Global Gaming Strategy, Monetization, and Emerging Technology

As the global video game industry stabilizes in 2025, it has transitioned from an era of explosive, volume-based growth to one of calculated value extraction and retention.

With the market valued at approximately $188.8 billion and projecting steady growth toward $206 billion by 2028, the “Strategic Horizon 2030” report outlines a landscape defined by technological disruption, demographic shifts, and the critical need for niche differentiation.

Here is a summary of the key findings and strategic roadmap for studios navigating this new era.

The 2025 Market Landscape: Calcification and Consoles

The industry is witnessing a “calcification” of player habits. A massive portion of playtime is locked into a few “Forever Games” like Fortnite and Roblox, leaving new titles to fight for a rapidly shrinking slice of attention. Data suggests that on PC, only 8% of total playtime is dedicated to new releases.

While mobile gaming remains the revenue giant ($103 billion), its growth has slowed in mature markets. The immediate growth driver is the Console segment (+5.5% YoY), fueled by hardware refresh cycles—specifically the Nintendo Switch 2—and system-selling blockbusters like Grand Theft Auto VI.

Technological Disruption: The AI Co-Developer

Artificial Intelligence has moved beyond theoretical experimentation to become the backbone of production. Over 90% of developers now integrate AI into their workflows, utilizing it for everything from concept art to automated QA.[4]

The roadmap identifies Generative AI as the key to solving the “Blank Page Problem,” allowing studios to iterate visual styles in minutes.[5] More importantly, the industry is pivoting toward “Runtime AI,” where technologies like Inworld AI power neuro-symbolic NPCs that possess distinct memories and generate dynamic, unscripted dialogue.

Demographic Shifts: The “Silver” and “Cozy” Economies

Studios continuing to target the stereotypical young, male gamer are missing the largest growth sectors.

• The Silver Economy: The average gamer is now 36, and the 50+ demographic is the fastest-growing cohort. These players are motivated by cognitive health and stress relief rather than competitive mastery.
• The Cozy Revolution: The “Cozy Game” market has surged to nearly $1 billion. In a high-anxiety world, over 50% of players cite stress relief as a primary motivation, creating a “Blue Ocean” opportunity for titles that offer pastoral, low-stress experiences with deep systems.

Product Roadmap: Three Strategic Niches

To combat market saturation, the report proposes three distinct product pillars:

1. Therapeutic Gaming (“Silver Logic”): Games designed specifically for cognitive maintenance in older adults. By combining puzzle mechanics with AI-driven reminiscence therapy (using generative AI to restore old family photos), studios can tap into the digital health market.[7, 11]
2. AI-Enhanced Edutainment (“Living Language”): Disrupting the $17 billion game-based learning market by replacing static flashcards with open-world RPGs. Players learn languages by conversing with AI NPCs that adapt their vocabulary complexity in real-time.
3. Mixed Reality Tabletop (“Phygital Play”): Leveraging the “Kidult” trend and the $18 billion tabletop market. Using AR glasses to visualize combat effects on physical boards removes the barrier of complex math, bridging the gap between wargaming and digital play.

Operational & Regional Strategy

For studios seeking efficiency, the UK—specifically Scotland—is highlighted as a premier operational hub. The transition to the Video Games Expenditure Credit (VGEC) offers a net cash benefit of approximately 25.5%, while the removal of subcontracting caps provides greater flexibility for distributed teams.

Conclusion

The path forward for 2030 requires abandoning the “Red Ocean” of competitive shooters and live-service giants. Success lies in leveraging AI to reduce production costs while targeting underserved demographics with community-focused, high-value experiences. In a post-advertising world, building a “Discord-first” community and utilizing nano-influencers are no longer optional tactics but essential survival strategies.