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Analyzing the 2025 Gaming Landscape: Insights from Bain & Company

The gaming industry is undergoing a dynamic transformation, driven largely by the rise of platform-style games and a shift towards direct-to-consumer distribution models. Bain & Company's annual Gaming Report, released recently, gives us an in-depth look at these changes and the challenges they pose to traditional AAA game studios.

An Overview of the Gaming Market

As of 2024, the global video game market reached an astounding $219 billion, projected to grow at a rate of 4% annually until 2028. However, the report reveals that this growth is now primarily concentrated in a select few titles, many of which utilize user-generated content (UGC), cross-media intellectual property (IP), and innovative distribution strategies that bypass traditional storefronts.

Daniel Hong, the head of Bain's global Media & Entertainment practice, notes a generational shift in how games are experienced. "Today's premier games are platforms for creativity, social interaction, and storytelling, rather than mere entertainment products. Those studios embracing this broader engagement paradigm will shape the future of gaming, while those resistant to change risk being left behind."

Platform-Style Games on the Rise

Platform-style games, which provide vast worlds, community features, and creator tools, are seeing user growth soar, reaching double-digit increases. Bain identifies these games as crucial components of the gaming ecosystem, pulling in players, creators, and brands alike. Independent developers, free from the pressure of legacy costs, are thriving and have recorded a compound annual growth rate (CAGR) of 22% for PC game revenues from 2018 to 2024, compared to just 8% for traditional AAA/AA studios.

User-Generated Content Is Here to Stay

Bain's comprehensive 2025 survey, which included over 5,000 gamers across six diverse countries, reveals that nearly half of content creators are devoting more time to in-game content creation than the previous year. This trend is particularly evident among younger players aged between 12 and 17, with their gaming preferences significantly influencing the industry landscape. Players now value customization, social connection, and creativity more than sheer graphical fidelity. Consequently, the industry's historical formula of improved graphics and sequels is becoming obsolete.

Shifting to Direct-to-Consumer Models

An interesting trend laid out in the report is the shift away from traditional digital storefronts as the main source for game discoveries. Instead, players are increasingly finding new games through online content creators and social media, with influencer-led discovery accounting for 24% of new game awareness. In response, developers are establishing their own web stores to enhance profit margins and cultivate direct relationships with players. Notably, the percentage of top-grossing mobile games having their own online stores has increased significantly—12% in 2019 to 44% in 2024.

Expanding Beyond Gaming: The Importance of IP

Another key insight from Bain's report revolves around the expansion of game franchises beyond their original platforms. Gamers are dedicating a substantial portion of their media consumption to content related to their favorite game IP. Movie and television adaptations, for instance, can amplify game engagement by enhancing concurrent player rates by nearly 69% for popular adaptations.

Bain pinpoints several principles that successful IP owners adhere to: having respect for fan engagement, selectively expanding into new media, devising an immersive journey for players, together with investing in organizational structures that help maintain IP quality and community involvement.

Conclusion

The future of the gaming industry is brightly illuminated by the increasing influence of platform-style games and an ever-growing emphasis on UGC and direct player engagement. As studios navigate these changes, those willing to adapt and innovate will thrive, while those stuck in traditional paradigms may face obsolescence. Sharing insights from Bain & Company's report not only sheds light on current trends but also sets a roadmap for studios keen on aligning with the evolving desires of gamers.