases in 2025
will total almost $130 billion, accounting for nearly half of
global industry revenue.
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 17
Seizing the Opportunity
The app store model today is at a turning point. Regulatory
action in Europe and court rulings in the US are forcing
closed mobile platforms to open their doors, clearing the
way for alternative payment systems, sideloading, and
increased in-app purchasing freedom.
For players, using alternative app stores is no big deal.
Once bought, their new game resides on their device,
alongside other purchases. It’s less of a hassle than
downloading a game and then logging into a developer-
specific platform on a PC. In addition paying lower fees, developers will gain a range
of opportunities through new distribution channels,
including the ability to build cross-platform ecosystems
that were impossible just a few years ago, deepening player
engagement without the need to contend with a
gatekeeper app store. This will further erode the barriers
between platforms.
Our discussions with developers point to rapid changes in
how gamers spend their money on mobile gaming. Overall,
revenues will rise, but incumbent app stores will see some
income erosion. Growth will come from webstores and
other newly accessible distribution channels that are ready
for takeoff. (See Exhibit 13 .)
Adults Te e n s
Gamers are aware of developer web
stores, and are purchasing from them There are strong, clear motivators
beyond price…
Q: Why did you choose to purchase
from a developer’s webstore? (%) …but developers must work harder
to overcome barriers
Discounts/
rewardcodes Special
items/
add-ons More
convenience Brand
loyalty Regular
game
updates Security
concerns Wasn’t worth
the additional effort Did not want
to reenter
my credit card Other Purchaseddirectly
from
webstore Aware of
webstore
but never
purchased Play mobile
games
but never
purchased Not aware
and did not purchase from
webstore Don’t play
mobilegames
30
40
28 33
21
14 10 7 8 6
50 54 52
41 43 46
35 32 34
24
39 38
50 49
28 26
4 3
Q: When playing mobile games, what
has been your experience with making
in-game purchases directly through a
game developer’s store? (%) Q: Why did you NOT choose to
purchase from a developer’s
webstore? (%)
Source: BCG Global Gaming Survey 2025 (N = 2,972).
Gamers Are Motivated to Buy on Developer Websites, but Pain
Points Remain
EXHIBIT 12
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 18
Developers have three opportunities, each one more
attractive than what traditional closed ecosystems offer:
• Manage payments themselves but use existing app
stores for distribution. This opportunity is the result
of Epic Games’ landmark US court victory over Apple,
which forced the phone-maker to allow external payment
links in iOS apps. Download fees could fall from 30% to
perhaps 5%, a huge boost to developers’ margins.
• Offer their games via cloud streaming. In 2024, Apple
changed its terms of service so that cloud-streamed games
could use developers’ payment systems, too, instead of the
App Store’s high-commission system.
• Launch their own app store. The EU’s Digital Markets
App has been the regulatory driver here. This bold
option requires substantial investment, but it permits
sideloading games with new business models and
monetization strategies built on the richer player data
that developers can collect. Besides creating single-
developer (or even single-game) app stores, developers
can form consortia to reduce costs and build scale. Games developers will have additional options as the app
store ecosystem grows. For instance, ads on video
streaming services drive a huge number of app installs.
These streamers could direct these to their own game-
developer-friendly app store, which would not require
developers to set up their own stores; ideal for independent
or smaller developers.
One caveat involves security: our data shows that
developers must work harder to reassure users on issues
such as security, fraud, and refunds.
The Takeaway
For developers, the opportunity is clear: new app store
distribution models are quickly emerging, especially in
mobile. Developers that pivot strategically will reduce their
platform dependency, improve their profitability, and find
new avenues to reach users. Those that rely on today’s
dominant app distribution systems will likely lose ground.
IN-APP PURCHASING OF MOBILE GAMES ($BILLIONS)
129
116
114
113
6 –7
14 –16 32–34 111
166
2025
2020 2030
Market breakdown
ESTIMATED SHARE OF TOTAL (%)
202020252030 +4% CAGR
8–9
3–4
0 –1
~1
0
Transactions outside app in
web stores 1 ~6 –7 ~20
Transactions inside app via
Apple/Google (incumbent stores) 99 9067
Transactions inside app via
third-party payment systems 0 ~3– 4 ~8 –10
0~ 0 –1 ~3–5 Transactions inside app via apps
downloaded from alternative app store
Sources: BCG GEMS data; 2024 Survey of Game Developers (N = 60); expert interviews with leading publishers (N = 40). Note: CAGR = compound annual growth rate.
Mobile Gaming Will See Modest Growth, but New Payment and
Download Channels Will Quickly Grab Share
EXHIBIT 13
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 19
What’s Changing
The convergence of UGC, AI, cloud, and opportunities
around app stores will create a new playbook for every
stakeholder in gaming. But even before these reach full
force, the industry must better monetize the value it
creates in games.
What the Numbers Show
BCG’s survey data confirms that gamers generally are
feeling squeezed economically, with about 65% using
tactics such as waiting for discounts to save money. (See
Exhibit 14 .) The result is a split market. Approximately
45% of gamers are serious fans who are willing to buy even
at higher prices—a good omen for GTA 6, the biggest
planned launch of 2026, which is likely to come with a high
price tag. Another 23% or so are neutral, but about 30%
said that their purchasing will fall if prices rise.
Improving Monetization:
The New Math of Game Pricing
In terms of age group, spending tends to decline as family
responsibilities increase. Among survey respondents in
Gen X, 73% said that they spend less than $100 per month
on video games; among baby boomers, many of whom
prefer low-cost or free mobile gaming, the proportion of
low-spenders is even higher, at 86%. Nevertheless, games
remain a great value for those that play a lot. The cost per
hour is 30% to 80% lower than movies and video
entertainment, and premium game prices have declined at
an inflation-adjusted rate of 1% per year over the past two
decades. (See Exhibit 15 .)
Our survey data yields some encouraging signs that in the
US, at least, gamers’ willingness to pay has increased.
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 20
More than 75% of gamers say prices will heavily
impact their purchase choices
Q: Please select how much you agree with the
following statements: Price significantly influences
my choice of brand/product/service (%)
2 351
6 2
5 2
8
20
Strongly
disagree D
is a gre e Slightly
disagree N
eut ra l Slightly
agree A
gre e Strongly
agree
About 65% of gamers have tactics to limit
their spending
Q: When multiple games in the same franchise are
released in the same year, which of the following
do you do? (%)
4 9
31
22
11
6
Buy one
and skip
the others B
uy a ll
Wait for
discounts Prioritize
downloadable content Othe
r
Sources: BCG Global Gaming Survey 2025 (N = 2,972); BCG analysis.
Most Gamers Are Price-Conscious and Are Prepared to Wait
for Discounts
EXHIBIT 14
30.00
Music
purchase
13.00
Movie
purchase
2.40
Premium
(full game)
0.47
Music
streaming
0.30
Video
streaming
0.20
Fre e –
to -play
Consumer cost per hour of entertainment by
medium and format for major categories, as
of 2025 ($) 1 Typical inflation adjusted price of a
standard-edition AAA full game over the
past 20 years ($)
–82%
–33%
–1%CAGR
2005
50
84
2010
60
89
2015
60
82
2020
60
75
2025
70 71
2026
80
Nominal Inflation-adjusted (2025) Projected nominal
OWNERSHIP ACCESS
Sources: BCG G\b 1Data is calculated as cost over average hours consumed.
Premium Games Are a Good Value, and the Average Launch Price
of AAA Games Has Declined When Adjusted for Inflation
EXHIBIT 15
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 21
Seizing the Opportunity
The industry urgently needs to derive more value from the
amazing experiences it offers. We have identified four
important strategic trends that will boost revenue:
• Tiered pricing will increase, for both purchases
and subscriptions. Games are now selling at a broader
range of price points. This divergence marks a return
to the pricing of the 1990s, when game prices differed
twofold or more. At the high end, the pricing of Grand
Theft Auto 6, due for release in 2026, will receive close
industry attention. For the best A A-rated games, such as
the 2025 role-playing sleeper hit Clair Obscur: Expedition
33, however, $49.99 is a realistic price that still rewards
the substantial investment that even these more limited
games require. Similarly, subscriptions should be priced
in tiers that reflect the value they deliver.
• Developers will use windowing to maximize
lifetime revenue. Window ing involves stagger ing the
release of titles across platforms, regions, and price
tiers, in part to prevent loss of value. The practice was
common in Hollywood in the days before streaming,
when studios carefully managed their releases across
different countries, rental and purchase DVDs, and
broadcast TV sales to maximize revenues and protect valuable intellectual property. To sustain the value of
tentpole franchises, developers should adopt smarter
windowing strategies: launch with a premium price,
time discounts carefully, and use subscription access
to collect long-tail revenues. The goal is to optimize
revenue from both free-spending and price-sensitive
gamers. Another smart strategy is to release games
outside the peak periods of February–March and
August–December; during those windows, many gamers
buy and start playing a single title, and wait for the
rest to be discounted. Developers can extend a game’s
revenue lifespan through careful management of when,
where, and at what price they offer that title.
• Alternative monetization will expand rapidly.
Many free-to-play games on mobile already deploy these
strategies to great effect. As strategies such as in-game
transactions and downloadable content increase, the
proportion of gamers’ spending that goes to outright
purchase of new titles will fall. Titles that receive
updates every 12 months are ideal for subscription,
lowering developers’ marketing costs by avoiding an
annual sales battle. From Millennials onward, younger
generations are increasingly likely to prefer live-service
games to single-player games and to prefer accessing
games via subscription to buying them individually. (See
Exhibit 16 .)
I prefer live-service games to single-player games (%) I prefer accessing games via subscription over buying
individual games (%)
4 4 9 27 291710
66 10 26 221713
1111 13 31 18105
17 1210 39 1273
6 5 11 27 19239
39 11 21 261910
9911 24 191910
141312 28 16125
23 1611 25 1474
8 8 10 22 231910
Gen Alpha
Gen Z
Millennials
Gen X
Baby boomers Gen Alpha
Gen Z
Millennials
Gen X
Baby boomers
Source: BCG Global Gaming Survey 2025 (N = 2,972).
Strongly disagree Slightly agree Agree Strongly agree Disagree Slightly disagree Neutral
Gaming Preferences Reveal Generational Divides in Format and
Monetization Models, Including Access-Based Models
EXHIBIT 16
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 22
• In-game advertising will emerge as a stronger
revenue stream. Mobile games typically earn 20%
of their revenue from advertising, but we see plenty of
underexplored opportunities on bigger screens. (See
Exhibit 17 .) The Takeaway
For the money, gaming delivers more value than many
other hobbies. This is a sign that the industry needs to
work harder on pricing, not just to raise revenue but also to
protect the scarcity and visibility that make big games
significant events in popular culture.
Gaming accounts for 12.5% of gamers’ time spent
with media, but only around 3% of media ad spending Around 30% of gamers wouldn’t mind sponsored listings
in a games store; hardcore gamers are most open to this
Q: Agreement with “I don’t mind sponsored listings
within my gaming store” (%)
3
6
9
12
15
0 1
7
2
5
2
7
2
7
4
<1 1
1
2
6
2
8
3
0 5
1–5 Hours spent on gaming weekly 8
1
9
2
0
4
4
1
0
11–20 9
1
5
1
8
4
5
1
3
21–50 1
0
1
0
1
4
4
3
2
2
51+
1
1
2
1
2
4
2
7
6 –10 7
Time spent gaming (%)
Gaming ad revenue
as share of total (%) ™—”“Œ‘ž†Œ—ŠŠ ™—”“Œ‘ž‰Ž˜†Œ—ŠŠ

Neutral
3 .5
2029 E
1
2
2027 E
1
2
3
12 .5
2025 E
3
202
3
1
3
3 202 1
1
3
2
1 .5
201 9
9
Sources:
BCG GEMS; PQ Media; BCG Global Gaming Survey 2025 (N = 2,972).
Advertising Is Undermonetized in Gaming, Considering Its Share
of Attention
EXHIBIT 17
BOSTON CONSULTING GROUP

HOW PLATFORMS ARE COLLIDING AND WHY THIS WILL SPARK THE NEXT ERA OF GROWTH 23
As the gaming industry enters 2026, new pathways to
growth are emerging. But those pathways are open only to
those who embrace disruption and discard much of the
industry’s old playbook. (See Exhibit 18 .)
Cloud gaming ecosystems, user-generated content, AI, and
the opening up of app stores will drive rapid changes—both
positive and negative, depending on where in the value
chain a company sits—that will affect every aspect of the
industry. Collectively, they will redefine game production
and distribution, which in turn will reshape the gaming
landscape and redefine consumer expectations. Improved
monetization and the shifting app store ecosystem will have
a more immediate impact on companies’ bottom line.
Growth Through Disruption
By 2030, we should see an explosion of gaming content, an
expansion of the global audience for games, and broadening
expectations for omniplatform gaming. We anticipate a
healthy, growing market, although there will be on the A A A
business model will experience continued pressure, and
top-tier developers will need to invest further in strategies
related to brand, franchise, intellectual property, platform
curation, subscr iption, and w indow ing. Together, these
efforts will challenge and reshape the current landscape
and alter value pools.
Executives who understand these changes and position
their businesses to seize the opportunities will define
gaming’s next decade.
Explosion
of content
Discovery and curation
will become decisive
platform advantages as
tens of thousands of new
professional and UGC
titles flood the market.
Global TAM
expansion
Cloud distribution will
reduce large upfront
investments and
expand access, bring ing
millions of new players
into gaming, particularly
if new experiences can
be unlock