What is the Gaming Market?



The computer and video game industry, also known as interactive entertainment, provides games ranging from classics such as crossword puzzles and solitaire to high-definition stereoscopic games.


Players can find games on many hardware platforms including general purpose computers (e.g. laptops), arcade and casino machines, tablets, smartphones and dedicated platforms such as PlayStation and Xbox. Recent studies show that 36 percent of gamers are now playing on their smartphones, and it is estimated that 80 percent of spending on phone apps now is for games.


Popular interactive games range from sedate word games like Words with Friends to high-adrenaline, first-person shooters like the Call of Duty series. Games may invite players to interact with highly complex simulated worlds such as the one in Second Life or involve the simple slingshot action of Angry Birds.

How Big is the Gaming Market?

Research firm Newzoo estimates the international games market will rocket past the $100 Billion mark in the next three years to reach $102.9 Billion by 2017. This represents a compound annual growth rate (CAGR) of +8.1%, outstripping the previous year’s estimate due to the relentless growth of both Asian markets and mobile gaming. The market for smartphones and tablets will rise from $17.6bn (a total market share of 23% in 2013) to an impressive $35.4bn in 2017 – ultimately dominating one third of the global games market.

How is the Gaming Market Segmented?

The computer and video game market is typically divided into the following segments:


  • Home console hardware
  • Home console software
  • Handheld console hardware
  • Handheld console software
  • Offline computer software
  • Online computer software
  • Mobile software