According to Konvoy’s analysis, the global gaming market is projected to reach $186 billion by 2026, representing a 4.7% year-over-year increase.
The United States and China continue to represent key markets in the global gaming industry, though their contributions vary significantly in terms of user base and revenue. In 2024, the US accounted for 6.4% of global gamers but generated 26% of global gaming revenue. Conversely, China represented 20.5% of global gamers and contributed an equivalent 26% share of revenue.
The average gamer in the US spends approximately 3.1 times more annually than the average gamer in China. Additionally, US-based gaming startups receive 7.6 times more venture capital funding than their counterparts in China, and there are five times more VC-funded gaming startups in the US than in China, indicating a stronger ecosystem for early-stage companies in the American market.
Artificial intelligence continues to play an expanding role in game development. Microsoft recently introduced MUSE, a model intended to enhance the early stages of game design through faster iteration and learning. Although practical use cases for MUSE are still developing, the release signals Microsoft’s ongoing interest in AI-driven tools for the gaming sector.
Two notable handheld gaming devices are expected to launch in 2025: the Switch 2 and the Atari Gestation Go. The Switch 2 follows Nintendo’s successful original Switch, but Konvoy projects that its hardware sales may underperform by 25 to 40 percent relative to its predecessor. The Atari Gestation Go is a retro-style device that appeals to a niche audience, similar to previous nostalgia-driven products like the Atari Flashback Portable. While this product is unlikely to significantly affect the broader console market, it reflects ongoing consumer interest in vintage gaming experiences.
Konvoy’s Q1 2025 report offers a detailed snapshot of the gaming industry’s current state. Despite ongoing geopolitical and economic challenges, the sector continues to evolve through strategic investments, technology integration, and shifts in global market dynamics.
