BAINCOMPANYGaming Report 2025Breaking Boundaries to WinAcknowledgmentsThe leadership team of Bain Company's Global Gaming Sector practice prepared this report,withspecial direction from Anders Christofferson,partner and Global Gaming Sector lead,and BrandonRogers,Media practice manager.The authors would like to thank Danielle Schwenker,Luisa Zhu,Magnus Haug.and Tom Burton for theircontributions to this work.Thanks also to Danielle Erickson,Jeff Bauter Engel,and the editorial team fortheir assistance.This work is based on secondary market research,analysis of financial information available or provided to Bain Company and a range ofinterviews with industry participants.Bain Company has not independently verified any such information provided or available to Bainand makes no representation or warranty,express or implied,that such information is accurate or complete.Projected market and financialinformation,analyses and conclusions contained herein are based on the information described above and on Bain&Company's judgment,and should not be construed as definitive forecasts or guarantees of future performance or results.The information and analysis herein doesnot constitute advice of any kind,is not intended to be used for investment purposes,and neither Bain Company nor any of its subsidiariesor their respective officers,directors,shareholders,employees or agents accept any responsibility or liability with respect to the use ofor reliance on any information or analysis contained in this document.This work is copyright Bain Company and may not be published,transmitted,broadcast,copied,reproduced or reprinted in whole or in part without the explicit written permission of Bain Company.BAIN COMPANYGaming Report 2025ContentsBreaking Boundaries to WinGamer Survey:Great Gameplay Is No Longer Enough..Winning Beyond the Game................Squeezed in the Middle:AAA Gaming Studios Must Adapt.....Skipping the Storefront:Direct Distribution's Growth in Gaming...............23BAIN COMPANYGaming Report 2025Breaking Boundaries to WinThe video game market has rebounded after the consolidation following the pandemic boom,but growth is more concentrated than ever.Bain's annual Video Game Consumption Surveyfinds that young gamers(unsurprisingly)continue to fuel top games'success,especiallyplatform-style games.Their players most highly value social,creative elements and gameplay:graphics are secondary.That's been the case for a while for many gamers,but it's even morepronounced among younger players.AAA studios are adapting.but they're also getting squeezed by nimble indies capitalizing onevolving tastes and technology's democratization of game development and distribution.Studios of all sizes are selling more directly to consumers,reducing distribution fees anddeepening relationships with players.Stoking players'love is even more crucial as fans spendmore time with favorite franchises through cross-media extensions.Leading companies are breaking new ground by embracing a core truth:Success still dependson creating a great game,but now,that's just the start.Daniel HongAnders ChristoffersonLeader of Bain's Global MediaGlobal GamingSector LeadEntertainment PracticeAnders VidebaekTom RowlandGaming Sector Lead,Europe,Gaming Sector Lead,the Middle East,and AfricaAmericas2Gamer Survey:Great GameplayIs No Longer EnoughTop games are winning with community building,user-generated content,By Anders Christofferson,Anders Videbaek,Tom Rowland,and Matt MaddenAt a GlanceThe video game market grew 5%last year,to about $219 billion;Bain forecasts 4%annualgrowth through 2028.Growth is more concentrated than ever amongst top games,and one of the most compellingmodels is "games as a platform."These games defy traditional rules:Their players value social,creative elements as muchas gameplay and more than graphics.Both AAA and platform-style game developers are looking to brands for revenue,but players remain skeptical outside of mobile games.The video game industry is rebounding from post-pandemic consolidation.The market grew 5%last year,to around $219 billion in revenue,excluding hardware,advertising.and esports,according to Bainanalysis.We forecast about 4%annual growth through 2028,a normalization after the pandemic boom.tend to be those that were successful in prior years.This ossification has reached new levels:The top 10games on each platform now capture approximately 50%to 60%of total revenue for active titles on theirrespective platforms,according to Bain analysis.BAIN COMPANYGaming Report 2025There are multiple successful archetypes within these top games-including"games as a platform"(e.g.,Roblox,Fortnite,Minecraft);traditional AAA games (e.g.,annual Call of Duty releases,EA Sports FC);and top mobile titles (e.g.,Honor of Kings,Candy Crush).We unpacked the success of the top games in our 2025 gaming survey,which covered more than 5,000people across six countries(the US,Brazil,Indonesia,Japan,the UK,and the UAE).Our fourth annualgaming survey explored gamers'preferences,motivations,and spending habits,each with differentimplications for companies across the value chain.Here are the top takeaways.Young gamers continue to fuel the growth of top gamesYoung gamers are one of the biggest contributors to top games'success.Video games are the mostpopular form of media for those younger than 18 years old and represent a higher share of their totalmedia consumption than in any other age group.Their always-online presence and social tendenciestend to make successful titles contagious.The net effect is that young people's favorite games are more heavily clustered around a few top titlesthan in other age groups.Those aged between 2 and 17 are 20 percentage points more likely than gamersaged 35 and older to prefer playing the short list of games that are most popular among their peers(see Figure 1).Figure 1:The youngest gamers strongly prefer the games their peers are playingShare of gamers who listed at least one of their age group's top five titles as one of theirmost played titles71%53%51%2-1718-3435 and olderAge groupNotes:Gamer behavior within age groups is assessed across the full sample and includes an oversampling ofgamers;includes only gamers within a representative sample that was calculated by weighting the number ofrespondents per age group to balance proportions for each surveyed country (the US,Brazil,Indonesia,Japan,the UK,and the UAE)Source:Bain Video Game Consumption Survey,May 2025(n=3,783;total N=5,243)BAIN COMPANYGaming Report 2025Figure 2:Players who prefer games as a platform rank customization andplaying with their friends as highly as gameplay;graphics are secondaryPlayers listing Fortnite,Roblox,or Minecraft as favorite game Other gamersPercentage of respondents citing each reason for playing their most frequently playedgame58%46%46%47%45%30%32%28%Able to modify andPlayed by friendsLike the gameplayHigh-quality graphicspersonalize gameplayand audioNote:Includes only gamers who named a most played game and who were within a representative sample thatwas calculated by weighting the number of respondents per age group to balance proportions for each surveyedcountry (the US,Brazil,Indonesia,Japan,the UK,and the UAE)Source:Bain Video Game Consumption Survey,May 2025(n=1,251;total N=5,243)The younger generation's heavy gaming time boosts these top titles,potentially making their positionatop the charts more durable.There's compelling evidence that preferences for games carry forward:The percentage of Roblox users aged 13 and older increased from about 50%in 2021 to around 60%in2024,as a significant portion of younger users stuck with the game as they aged.If young gamers sustaintheir habits over the long term,new games may find it harder to break through.Games as a platform aren't playing by the same rules as traditionalAAA gamesThe traditional AAA franchise model-release sequels with better graphics,more playable content,anda few gameplay tweaks to keep things fresh-has worked year after year for successful franchises suchas Ultimate Team,Call of Duty,and Madden.But now,the most successful platform-style games,Roblox,Fortnite,and Minecraft,are upending these competitive dynamics.There are notable differences in the motivations of players who favor platform-style games comparedwith other gamers.For those who prefer platform-style games,the ability to modify and personalize theexperience and the fact that their friends also play it ranked as highly as the gameplay itself.Graphicswere a distant second (see Figure 2).BAIN COMPANYGaming Report 2025The final dynamic at play:Platform-style game developers don't solely rely on internal teams for newin-game content-users,indie developers,and even brand partners contribute.This has allowed thesegame developers to decouple themselves from the typical development cycle and free up resources toreinvest in their platforms while simultaneously delivering a key feature that their players demand.Recognizing these shifts,some developers and publishers have invested heavily in games'social andcreative elements.Yet at the same time,many continue to pour significant funds into areas that nolonger appear to move the needle for many gamers,such as higher-fidelity graphics.This has contributedto game budgets ballooning to hundreds of millions of dollars for the most expensive titles,even asconsumer spending has remained flat.For traditional AAA game developers,this puts a premiumon understanding their niches,conducting early gamer playtests,and carefully aligning budgetswith demand.The increase in user-generated content gives platform-style gamesan advantageAcross media,user-generated content(UGC)is capturing a growing share of engagement time fromprofessionally developed content.YouTube led all media companies in TV viewing time in May,thenumber of musical artists on Spotify earning more than $100,000 annually has roughly tripled since 2017.and Substack increased its paid subscriptions from 3 million in early 2024 to 5 million about a year later.In short,a proliferation of platform business models are rapidly taking share from incumbents acrossmedia industries.Across media,user-generated content(UGC)is capturinga growing share of engagement time from professionallydeveloped content.Gaming is no different.Once a niche community of players making fan art and game mods,UGC-focusedgames are now mainstream,and players are spending more time than ever creating.About 80%of gamersin our 2024 survey said they had played a game featuring player-made levels,modes,or items.In thisyear's survey,almost half of game content creators reported spending more time creating than they didlast year.That share was even higher among the youngest cohort,but even those aged 35 and olderreported a significant net increase(see Figure 3).BAIN COMPANYFigure 3:Gamers,especially younger ones,are spending more time creatingin-game contentQ:How does your time spent on creating in-game content or mods compare with ayear ago?■Significantly increased■Somewhat increased■Stayed the same■Somewhat decreasedSignificantly decreasedPercentage of respondents12%13%11%19%15%39%39%44%36%43%32%42%32%35%31%28%30%25%27%14%16%12%13%16%16%Overall2-1213-1718-2425-3435-4445 and olderAge groupNotes:Includes only gamers within a representative sample who indicated that they created user-generatedcontent or mods;representative sample calculated by weighting the number of respondents per age groupto balance proportions for each surveyed country (the US,Brazil,Indonesia,Japan,the UK,and the UAE)Source:Bain Video Game Consumption Survey,May 2025(n-2,739;total survey N=5,243)Very similar to other industries,this increase in UGC is benefiting platform-style games at the expenseof incumbents.Whereas AAA developers must manage large budgets,employee training.and stricttimelines,games-as-a-platform developers instead can focus on R&D for the tools and platform itself(such as Epic Games advancing its real-time 3D graphics development software,Unreal Engine)whilebenefiting from UGC's social amplification effects on their platforms.At scale,the collective creationefforts of the community can surpass the size of AAA game budgets:In 2024,Roblox paid nearly$1 billion to its player creators while Fortnite paid more than $350 million.Many developers are exploring ways to compete more effectively.Nintendo has embraced course-sharingin its Super Mario Maker series,and Sony's Dreams showcased console-native UGC pipelines.The success stories make it clear that UGC can't be an afterthought or a gimmick.Developers mustchoose early in the development cycle whether to embrace UGC as a core part of the game mechanicsand business model.BAIN COMPANYGaming Report 2025Companies are searching for new monetization models,but playersremain hesitantGamers play more but pay less-a persistent contradiction in gaming economics challenging the industry.Game sticker prices have stayed static around $60 to $70 per title for two decades,even as developmentbudgets have soared.Today's $70 marquee release costs gamers roughly 30%to 40%less in real termsthan a mid-1990s cartridge.At the same time,many games have become free to play,with hundreds ofhours of content available at no cost,funded by a smaller core of users more willing to pay for content.To offset capped sticker pricing,publishers added small in-game purchases to unlock features or content.However,leaning on this lever too hard risks backlash from players.Publishers exploring subscriptionrevenue models have yet to prove that large titles can make that transition successfully.Many industryexecutives are waiting with bated breath for the next Grand Theft Auto release to see if it will push thesticker price cap higher,benefiting the broader industry.Meanwhile,mobile gaming has successfullyleveraged advertising,but ads have yet to take hold on other gaming platforms.Gamers'feelings toward ads are paradoxical:They dislike the friction,but targeted ads are converting intopurchases at higher rates than ever.In our 2025 survey.64%of players reported that ads interrupt their gamingexperience,up 5 percentage points from last year.Yet in the same breath,46%say that they often makein-game purchases triggered by those ads,a 6-percentage-point increase year over year(see Figure 4).Figure 4:Despite growing friction,in-game advertising increasingly resultsin purchases■Agree■Neither agree nor disagree■DisagreePercentage of gamersI often make in-game purchases based onAds interrupt my gaming experiencein-game ads18%15%34%31%23%21%27%23%59%64%40%46%2024202520242025Note:Includes only gamers older than 13 within a representative sample that was calculated by weighting thenumber of respondents per age group to balance proportions for each surveyed country (the US,Brazil,Indonesia,Japan,the UK,and the UAE)Sources:Bain Video Game Consumption Survey,May 2025(n=1,008:total N=5,243):Bain Video GameConsumption Survey,May 2024 (total N-5,192)BAIN COMPANYGaming Report 2025Non-mobile games are forging ahead,led by the games as a platform.Roblox moved from bespoke brandactivations to a full programmatic video-ad marketplace in 2024,partnering with PubMatic to giveadvertisers self-serve access to its more than 97 million daily users.A Google partnership announcedthis year introduced rewarded-video formats that give Roblox players in-game benefits in exchange forwatching 30-second ads.Brands ranging from iHeartMedia to 7-Eleven are also getting in the game,creating branded playable experiences within platform-style games.The critical question for companies remains how to balance potential brand revenue with the qualityof the player experience.Implications for gaming executivesTop executives know the game has changed-traditional success factors alone won't cut it.Today's usersdon't just want to play;they want a hand in shaping the experience.The developers and publishers whoempower user creativity,build real communities,and evolve monetization to meet rising expectationswill lead the industry into its next era.Winning Beyond the GameFor companies with a hit video game,building a long-term strategy to extend IP beyondgameplay is the next frontier of competitive advantage.By Tom Rowland,Maureen Sullivan,and Anders ChristoffersonAt a GlanceExtensions into other media aren't just marketing vehicles for games anymore;they're integralto players'gaming experiences.Gamers spend around a quarter of other media time engaging with game-related intellectualproperty,a Bain survey found.High-quality adaptations boost engagement;the most critically acclaimed shows and filmslifted games'average concurrent users by 69%.Winning companies embrace the fans,build a comprehensive roadmap that expandsselectively,and invest in the right operating model.Success in video games will always begin and end with having a great game that players love.But as theindustry grows more competitive,media formats blur,and gaming's cultural reach expands,some of thebiggest opportunities for growth can be found outside the game.Film and TV adaptations,thriving onlinecommunities,live experiences-these aren't just marketing vehicles for a game anymore;they're integralto players'experiences of their favorite games.For companies that already have a hit game,the question isn't whether to expand beyond it.It's howto craft a long-term strategy that unlocks the full value of their successful intellectual property (IP).10BAIN COMPANYGaming Report 2025The new battleground:attentionThe fight for consumer time and dollars across experiences continues to intensify.The number of newPC games released annually has more than doubled over the past five years to almost 19,000 in 2024,while the number of YouTube videos has almost quadrupled during that period to about 15 billion lastyear.With an overwhelming volume of new content-across games,streaming,user-generated content,and more-cutting through the noise is harder than ever.Developing a hit game is already a steep climb.That's why publishers increasingly look to extendand evolve their flagship franchises,not just through sequels but across platforms simultaneously.The old model-launch a game,then maybe a spin-off or a show-is no longer enough to achieve theIP's full potential.Today's breakout franchises launch stories across multiple media at once.Companieslike Riot Games,with the latest Arcane series,are showing what's possible:TV shows,refreshed in-gamecontent,music videos,merch drops,and updates in partner games,all orchestrated to deepen fanengagement and drive growth.It's working.On average,around a quarter of gamers'time spent consuming other media is focused onengaging with game-related IP,according to a Bain Company survey conducted this year(see Figure 1).Furthermore,they spend a meaningful part of their time in the gaming environment on activities otherthan gameplay,such as socializing and developing their own content or character modifications.Figure 1:Around a quarter of gamers'other media consumption is spentengaging with gaming-related content■Gaming-related content■Non-gamingShare of gamers'average weekly hours spent on other mediaTotal22%78%Social27%73%Streaming video25%75%Linear TV22%78%Audio14%86%Reading11%89%Notes:Respondents were asked what percentage of their time spent on an entertainment activity was related togaming:includes only gamers within a representative sample that was calculated by weighting the number ofrespondents per age group to balance proportions for each surveyed country (the US,Brazil,Indonesia,Japan,theUK,and the UA目Source:Bain Video Game Consumption Survey,May 2025 (representative sample n=1,278;total N=5,243)11BAIN COMPANYGaming Report 2025Figure 2:Players often choose games because they fall in love with thecharacters,stories,and universesPercentage of players selecting each factor as a top five reason for deciding which videogames to playGameplay49%High-quality graphics and/or audio41%Personalized gameplay experience32%Attractive characters32%Attractive price32%Played by friends31%Regular content updates31%Compelling storyline31%Immersive world or universe31%Multi-device capabilities28%Average of other reasons20%Notes:Respondents were asked to rank options in order from one to five,with one being the most important;includes only gamers within a representative sample that was calculated by weighting the number of respondentsper age group to balance proportions for each surveyed country (the US,Brazil,Indonesia,Japan,the UK,andthe UAE)Source:Bain Video Game Consumption Survey,May 2025(representative sample n=1,278;total N=5,243)Increasingly,gamers and fans are falling in love with universes,stories,and characters rather than theentertainment format itself.In our survey,enjoying the gameplay is,of course,gamers'top reason forchoosing to play a particular game.But more than 30%of respondents said that having characters theylike,an immersive world or universe,and a compelling storyline were among the top five reasons whythey selected a particular game (see Figure 2).Increasingly,gamers and fans are falling in love withuniverses,stories,and characters rather than theentertainment format itself.12BAIN COMPANYGaming Report 2025Figure 3:On average,adaptations with more critical acclaim deliver a biggerboost to games'user numbersAverage percentage increase in games'average concurrent users(ACU)six months afteradaptation's release69%34%7%Poor(0-60%)G00d(61%-90%)Exceptional (91%-100%)Rotten Tomatoes critic ratingNote:Average increase in ACU calculated as the difference between ACU in the three months before release andACU in the six months afterSources:Rotten Tomatoes;Steam Charts;Bain analysis(n=13 games)This shift is also reshaping media more broadly.Game mechanics are bleeding into other storytellinggenres,and the language of other media has been"gamified,"which is resonating heavily with youngergenerations.Think literary role-playing games (LitRPGs),isekai manga,or anime such as Solo Leveling.The result is cross-format success that fuels the game and vice versa.Over the six months followingthe release of an adapted movie or TV series,the number of average concurrent users(ACU)of theoriginal game increases by 45%on average.But quality matters:TV and film adaptations with morecritical acclaim saw significantly larger increases in ACU.Adaptations with Rotten Tomatoes criticscores of 91%or higher saw a 69%increase in ACU on average over the six months following theadaptation's release.Meanwhile,those with a score between 61%and 90%saw ACU increase by 34%on average,and those with a score below 61%only increased ACU by 7%on average (see Figure 3).This can be particularly powerful for franchises with a long run of games.Fallout's successful 2024 TVseries reignited interest across all 10-plus games in the franchise,some of which received timely updatesto capitalize on the buzz.That kind of flywheel-IP sparking engagement,which in turn catalyzes gameinterest-helps franchises endure.13