United States Gaming Market Size

US Gaming Market Analysis

The United States Gaming Market size is estimated at USD 57.91 billion in 2024, and is expected to reach USD 90.79 billion by 2029, growing at a CAGR of 9.41% during the forecast period (2024-2029).

The increased adoption of video streaming apps on mobile devices and televisions to watch movies, TV shows, and live events on-demand, has driven the demand for the gaming industry in the country. Moreover, many consumers want to play the latest games without requiring a new PC or a console. This has aided the development of newer formats as well.

• According to a study by the ESA, last year, more than 227 million players in the United States region played video games. In total, 80% of the players are over 18 years old. Furthermore, 76% of American kids under 18 years are players. In addition, 74% of American households have at least one video game player. Also, during the pandemic, 71% of parents agree that video games have been a much-needed break for their children. Also, 66% of parents agree that video games made the transition to distance learning more accessible.
• Further, 57% of the players used smartphones, 46% consoles, and 42% personal computers for playing video games. Also, 29% spent 1 to 3 hours per week, 77% spent more than 3 hours a week, and 51% spent more than 7+ hours playing video games in the country last year.
• Some key vendors, like Microsoft, which generates the largest revenue share in the United States, are focusing on leveraging the growing video game consumption in the country by launching new products. In November 2020, Microsoft launched the Xbox Series X and the Xbox Series S with live and virtual global activations. The games developed for the new consoles showcase visuals at 120 FPS. The consoles are equipped with 12 teraflops of processing power with AMD Zen 2 and RDNA 2 architectures.
• In addition, some of the prominent foreign players are expanding their presence in the United States to leverage the growth in the gaming market. For instance, the Chinese gaming company, Tencent Holdings, launched a new studio in California last year. The company built the new studio to focus on publishing AAA titles. The company generates half of its gaming revenues from overseas.
• Some of the major US-based video game companies are focusing on mobile gaming to improve their positions in the market. Last February, Electronic Arts Inc. acquired the US-based developer of mobile games, Glu Mobile, for USD 2.1 billion. The acquisition doubled Electronic Arts' mobile business.
• Also, due to the enforced lockdown during the COVID-19 pandemic, people have been staying at home and turning toward gaming platforms to pass their time. These platforms have been attracting more than hundreds and thousands of new visitors in online traffic.
• Video gaming trends experienced a significant surge in players and revenue last year. Organizations such as Microsoft, Nintendo, Twitch, and Activision, have reached new heights in player investment. Further, last year, Microsoft reported that subscribers to Xbox Game Pass, a Netflix-like subscription service, topped 10 million. Among those subscribers, Microsoft reported a 130-percent increase in multiplayer engagement across March and April.