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The US gaming market is set to grow from $52.93 billion in 2023 to $82.98 billion by 2028. This growth is driven by the launch of the next generation gaming hardware like Xbox Series X and Playstation 5, the increased adoption of innovative technologies like Artificial Intelligence and the release of newer gaming formats.
Here are top trends and forecasts shaping the future of the US video gaming market for players, developers and regulators.
US Gaming Market Trends shaping the industry in 2023
Here are the top 5 trends and forecasts shaping the future of the US gaming market.
- More regulatory changes
From online casino gaming to mobile in-app purchases, the US gaming industry is expected to experience significant regulatory changes in the next three years. For instance, gambling enthusiasts are hoping that Colorado online casinos will become legal by 2025. Additionally, the EU’s decision to put other app stores on popular platforms like Google and Apple in 2024 will open up lots of payment options, significantly influencing the mobile gaming market.
- Mobile gaming to dominate the industry
The US mobile gaming market reached a record $41.7 billion in 2022, surpassing both PC and console gaming in revenue. This trend is still growing in 2023, driven by the wave of digital innovation and technological advances like Artificial Intelligence, VR, AR, 5G, and cloud gaming.
In 2023, more game developers in the US will be using AR to develop mobile games that offer highly immersive and interactive experiences. That has made mobile games the most famous augmented reality category in app stores.
Besides AR, the increased accessibility of high-speed 5G internet and unlimited data plans will be a key factor in the success of mobile gaming in the country. That’s because most players are turning to cloud gaming and online casino gambling, with smartphones as their device of choice.
- Growing cloud gaming subscriptions
The rise of cloud gaming in the US market has changed how video games are developed and played. Gamers can now access the latest video games regardless of their location or hardware, provided they have stable internet.
Unlike video game consoles, cloud gaming subscriptions allow players to stream a wide range of games at a flat monthly price. These cloud gaming services leverage the power of global content delivery networks, hyper-scale cloud capabilities, and media streaming to deliver innovative platforms for immersive and interactive social entertainment.
With the steady growth of 5G networks in the US, cloud gaming subscriptions are set to keep growing in the next three years. Additionally, telecommunication companies are working to ensure their networks support the shifting requirements of gamers using streaming services.
For instance, the top three telecommunication operators in the US (T-Mobile, Verizon, and AT&T) have started working with cloud gaming companies like Microsoft’s Xbox Game Pass, Hatch, and PlayGiga. These operators hope to develop cloud gaming services that feature bundled deals with mobile data packages in the subscriptions.
- The consolidation era
As the American gaming industry reaches its maturity, there’s a noticeable consolidation trend that’s becoming prevalent. Large companies are busy acquiring emerging companies to optimize their operations and boost growth. This emerging trend has resulted in a huge power shift in the market, with industry titans like Take-Two, Microsoft, EA, Ubisoft, Tencent, Sony, and Embracer increasingly developing their acquisition strategies.
Besides amassing power, consolidation helps pull resources to the gaming market, while making it easy to share expertise and foster innovation. As revealed by the $7.5 billion acquisition of ZeniMax Media (Bethesda Softworks parent company) by Microsoft, Consolidation can also yield exciting new partnerships and innovative projects that push the boundaries of conventional gaming reality.
- Embracing the Power of AI
While politicians and business executives across the country are still debating on ways to mitigate the havoc that generative AI is set to unleash on the healthcare and finance markets, the revolution has already begun for the US gaming market.
Artificial intelligence has proven effective in the procedural generation of dynamic and immersive gaming content. That’s evident in modern video games like Minecraft, Elite Dangerous an No Man’s Sky.
Conclusion
Growing at 7.89% per annum, the US gaming market is expected to hit the $520 billion mark by 2027. This transformative growth is fostered by the rise of innovative technologies like artificial intelligence, 5G, augmented reality and cloud gaming. The change in consumer demands and shift in the regulatory landscape will also play a major role in the future of gaming in the US.
