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{{Short description|Economic sector involved with the development, marketing and sales of video games}}
{{Use mdy dates|date=September 2021}}
{{Lead too short|date=January 2018}}
{{Video game industry}}
The '''video game industry''' is the [[tertiary industry|tertiary]] and [[quaternary industry|quaternary]] sectors of the [[entertainment industry]] that specialize in the [[video game development|development]], [[marketing]], [[distribution (marketing)|distribution]], [[video game monetization|monetization]], and [[customer satisfaction research|consumer feedback]] of [[video game]]s. The [[industry (economics)|industry]] encompasses dozens of job disciplines and thousands of jobs worldwide.<ref>Zackariasson, P. and Wilson, T.L. eds. (2012). ''The Video Game Industry: Formation, Present State, and Future''. New York: Routledge.</ref>

The video game industry has grown from niche to mainstream.<ref>{{cite web|date=July 25, 2020|title=New ESA Report Shows Gaming Is No Longer A Niche Market|url=https://www.thegamer.com/esa-gaming-niche-popular-die-mad-gamers/|access-date=December 16, 2020|website=TheGamer|archive-date=January 12, 2021|archive-url=https://web.archive.org/web/20210112053311/https://www.thegamer.com/esa-gaming-niche-popular-die-mad-gamers/|url-status=live}}</ref> {{As of|July 2018}}, video games generated {{US$|134.9 billion}} annually in global sales.<ref>{{cite web |url=https://newzoo.com/key-numbers/ |title=Key Numbers |archive-url=https://web.archive.org/web/20190509014637/https://newzoo.com/key-numbers/ |archive-date=May 9, 2019 |work=newzoo.com |access-date=August 21, 2021}}</ref> In the US, the industry earned about {{US$|9.5 billion|long=no}} in 2007, {{US$|11.7 billion|long=no}} in 2008, and {{US$|25.1 billion}} {{as of | 2010 | alt = in}} 2010,<ref>{{cite web|title=ESA: Facts and figures about the gaming industry in 2010|url=https://www.techspot.com/news/44167-esa-facts-and-figures-about-the-gaming-industry-in-2010.html|access-date=December 16, 2020|website=TechSpot|date=June 9, 2011 |archive-date=June 12, 2021|archive-url=https://web.archive.org/web/20210612093331/https://www.techspot.com/news/44167-esa-facts-and-figures-about-the-gaming-industry-in-2010.html|url-status=live}}</ref> according to the [[Entertainment Software Association|ESA]] annual report. Research from Ampere Analysis indicated three points: the sector has consistently grown since at least 2015 and expanded 26% [[COVID-19 pandemic|from 2019 to 2021]], to a record {{US$|191 billion|long=no}}; the global games and services market is forecast to shrink 1.2% annually to {{US$|188 billion|long=no}} in 2022; the industry is not [[recession]]-proof.<ref>{{cite web |last=Browne |first=Ryan |title=Video game sales set to fall for first time in years as industry braces for recession |url=https://www.cnbc.com/2022/07/07/video-game-industry-not-recession-proof-sales-set-to-fall-in-2022.html |access-date=2022-08-09 |website=CNBC |date=July 7, 2022 |language=en |archive-date=August 9, 2022 |archive-url=https://web.archive.org/web/20220809183935/https://www.cnbc.com/2022/07/07/video-game-industry-not-recession-proof-sales-set-to-fall-in-2022.html |url-status=live }}</ref>

The industry has influenced the technological advancement of [[personal computer]]s through [[sound card]]s, [[graphics card]]s and [[3D graphic accelerator]]s, [[CPU]]s, and co-processors like [[PhysX]].{{Citation needed|date=March 2021}} Sound cards, for example, were originally developed for games and then improved for adoptation by the [[music industry]].{{Citation needed|date=March 2021}}

== Industry overview ==
=== Size ===
In 2017 in the United States, which represented about a third of the global video game market, the [[Entertainment Software Association]] estimated that there were over 2,300 development companies and over 525 publishing companies, including in hardware and software manufacturing, service providers, and distributors. These companies in total have nearly 66,000 direct employees. When including indirect employment, such as a developer using the services of a graphics design package from a different firm, the total number of employees involved in the video game industry rises above 220,000.<ref>{{cite report | url = https://www.theesa.com/wp-content/uploads/2019/03/2017-EIR-National-Report.pdf | title = "Video Games in the 21st Century" | first = Stephen E. | last = Siwek | date = 2017 | access-date = January 22, 2020 | publisher = [[Entertainment Software Association]] | archive-date = March 10, 2021 | archive-url = https://web.archive.org/web/20210310161129/https://www.theesa.com/wp-content/uploads/2019/03/2017-EIR-National-Report.pdf | url-status = dead }}</ref>

=== Value chain ===
Traditionally, the video game industry has had six connected layers in its [[value chain]] based on the retail distribution of games:
# [[Video game development|Game development]], representing programmers, [[video game designer|designers]], and [[Game art design|artists]], and their leadership, with support of [[middleware]] and other development tools.
# [[Video game publisher|Publishing]], which typically includes both the source of funding the development of a video game, as well as providing the marketing and advertising for a game.
# Distribution, whether through retail or digital channels. Distribution typically includes manufacturing and duplication of game media and packaging for retail games.
# Retailer, storefront where the game is sold.
# Consumers, the purchasers and players of video games
# Hardware platform manufacturers, which can own and place limitations for content on the platform they have made, charging license fees to developers or publishers.

As games have transitioned from the retail to more digital market, parts of this value chain have become redundant. For example, the distributor may be redundant as a function of either the publisher or the retailer, or even in some cases as the case of [[indie game]]s, the function of the developer themselves.<ref>{{cite journal | title = Digital Supply Chain Management in the Videogames Industry: A Systematic Literature Review | first1 = Stephen | last1 = Kelly | first2 = Vojtech | last2= Klézl | first3= John |last3=Israilidis | first4= Neil |last4= Malone | first5 = Stuart | last5= Butler | journal = The Computer Games Journal | doi = 10.1007/s40869-020-00118-0 | date = 2020 | volume = 10 | issue = 1–4 | pages = 19–40 | doi-access = free | url = https://research.edgehill.ac.uk/files/38868959/Kelly2021_Article_DigitalSupplyChainManagementIn.pdf }}</ref>

=== Roles ===
Ben Sawyer of Digitalmill observes that the development side of the industry is made up of six connected and distinctive layers:
# Capital and publishing layer: involved in paying for development of new games and seeking returns through licensing of the properties.
# Product and talent layer: includes [[Video game developer|developers]], [[video game designer|designers]] and [[Game art design|artists]], who may be working under individual contracts or as part of in-house development teams.
# Production and tools layer: generates content [[game tool|production tools]], game development [[Game Middleware|middleware]], [[Game engine|customizable game engines]], and production management tools.
# Distribution layer: or the "[[video game publisher|publishing]]" industry, involved in generating and marketing catalogs of games for retail and online distribution.
# Hardware (or Virtual Machine or Software Platform) layer: or the providers of the underlying platform, which may be console-based, accessed through online media, or accessed through mobile devices such as [[smartphones]]. This layer includes network infrastructure and non-hardware platforms such as virtual machines (such as Java or Flash), or software platforms such as browsers or Facebook.
# End-users layer: or the players of the games.<ref name="newmedia">
{{cite book
  | last1 = Flew
  | first1 = Terry
  | last2 = Humphreys
  | first2 = Sal
  | author-link1 = Terry Flew
  | title = New Media: an Introduction
  | publisher = [[Oxford University Press]]
  | year = 2005
  | isbn = 0-19-555149-4
  |chapter = Games: Technology, Industry, Culture
  | pages=101–114
 | edition = Second
 }}
</ref>

The game industry employs those experienced in other traditional businesses, but some have experience tailored to the game industry. Some of the disciplines specific to the game industry include: [[game programmer]], [[game designer]], [[level designer]], [[game producer]], [[game artist]], and [[game tester]]. Most of these professionals are employed by [[video game developer]]s or [[video game publisher]]s. However, many [[hobby]]ists also produce computer games and sell them commercially.{{Citation needed|date=March 2009}} Game developers and publishers sometimes employ those with extensive or long-term experience within the [[Mod (video gaming)|modding]] communities.<ref>{{cite journal |title=Computer game mods, modders, modding and the mod scene |last=Scacchi |first=Walt |journal=First Monday |publisher=University of Chicago |volume=15 |number=5 |date=2010|doi=10.5210/fm.v15i5.2965 |doi-access=free }}</ref>

== History ==
{{Cleanup rewrite|Section should focus on the history of segments of the industry (developers, publishers, etc.) and major events, which may be tied to hardware and software, but this should be less about reiterating the hardware and generations.|section|date=March 2021}}
{{Further|History of video games|History of arcade video games|History of video game consoles}}

=== 1940s–1960s ===
{{Further|Early history of video games|Early mainframe games}}
Prior to the 1970s, there was no significant commercial aspect of the video game industry, but many advances in computing would set the stage for the birth of the industry.

Many early publicly available interactive computer-based game machines used or other mechanisms to mimic a display; while technically not "video games", they had elements of interactivity between the player and the machine. Some examples of these included the 1940 "Nimatron", an electromagnetic relay-based [[Nim]]-playing device designed by [[Edward Condon]] and built by [[Westinghouse Electric (1886)|Westinghouse Electric]] for the [[1939 New York World's Fair|New York World's Fair]],<ref name="Priest">{{cite web|url=https://videogamehistorian.wordpress.com/2014/01/22/the-priesthood-at-play-computer-games-in-the-1950s/|title=The Priesthood At Play: Computer Games in the 1950s |work=They Create Worlds|last=Smith|first=Alexander|date=January 22, 2014|access-date=December 18, 2015|archive-url=https://web.archive.org/web/20151222172058/https://videogamehistorian.wordpress.com/2014/01/22/the-priesthood-at-play-computer-games-in-the-1950s/|archive-date=December 22, 2015|url-status=live}}</ref> ''[[Bertie the Brain]]'', an arcade game of [[tic-tac-toe]], built by [[Josef Kates]] for the 1950 [[Canadian National Exhibition]],<ref name="CNE">{{cite news|first=Marlene|last=Simmons|title=Bertie the Brain programmer heads science council|url=https://news.google.com/newspapers?id=rKYyAAAAIBAJ&pg=916,3790974&dq=josef-kates&hl=en|newspaper=[[Ottawa Citizen]]|date=October 9, 1975|page=17|access-date=December 18, 2015|archive-date=March 8, 2021|archive-url=https://web.archive.org/web/20210308221409/https://news.google.com/newspapers?id=rKYyAAAAIBAJ&pg=916,3790974&dq=josef-kates&hl=en|url-status=live}}</ref> and [[Nimrod (computer)|Nimrod]] created by engineering firm [[Ferranti]] for the 1951 [[Festival of Britain]].<ref>{{cite book|title=Replay: The History of Video Games|last=Donovan|first=Tristan|title-link=Replay: The History of Video Games|publisher=Yellow Ant|date=April 20, 2010|isbn=978-0-9565072-0-4|pages=1–9}}</ref>

The development of [[cathode-ray tube]], the core technology inside televisions, created several of the first true video games. In 1947, Thomas T. Goldsmith Jr. and Estle Ray Mann filed a patent for a "cathode ray tube amusement device". Their game, which uses a cathode-ray tube hooked to an oscilloscope display, challenges players to fire a gun at target.<ref>{{cite web |url=http://www.museumofplay.org/about/icheg/video-game-history/timeline |title=Video Game History Timeline &#124; The Strong |publisher=Museumofplay.org |access-date=June 5, 2018 |archive-date=September 6, 2021 |archive-url=https://web.archive.org/web/20210906173502/https://www.museumofplay.org/about/icheg/video-game-history/timeline |url-status=live }}</ref>

Between the 1950s and 1960s, with mainframe computers becoming available to campus colleges, students and others started to develop games that could be played at terminals that accessed the mainframe. One of the first known examples is ''[[Spacewar!]]'', developed by Harvard and MIT employees Martin Graetz, [[Steve Russell (computer scientist)|Steve Russell]], and Wayne Wiitanen.<ref name="Space">{{cite web|url=https://videogamehistorian.wordpress.com/2014/08/07/one-two-three-four-i-declare-a-space-war/|title=One, Two, Three, Four I Declare a Space War|work=They Create Worlds|last=Smith|first=Alexander|date=August 7, 2014|access-date=December 18, 2015|archive-url=https://web.archive.org/web/20151222172136/https://videogamehistorian.wordpress.com/2014/08/07/one-two-three-four-i-declare-a-space-war/|archive-date=December 22, 2015|url-status=live}}</ref> The introduction of easy-to-program languages like [[BASIC]] for mainframes allowed for more simplistic games to be developed.

The [[arcade video game]] industry grew out of the pre-existing [[arcade game]] industry, which was previously dominated by [[electro-mechanical game]]s (EM games). Following the arrival of [[Sega]]'s EM game ''[[Periscope (arcade game)|Periscope]]'' (1966), the arcade industry was experiencing a "technological renaissance" driven by "audio-visual" EM novelty games, establishing the arcades as a healthy environment for the introduction of commercial video games in the early 1970s.<ref name="Smith">{{cite book |last1=Smith |first1=Alexander |title=They Create Worlds: The Story of the People and Companies That Shaped the Video Game Industry, Vol. I: 1971-1982 |date=November 19, 2019 |publisher=[[CRC Press]] |isbn=978-0-429-75261-2 |pages=119–20, 188–91 |url=https://books.google.com/books?id=Cxy_DwAAQBAJ&pg=PT119 |access-date=May 21, 2021 |archive-date=January 17, 2023 |archive-url=https://web.archive.org/web/20230117222408/https://books.google.com/books?id=Cxy_DwAAQBAJ&pg=PT119 |url-status=live }}</ref> In the late 1960s, a college student named [[Nolan Bushnell]] had a part-time job at an arcade where he became familiar with EM games such as [[Chicago Coin]]'s [[racing game]] ''Speedway'' (1969), watching customers play and helping to maintain the machinery, while learning how it worked and developing his understanding of how the game business operates.<ref name="NGen23">{{cite magazine |title=The Great Videogame Swindle? |magazine=[[Next Generation (magazine)|Next Generation]] |issue=23 |publisher=[[Imagine Media]] |date=November 1996 |pages=211–229 |url=https://archive.org/details/NextGeneration23Nov1996P2/page/n72}}</ref>

=== 1970s ===
[[File:Magnavox-Odyssey-Console-Set.jpg|thumb|right|The [[Magnavox Odyssey]] was released in 1972 as the first home video game console.]]
{{See also|First generation of video game consoles|Video game crash of 1977|Golden age of video arcade games|Second generation of video game consoles}}
In 1971, the first commercial [[arcade video game]], ''[[Computer Space]]'', was released.<ref name="cleverism.com">{{cite web|url=http://www.cleverism.com/gaming-industry-introduction/|title=The Gaming Industry – An Introduction|work=Cleverism|date=April 17, 2015|access-date=December 27, 2015|archive-date=January 5, 2016|archive-url=https://web.archive.org/web/20160105113752/http://www.cleverism.com/gaming-industry-introduction/|url-status=live}}</ref> The following year, [[Atari, Inc.]] released the first commercially successful video game, ''[[Pong]]'', and 19,000 [[arcade cabinet]]s of the original arcade version were sold.<ref>{{Cite book|title=Computer and Video Game Law: Cases and Materials|author=Ashley S. Lipson & Robert D. Brain|publisher=Carolina Academic Press|year=2009|isbn=978-1-59460-488-1|url=https://books.google.com/books?id=IxNDAQAAIAAJ|access-date=April 11, 2011|page=9|quote=Atari eventually sold more than 19,000 Pong machines, giving rise to many imitations. Pong made its first appearance in 1972 at "Andy Capp's," a small bar in Sunnyvale, California, where the video game was literally "overplayed" as eager customers tried to cram quarters into an already heavily overloaded coin slot.|archive-date=January 17, 2023|archive-url=https://web.archive.org/web/20230117222935/https://books.google.com/books?id=IxNDAQAAIAAJ|url-status=live}}</ref> In that year, video games were introduced to the home market with the release of the early [[video game console]], the [[Magnavox Odyssey]]. However, both the arcade and home markets would be dominated by ''Pong'' clones, which flooded the market and led to the [[video game crash of 1977]]. The crash eventually came to an end with the success of [[Taito]]'s ''[[Space Invaders]]'', released in 1978, inspiring the [[golden age of video arcade games]].<ref name="Whittaker-122">{{Cite book|title=The cyberspace handbook|author=Jason Whittaker|publisher=[[Routledge]]|year=2004|isbn=0-415-16835-X|page=122}}</ref> The game's success prompted the prevalence of arcade machines in mainstream locations such as [[shopping mall]]s, traditional storefronts, [[restaurant]]s, and [[convenience store]]s during the golden age.<ref>{{cite magazine|url=http://www.next-gen.biz/features/30-defining-moments-gaming |title=The 30 Defining Moments in Gaming |publisher=[[Future plc]] |magazine=[[Edge (magazine)|Edge]] |author=Edge Staff |date=August 13, 2007 |access-date=September 18, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20111029232528/http://www.next-gen.biz/features/30-defining-moments-gaming |archive-date=October 29, 2011 }}</ref> More than 360,000 ''Space Invaders'' [[Video game arcade cabinet|arcade cabinets]] were sold worldwide,<ref>{{Cite journal|title=Asia Pacific Perspectives, Japan| journal=Asia-Pacific Perspectives, Japan | volume=1|author=Jiji Gaho Sha, inc.|year=2003|publisher=[[University of Virginia]]|url=https://books.google.com/books?id=CTRWAAAAYAAJ|access-date=April 9, 2011|page=57|quote=At that time, a game for use in entertainment arcades was considered a hit if it sold 1000 units; sales of Space Invaders topped 300,000 units in Japan and 60,000 units overseas.}}</ref> and by 1982, generated a revenue of {{US$|2 billion|long=no}} (equivalent to ${{formatprice|{{inflation|US|2000000000|1982|r=0}}}} in {{Inflation-year|USD}}) in [[Quarter (United States coin)|quarters]].<ref name="CBC-1982">{{cite news|title=Making millions, 25 cents at a time|work=[[The Fifth Estate (TV)|The Fifth Estate]]|publisher=[[Canadian Broadcasting Corporation]]|date=November 23, 1982|url=http://www.cbc.ca/archives/categories/arts-entertainment/media/the-arcade-age/making-millions-25-cents-at-a-time.html|access-date=June 6, 2012|archive-date=January 28, 2013|archive-url=https://web.archive.org/web/20130128185102/http://www.cbc.ca/archives/categories/arts-entertainment/media/the-arcade-age/making-millions-25-cents-at-a-time.html|url-status=live}}</ref><ref name="Executive">{{Cite magazine|title=Space Invaders vs. Star Wars|magazine=Executive|volume=24|publisher=Southam Business Publications|year=1982|url=https://books.google.com/books?id=-KwTAQAAMAAJ|access-date=April 30, 2011|page=9|quote=According to TEC, Atari's arcade game Space Invaders has taken in $2&nbsp;billion, with net receipts of $450 million.}}</ref>

''Space Invaders'' was soon licensed for the [[Atari 2600|Atari VCS]] (later known as Atari 2600), becoming the first "[[killer app]]" and quadrupling the console's sales.<ref name="RG-41">{{Cite magazine| date= September 2007| title= The Definitive Space Invaders| magazine= [[Retro Gamer]]| publisher= [[Imagine Publishing]]| issue= 41| pages= 24–33| url= http://www.nowgamer.com/features/152/the-definitive-space-invaders-part-1| access-date= April 20, 2011| df= mdy-all}}</ref> The success of the Atari 2600 in turn revived the home video game market during the second generation of consoles, until the [[video game crash of 1983]].<ref>{{Cite book|title=The cyberspace handbook|first=Jason | last=Whittaker|publisher=[[Routledge]]|year=2004|isbn=0-415-16835-X|pages=122–3}}</ref> By the end of the 1970s, the [[personal computer game]] industry began forming from a hobby culture.

=== 1980s ===
[[File:NES-Console-Set.jpg|thumb|right|The [[Nintendo Entertainment System]], released in 1985, revived the American video game industry after the video game crash of 1983.]]
{{See also|Golden age of video arcade games|Second generation of video game consoles|Video game crash of 1983|Third generation of video game consoles|Fourth generation of video game consoles}}
In the early 1980s, the [[golden age of video arcade games]] reached its zenith. The total sales of [[arcade video game]] machines in North America increased significantly during this period, from $50 million in 1978 to $900 million by 1981,<ref name="Wolf-105">{{Cite book|title=The video game explosion: a history from PONG to Playstation and beyond|author=Mark J. P. Wolf|publisher=[[ABC-CLIO]]|isbn=978-0-313-33868-7|page=105|url=https://books.google.com/books?id=XiM0ntMybNwC&pg=PA105|access-date=April 19, 2011|year=2008}}</ref> with the arcade video game industry's revenue in North America tripling to $2.8 billion in 1980.<ref>{{Cite magazine|magazine=Electronic Education | title=Electronic Education |volume=2|issue=5–8|publisher=Electronic Communications|year=1983|url=https://books.google.com/books?id=nFBRAAAAYAAJ|access-date=April 23, 2011|page=41|quote=In 1980 alone, according to Time, $2.8 billion in quarters, triple the amount of the previous years, were fed into video games.}}</ref> By 1981, the arcade video game industry was generating an annual North American revenue of {{US$|5 billion|long=no}}<ref name="Whittaker-122"/><ref>{{Cite book|title=The video game explosion: a history from PONG to Playstation and beyond|author=Mark J. P. Wolf|publisher=[[ABC-CLIO]]|isbn=978-0-313-33868-7|page=103|url=https://books.google.com/books?id=XiM0ntMybNwC&pg=PA103|access-date=April 19, 2011|year=2008}}</ref> (equivalent to ${{formatprice|{{inflation|US|5000000000|1981|r=0}}}} in {{Inflation-year|USD}}). In 1982, the arcade video game industry reached its peak, generating $8 billion in quarters,<ref name="Rogers-Larsen-263">{{Cite book|title=Silicon Valley fever: growth of high-technology culture|author=Everett M. Rogers & Judith K. Larsen|publisher=[[Basic Books]]|year=1984|isbn=0-465-07821-4|url=https://archive.org/details/siliconvalleyfev00roge|url-access=registration|access-date=April 23, 2011|page=[https://archive.org/details/siliconvalleyfev00roge/page/263 263]|quote=Video game machines have an average weekly take of $109 per machine. The video arcade industry took in $8 billion in quarters in 1982, surpassing pop music (at $4 billion in sales per year) and Hollywood films ($3 billion, $10 billion if cassette sales and rentals are included). Those 32 billion arcade games played translate to 143 games for every man, woman, and child in America. A recent Atari survey showed that 86 percent of the US population from 13 to 20 has played some kind of video game and an estimated 8 million US homes have video games hooked up to the television set. Sales of home video games were $3.8 billion in 1982, approximately half that of video game arcades.}}</ref> surpassing the annual gross revenue of both [[pop music]] ($4 billion) and [[Cinema of the United States|Hollywood]] films ($3 billion) combined.<ref name="Rogers-Larsen-263"/> This was also nearly twice as much as the $3.8 billion generated by the home video game industry that year; both the arcade and home video game markets combined in 1982 total of {{US$|11.8 billion|long=no}}<ref name="Rogers-Larsen-263"/> (equivalent to ${{formatprice|{{inflation|US|11800000000|1982|r=0}}}} in {{Inflation-year|USD}}). The arcade video game industry would continue to generate an annual revenue of $5 billion in quarters through to 1985.<ref>{{Cite book|title=Keeping in touch|author=[[Ellen Goodman]]|publisher=[[Summit Books]]|year=1985|isbn=0-671-55376-3|url=https://archive.org/details/keepingintouch00good|url-access=registration|access-date=April 23, 2011|page=[https://archive.org/details/keepingintouch00good/page/38 38]|quote=There are 95,000 others like him spread across the country, getting fed a fat share of the $5 billion in videogame quarters every year.}}</ref> The most successful game of this era was [[Namco]]'s ''[[Pac-Man]]'', released in 1980, of which more than 350,000 cabinets were eventually sold,<ref>{{cite web | url = http://classicgaming.gamespy.com/View.php?view=GameMuseum.Detail&id=261 | title = Game of the Week: ''Pac-Man'' | author = Kevin "Fragmaster" Bowen | publisher = [[GameSpy]] | year = 2001 | access-date = April 9, 2011 | quote = Released in 1980, Pac-Man was an immediate success. It sold over 350,000 units, and probably {{sic|hide=y|woul|d of| expected=would have}} sold more if not for the numerous illegal pirate and bootleg machines that were also sold. | archive-date = October 1, 2011 | archive-url = https://web.archive.org/web/20111001232751/http://classicgaming.gamespy.com/View.php?view=GameMuseum.Detail&id=261 | url-status = live }}</ref> and within a year, collected more than $1 billion in quarters;<ref name="Wolf-73">{{Cite book|title=The video game explosion: a history from PONG to Playstation and beyond|author=Mark J. P. Wolf|publisher=[[ABC-CLIO]]|year=2008|isbn=978-0-313-33868-7|chapter=Video Game Stars: Pac-Man|page=73|chapter-url=https://books.google.com/books?id=XiM0ntMybNwC&pg=PA73|access-date=April 10, 2011|quote=It would go on to become arguably the most famous video game of all time, with the arcade game alone taking in more than a billion dollars, and one study estimated that it had been played more than 10 billion times during the twentieth century.}}</ref> in total, ''Pac-Man'' is estimated to have grossed over 10 billion quarters ($2.5 billion) during the 20th century.<ref name="Wolf-73"/><ref>{{cite news|title=Pac Man turns 25: A pizza dinner yields a cultural phenomenon - and millions of dollars in quarters|date=May 10, 2005|author=Chris Morris|publisher=CNN|url=https://money.cnn.com/2005/05/10/commentary/game_over/column_gaming/index.htm|access-date=April 23, 2011|quote=In the late 1990s, Twin Galaxies, which tracks video game world record scores, visited used game auctions and counted how many times the average Pac Man machine had been played. Based on those findings and the total number of machines that were manufactured, the organization said it believed the game had been played more than 10 billion times in the 20th century.|archive-date=May 15, 2011|archive-url=https://web.archive.org/web/20110515011836/http://money.cnn.com/2005/05/10/commentary/game_over/column_gaming/index.htm|url-status=live}}</ref>

In the early 1980s, [[8-bit]] home computing and [[Homebrew (video games)|home-made games]] boomed. This was especially in Europe (with the [[ZX Spectrum]] and [[Commodore 64]]) and in Asia (with the [[NEC PC-8801|NEC PC-88]] and [[MSX]]). [[Video game journalism]] arose at that time, which was later expanded to include [[covermount]]ed cassettes and CDs. In 1983, the [[North American video game crash of 1983|North American industry crashed]] due to the production of too many badly developed games (quantity over quality), resulting in the fall of the North American industry. The industry would eventually be revitalized by the release of the [[Nintendo Entertainment System]], which resulted in the home console market being dominated by Japanese companies such as [[Nintendo]],<ref name="newmedia" /> while a professional European video game industry also began taking shape with companies such as [[Ocean Software]] and [[Gremlin Interactive]].<ref>{{cite web|url=http://www.worldofspectrum.org/ystop100.html|title=World of Spectrum - Archive - YS Top 100|work=worldofspectrum.org|access-date=November 8, 2010|archive-date=October 30, 2015|archive-url=https://web.archive.org/web/20151030232331/http://www.worldofspectrum.org/ystop100.html|url-status=dead}}</ref> In 1987, Nintendo lost a legal challenge against [[Blockbuster Entertainment]], which continued game rentals in the same way as movies. In 1989, the [[Game Boy]] handheld system was launched.

Video games transitioned from having been showcased at general trade shows like [[Consumer Electronics Show]], to dedicated shows like [[Nintendo Space World]] and [[Electronic Entertainment Expo]].

=== 1990s ===
[[File:PlayStation-SCPH-1000-with-Controller.png|thumb|right|The [[PlayStation (console)|PlayStation]] was the most popular video game console of the fifth generation, with the mass adoption of CD media.]]
{{See also|Fourth generation of video game consoles|Fifth generation of video game consoles|Sixth generation of video game consoles}}

Game related technology advances of the 1990s include these:

* The "3D Revolution" where [[3D computer graphics|3D polygon graphics]] became the ''[[de facto]]'' standard for video game visual presentation, initially in the arcades during the early 1990s,<ref name="Williams">{{cite book |last1=Williams |first1=Andrew |title=History of Digital Games: Developments in Art, Design and Interaction |date=March 16, 2017 |publisher=[[CRC Press]] |isbn=978-1-317-50381-1 |pages=143–6, 152–4}}</ref> and then on home systems with 3D consoles and PC [[Graphics processing unit|graphics cards]] in the mid-1990s.
* The widespread adoption of [[compact disc|CD]]-based storage and software distribution
* Continuing advancement of [[CPU]] speed and sophistication
* Widespread adoption of [[graphical user interface|GUI]]-based [[operating system]]s, such as the series of [[Amiga OS]], [[Microsoft Windows]] and [[Mac OS]]
* Shrinking of hardware, with [[handheld game consoles]] and mobile phones, which enabled [[mobile gaming]]
* The emergence of the [[Internet]], which in the late 1990s enabled online cooperative play and [[competitive gaming]]

Aside from technology, in the early part of the decade, [[brand licensing|licensed]] games became more popular,<ref>{{cite web |last=Fahs |first=Travis |url=https://www.ign.com/articles/2008/08/08/ign-presents-the-history-of-madden |title=IGN Presents the History of Madden |website=IGN |date=August 8, 2008 |access-date=November 9, 2010 |archive-date=October 1, 2012 |archive-url=https://web.archive.org/web/20121001160200/http://www.ign.com/articles/2008/08/08/ign-presents-the-history-of-madden |url-status=live }}</ref><ref>{{cite web |last=Hurby |first=Patrick |url=http://www.espn.com/espn/eticket/story?page=100805/madden&redirected=true |title=The Franchise |website=ESPN |access-date=November 9, 2010 |archive-date=June 25, 2020 |archive-url=https://web.archive.org/web/20200625010134/http://www.espn.com/espn/eticket/story?page=100805/madden&redirected=true |url-status=live }}</ref> as did video game sequels.<ref>{{cite web |last=McLaughlin |first=Rus |url=https://www.ign.com/articles/2009/02/16/ign-presents-the-history-of-street-fighter |title=IGN Presents the History of Street Fighter |website=IGN |date=July 7, 2010 |access-date=November 9, 2010 |archive-date=November 9, 2020 |archive-url=https://web.archive.org/web/20201109042402/http://www.ign.com/articles/2009/02/16/ign-presents-the-history-of-street-fighter |url-status=live }}</ref>

The arcades experienced a renaissance in the early 1990s following the release of ''[[Street Fighter II]]'' (1991), which led to a number of other popular fighting games such as ''[[Fatal Fury]]'' (1991) and ''[[Mortal Kombat]]'' (1992).<ref>{{cite book |title=Gamers: writers, artists & programmers on the pleasures of pixels| first=Shanna | last=Compton|publisher=[[Soft Skull Press]]|year=2004|isbn=1-932360-57-3|page=119|url=https://books.google.com/books?id=-sCO-gODwy4C&pg=PA119}}</ref><ref>{{cite web |title=Insert Coin Here: Getting a Fighting Chance|first=Jay | last=Carter|magazine=[[Electronic Games]]|date=July 1993|issue=10|url=https://archive.org/stream/Electronic-Games-1993-07/Electronic%20Games%201993-07#page/n15/mode/2up}}</ref> The arcade resurgence was further driven by increasing realism,<ref name="GW">{{cite magazine |last1=Perry |first1=Dave |author1-link=Dave Perry |title=Arcades: Ready for a Renaissance? |magazine=[[Games World]] |date=November 1994 |issue=7 (January 1995) |publisher=[[Paragon Publishing]] |page=6 |url=https://archive.org/details/games-world-07/page/n5}}</ref> with the "3D Revolution" from [[2D graphics|2D]] and [[pseudo-3D]] graphics to true [[Real-time computer graphics|real-time]] [[3D computer graphics|3D polygon graphics]], following the release of games such as ''[[Virtua Racing]]'' (1992) and ''[[Virtua Fighter]]'' (1993).<ref name="Williams"/><ref name="tao2">{{cite web | last = Spencer | first =  Spanner | url = http://www.eurogamer.net/articles/a_taoofbeatemups_pt2_retro | title =  The Tao of Beat-'em-ups (part 2) | archive-url=https://web.archive.org/web/20110715094144/http://www.eurogamer.net/articles/a_taoofbeatemups_pt2_retro | archive-date=July 15, 2011 |  work = [[Eurogamer]]  | date = February 12, 2008 | access-date =  March 18, 2009}}</ref> In the late 1990s, there was a transition away from arcades to home systems. Until about 1996-1997, arcade video games represented the largest sector of the global video game industry, before arcades declined and the console market surpassed arcade video games for the first time around 1997-1998.<ref name="vgmarket"/> Arcade systems such as the [[Sega Model 3]] remained more technologically advanced than home systems in the late 1990s,<ref name="VF3">{{cite magazine|title=News: Virtua Fighter 3|magazine=[[Computer and Video Games]]|date=May 1996| issue=174|pages=10–1}}</ref><ref name="thg">{{cite web |url=http://www.thg.ru/smoke/19991022/print.html |title=Second Hand Smoke – One up, two down |publisher=[[Tom's Hardware Guide]] |date=October 22, 1999 |access-date=January 8, 2018 |archive-date=February 22, 2015 |archive-url=https://web.archive.org/web/20150222220103/http://www.thg.ru/smoke/19991022/print.html |url-status=live }}</ref> but the gap between arcade and home systems began narrowing in the late 1990s.

The video game industry generated worldwide sales of {{US$|19.8 billion|long=no}} in 1993<ref name="yearbook_123a">{{cite book|title=Statistical yearbook: cinema, television, video, and new media in Europe, Volume 1999|year=1996|publisher=Council of Europe|page=123|isbn=9789287129048|url=https://books.google.com/books?id=MfoHAQAAMAAJ&q=%22world+sales+estimated+at+usd%22}}</ref> (equivalent to ${{formatprice|{{inflation|US|19800000000|1993|r=0}}}} in {{Inflation-year|USD}}), {{US$|20.8 billion|long=no}} in 1994<ref name="yearbook_123a"/> (equivalent to ${{formatprice|{{inflation|US|20800000000|1994|r=0}}}} in {{Inflation-year|USD}}), and an estimated {{US$|30 billion|long=no}} in 1998<ref>{{cite book|title=Statistical yearbook: cinema, television, video, and new media in Europe, Volume 1999|year=1996|publisher=Council of Europe|page=123|isbn=9789287129048|url=https://books.google.com/books?id=MfoHAQAAMAAJ&q=%22should+reach+USD+30+billion+by+1998%22}}</ref> (equivalent to ${{formatprice|{{inflation|US|30000000000|1998|r=0}}}} in {{Inflation-year|USD}}). In the United States alone, in 1994, arcades generated {{US$|7 billion|long=no}}<ref name="business_1994">{{cite magazine|title=Business Week|magazine=[[Bloomberg Businessweek|Business Week]]|year=1994|issue=3392–3405|url=https://books.google.com/books?id=kAseAQAAMAAJ|access-date=January 25, 2012|page=58|publisher=[[Bloomberg L.P.|Bloomberg]]|quote=Hollywood's aim, of course, is to tap into the $7 billion that Americans pour into arcade games each year — and the $6 billion they spend on home versions for Nintendo and Sega game machines. Combined, it's a market nearly 2 ½ times the size of the $5 billion movie box office.}}</ref> in quarters while home console game sales generated {{US$|6 billion|long=no}}<ref name="business_1994"/> Combined, this was nearly two and a half times the {{US$|5 billion|long=no}} revenue generated by movies in the United States at the time.<ref name="business_1994"/>

=== 2000s ===
[[File:PS2-Fat-Console-Set.png|thumb|right|The sixth-generation [[PlayStation 2]] is the [[List of best-selling game consoles|best-selling console of all time]].]]
{{See also|Sixth generation of video game consoles|Seventh generation of video game consoles}}
In 2000s, the video game industry was in heavy development; profit still drove technological advancement used by other industry sectors. Technologies such as [[Smartphones]], [[virtual reality]], and [[augmented reality]] were major drivers for game hardware and gameplay development. Though maturing, the video game industry was still very volatile, with third-party video game developers quickly cropping up, and just as quickly, going out of business.{{Citation needed|date=March 2009}} Nevertheless, many [[casual game]]s and [[indie game]]s became successful, such as ''[[Braid (video game)|Braid]]'' and ''[[Limbo (video game)|Limbo]]''. Game development for mobile phones (such as [[iOS]] and [[Android (operating system)|Android]] devices) and social networking sites emerged. For example, a [[Facebook]] game developer, [[Zynga]], raised more than $300 million.{{Clarify|date=March 2011}}<ref>{{cite news |url=https://techcrunch.com/2009/12/15/zynga-takes-180-million-venture-round-cue-russian-mafia-jokes/ |title=Zynga Takes $180 Million Venture Round From DST, Others (Cue Russian Mafia Jokes) |work=TechCrunch |date=December 15, 2009 |access-date=February 11, 2014 |archive-date=February 13, 2013 |archive-url=https://web.archive.org/web/20130213175807/http://techcrunch.com/2009/12/15/zynga-takes-180-million-venture-round-cue-russian-mafia-jokes/ |url-status=live }}</ref>

=== 2010s ===
{{See also|Eighth generation of video game consoles}}
[[Indie game]]s are not the main driver but significantly impact the industry, such as ''[[Spelunky]]'', ''[[Fez (video game)|Fez]]'', ''[[Don't Starve]]'', ''[[Castle Crashers]]'', and ''[[Minecraft]]'', with millions of [[United States dollar|dollars]] and users.<ref name="entrepreneurial-insights.com">{{cite web|url=http://www.entrepreneurial-insights.com/gaming-industry-introduction/|title=The Gaming Industry – An Introduction|work=Entrepreneurial Insights|date=April 17, 2015|access-date=October 5, 2015|archive-date=October 6, 2015|archive-url=https://web.archive.org/web/20151006063156/http://www.entrepreneurial-insights.com/gaming-industry-introduction/|url-status=live}}</ref>{{unreliable source?|date=February 2017}} In the 2010s, the shift increased to casual and [[mobile gaming]], and in 2016, the mobile video game market was estimated at $38 billion in revenues, compared to $6 billion for the console market and $33 billion for personal computing gaming.<ref>{{cite web | url = http://www.gamesindustry.biz/articles/2016-10-24-welcome-to-the-new-era-games-as-media | title = Welcome to the New Era: Games as Media | first = Joost | last = van Dreunen | date = October 24, 2016 | access-date = October 31, 2016 | work = [[GamesIndustry.biz]] | archive-date = November 1, 2016 | archive-url = https://web.archive.org/web/20161101042028/http://www.gamesindustry.biz/articles/2016-10-24-welcome-to-the-new-era-games-as-media | url-status = live }}</ref> [[Virtual reality]] and [[augmented reality]] games arose during this decade. As of 2014, newer game companies arose that vertically integrate live operations and publishing such as crowdfunding and other direct-to-consumer efforts, rather than relying on a traditional publishers, and some of these grew substantially.<ref>{{cite web |url=https://medium.com/business-startup-development-and-more/50e5d9379521 |title=The Future of Games and How to Stop It |last1=Radoff |first1=Jon |date=February 10, 2014 |website=medium.com |access-date=February 11, 2014 |archive-date=February 22, 2014 |archive-url=https://web.archive.org/web/20140222052050/https://medium.com/business-startup-development-and-more/50e5d9379521 |url-status=live }}</ref> Spurred by some initial events in the late 2000s, [[eSports]] centered around professional players in organized competitions and leagues for prize money, grew greatly over this decade, drawing hundreds of millions of viewers and reaching nearly $500 million in revenue by 2016 and expected to break $1 billion by 2019.<ref>{{cite news | url = http://www.cnn.com/2016/05/29/sport/esports-revolution-revenue-audience-growth/index.html | title = ESports: Global revenue expected to smash $1 billion by 2019 | first = Don | last = Riddell | date = May 29, 2016 | access-date = January 16, 2018 | work = [[CNN]] | archive-date = January 22, 2018 | archive-url = https://web.archive.org/web/20180122075337/http://www.cnn.com/2016/05/29/sport/esports-revolution-revenue-audience-growth/index.html | url-status = live }}</ref>

=== 2020s ===
{{See also|Ninth generation of video game consoles|Impact of the COVID-19 pandemic on the video game industry}}
The next generations of [[Xbox Series X/S]] and [[PlayStation 5]] were planned for 2020, but the video game industry was affected by the [[COVID-19 pandemic]] that had a worldwide impact starting in March 2020 due to forced stay-at-home orders by governmental regulations. There were similar impacts to the video game industry as with other industries, such as cancellation of in-person trade shows, conventions and esports events, and the delay of many games into late 2020, 2021, or beyond, and the industry was one of the few to actually thrive from a home-bound population using video games to cope. The market had a 20% year-to-year growth from 2019, reaching over {{USD|179 billion|long=no}} in global revenue in both hardware and software for 2020.<ref>{{cite web | url = https://www.marketwatch.com/story/videogames-are-a-bigger-industry-than-sports-and-movies-combined-thanks-to-the-pandemic-11608654990 | title = Videogames are a bigger industry than movies and North American sports combined, thanks to the pandemic | first = Wallace | last = Witkowski | date = December 26, 2020 | access-date = December 27, 2020 | work = [[Market Watch]] | archive-date = July 16, 2022 | archive-url = https://web.archive.org/web/20220716071848/https://www.marketwatch.com/story/videogames-are-a-bigger-industry-than-sports-and-movies-combined-thanks-to-the-pandemic-11608654990 | url-status = live }}</ref> Easily learned games with high social interactions were popular, including ''[[Animal Crossing: New Horizons]]'',<ref>{{Cite journal|last=Zhu|first=Lin|title=The psychology behind video games during COVID-19 pandemic: A case study of Animal Crossing: New Horizons|journal=Human Behavior and Emerging Technologies|year=2021|volume=3|pages=157–159|language=en|issue= |doi=10.1002/hbe2.221|issn=2578-1863|doi-access=free}}</ref> ''[[Fall Guys]]'', and ''[[Among Us]]''.<ref name="improb">{{cite web|last=Grayson|first=Nathan|date=September 8, 2020|title=Among Us' Improbable Rise To The Top Of Twitch|url=https://www.kotaku.com.au/2020/09/among-us-improbable-rise-to-the-top-of-twitch/|url-status=live|archive-url=https://web.archive.org/web/20200909025025/https://www.kotaku.com.au/2020/09/among-us-improbable-rise-to-the-top-of-twitch/|archive-date=September 9, 2020|access-date=September 8, 2020|website=Kotaku Australia|language=en-AU}}</ref><ref>{{cite web|last=Grimm|first=Peter|date=September 7, 2020|title=Among Us Hits Impressive Concurrent Player Milestone|url=https://gamerant.com/among-us-concurrent-player-milestone/|url-status=live|archive-url=https://web.archive.org/web/20200909025047/https://gamerant.com/among-us-concurrent-player-milestone/|archive-date=September 9, 2020|access-date=September 8, 2020|website=Game Rant|language=en-US}}</ref><ref>{{cite web|last=Baird|first=Scott|date=September 7, 2020|title=Fall Guys Is Number One On Steam's Bestselling List For Fifth Week In A Row|url=https://www.thegamer.com/fall-guys-number-one-steam-sales/|url-status=live|archive-url=https://web.archive.org/web/20200909025047/https://www.thegamer.com/fall-guys-number-one-steam-sales/|archive-date=September 9, 2020|access-date=September 8, 2020|website=TheGamer|language=en-US}}</ref><ref>{{Cite magazine|last=Matthews|first=Emma|date=August 25, 2020|title=Why Among Us is the best game to watch on Twitch right now|url=https://www.pcgamer.com/why-among-us-is-the-best-game-to-watch-on-twitch-right-now/|url-status=live|archive-url=https://web.archive.org/web/20200909025025/https://www.pcgamer.com/why-among-us-is-the-best-game-to-watch-on-twitch-right-now/|archive-date=September 9, 2020|access-date=September 8, 2020|magazine=PC Gamer|language=en-US}}</ref>

As the pandemic wore on from 2020 into 2021, a secondary effect was the impact of the [[2020–21 global chip shortage|global semiconductor chip shortage]] on hardware manufacturing. The three major console vendors, Nintendo, Microsoft, and Sony, were impacted by availability of supply of core components, and for the latter two, limited the launch of their new consoles. The chip supply shortage also affected personal computer gamers, coupled with demand for computer parts to be used in [[cryptocurrency mining]], which artificially raised prices and made it difficult to purchase newer components.<ref>{{cite web | url = https://finance.yahoo.com/news/bitcoin-mining-adds-existing-shortage-120348278.html | title = Bitcoin Mining Adds to Existing Shortage in Semiconductor Market, Chip Prices Surge | first = Anatol | last = Antonovici | date = March 23, 2021 | accessdate = April 20, 2021 | work = [[Yahoo News]] | archive-date = April 20, 2021 | archive-url = https://web.archive.org/web/20210420170757/https://finance.yahoo.com/news/bitcoin-mining-adds-existing-shortage-120348278.html | url-status = live }}</ref> However, after cryptocurrency mining started paying out less during and following the [[Cryptocurrency bubble|2021–2022 cryptocurrency crash]], computer parts such as [[Graphics processing unit|GPUs]] have become more affordable as of August 2022.<ref>{{cite web |author1=Jarred Walton |date=2022-08-01 |title=Most GPUs Now Start Below MSRP: Graphics Card Prices, August 2022 |url=https://www.tomshardware.com/news/graphics-card-prices-august-2022 |access-date=2022-08-10 |website=Tom's Hardware |language=en |archive-date=August 10, 2022 |archive-url=https://web.archive.org/web/20220810125839/https://www.tomshardware.com/news/graphics-card-prices-august-2022 |url-status=live }}</ref>

== Economics ==
{{Image frame |caption=Global revenue estimates of the video game industry from 1971 to 2018, not adjusted for inflation, according to market research firm Pelham Smithers.<ref name="vgmarket">{{cite web | url = https://www.bloomberg.com/news/articles/2019-01-23/peak-video-game-top-analyst-sees-industry-slumping-in-2019 | title = Peak Video Game? Top Analyst Sees Industry Slumping in 2019 | first=  Yuki | last = Nakamura | date = January 23, 2019 | access-date = January 29, 2019 | work = [[Bloomberg L.P.]] | url-access = subscription | archive-url = https://web.archive.org/web/20190130053850/http://www.bloomberg.com/news/articles/2019-01-23/peak-video-game-top-analyst-sees-industry-slumping-in-2019 | archive-date = January 30, 2019 | url-status=live}}</ref> <br /> The chart shows the impacts of the [[Video game crash of 1977|1977 crash]], the [[golden age of arcade games]] (1978–1983), the [[video game crash of 1983]], the [[Third generation of video game consoles|console revival]] (late 1980s), and the rise of [[mobile gaming]] since 2008.|content={{Video game industry/Market}} | align=center }}{{clear}}
Early development costs were minimal, and video games could be quite profitable. Games developed by a single programmer, or by a small team of programmers and artists, could sell hundreds of thousands of copies each. Many of these games only took a few months to create, so developers could release multiple games per year. Thus, publishers could often be generous with benefits, such as [[royalties]] on the games sold. Many early game publishers started from this economic climate, such as [[Origin Systems]], [[Sierra Entertainment]], [[Capcom]], [[Activision]] and [[Electronic Arts]].

As computing and graphics power increased, so too did the size of development teams, as larger staffs were needed to address the ever-increasing technical and design complexities. The larger teams consist of programmers, artists, game designers, and producers. Their salaries can range anywhere from $50,000 to $120,000 generating large labor costs for firms producing video games<ref>{{cite web|url=http://www.bigfishgames.com/blog/video-gaming-industry-numbers-by-region/|title=Top Gaming Studios, Schools & Salaries|work=Big Fish Games|access-date=August 20, 2013|archive-date=July 19, 2013|archive-url=https://web.archive.org/web/20130719033906/http://www.bigfishgames.com/blog/video-gaming-industry-numbers-by-region/|url-status=dead}}</ref> which can often take between one and three years to develop. Modern budgets typically reach millions of dollars and use [[Game Middleware|middleware]] and pre-built [[game engine]]s. In addition to growing development costs, marketing budgets have grown dramatically, sometimes two to three times of the cost of development.<ref>{{cite web|last1=Superannuation|title=How Much Does It Cost To Make A Big Video Game?|url=http://kotaku.com/how-much-does-it-cost-to-make-a-big-video-game-1501413649|website=Kotaku|date=January 15, 2014|publisher=Gawker Media|access-date=October 30, 2014|archive-date=January 17, 2014|archive-url=https://web.archive.org/web/20140117033951/http://kotaku.com/how-much-does-it-cost-to-make-a-big-video-game-1501413649|url-status=live}}</ref>

Traditionally, the [[video game monetization]] method is to sell hard copies in retail store. Cheaper production and distribution methods include [[digital distribution|online distribution]].<ref>{{cite web|last1=Kain|first1=Erik|title=Why Digital Distribution Is The Future And GameStop Is Not: Taking The Long View On Used Games|url=https://www.forbes.com/sites/erikkain/2013/05/30/why-digital-distribution-is-the-future-and-gamestop-is-not-taking-the-long-view-on-used-games/|website=Forbes|access-date=October 30, 2014|archive-date=October 30, 2014|archive-url=https://web.archive.org/web/20141030144747/http://www.forbes.com/sites/erikkain/2013/05/30/why-digital-distribution-is-the-future-and-gamestop-is-not-taking-the-long-view-on-used-games/|url-status=live}}</ref>

In the 2010s, the video game industry had a major impact on the economy through the sales of major systems and games such as ''[[Call of Duty: Black Ops]]'', which had over $650 million of sales in the game's first five days and which set a five-day global record for a movie, book or video game.<ref>[http://blog.games.yahoo.com/blog/278-call-of-duty-black-ops-sets-record-for-activision "Call of Duty: Black Ops" sets record for Activision"] {{webarchive |url=https://web.archive.org/web/20110125022802/http://blog.games.yahoo.com/blog/278-call-of-duty-black-ops-sets-record-for-activision |date=January 25, 2011 }}. ''Yahoo Games Plugged In''. December 21, 2010. Retrieved on May 19, 2011.</ref> The game's income was more than the opening weekend of ''[[Spider-Man 3]]'' and the previous title holder for a video game ''[[Halo 3]]''.<ref>[http://kotaku.com/380205/variety-gtaiv-launch-bigger-than-halo-3-and-then-some "Variety: GTA IV Launch Bigger Than Halo 3 (And Then Some)"] {{Webarchive|url=https://web.archive.org/web/20090317000614/http://kotaku.com/380205/variety-gtaiv-launch-bigger-than-halo-3-and-then-some |date=March 17, 2009 }}, ''[[Kotaku]]'', April 15, 2008. Retrieved on April 15, 2008.</ref> Many individuals have also benefited from the economic success of video games including the former chairman of [[Nintendo]] and Japan's third richest man: [[Hiroshi Yamauchi]].<ref>{{cite news |url=https://www.forbes.com/2008/05/07/japan-wealth-technology-cz-km-japanrichest08_0507intro.html |title=Japan's Richest Man Is...Yes, Hiroshi Yamauchi |archive-url=https://web.archive.org/web/20090330163941/http://www.forbes.com/2008/05/07/japan-wealth-technology-cz-km-japanrichest08_0507intro.html |archive-date=March 30, 2009 |access-date=March 30, 2009 |work=Forbes |date=May 7, 2008 |url-status=dead  }}</ref> By 2014, the global video game market was valued at over $93 billion.<ref>{{cite web|last1=van der Meulen|first1=Rob|title=Gartner Says Worldwide Video Game Market to Total $93 Billion in 2013|url=http://www.gartner.com/newsroom/id/2614915|archive-url=https://web.archive.org/web/20131031180402/http://www.gartner.com/newsroom/id/2614915|url-status=dead|archive-date=October 31, 2013|publisher=Gartner|access-date=October 30, 2014}}</ref>

The industry wide adoption of high-definition graphics during the seventh generation of consoles greatly increased development teams' sizes and reduced the number of [[Triple A (gaming)|high-budget, high-quality games]] under development. In 2013 [[Richard Hilleman]] of Electronic Arts estimated that only 25 developers were working on such games for the eighth console generation, compared to 125 at the same point in the seventh generation-console cycle seven or eight years earlier.<ref>{{cite magazine | url=https://www.mcvuk.com/only-25-triple-a-console-studios-left-claims-ea/ |title =Only 25 triple-A console studios left, claims EA | date = July 5, 2013 | access-date = December 24, 2019 | magazine = [[MCV/Develop]] }}</ref>

By 2018, the United States video game industry had matched that of the United States film industry on basis of revenue, with both having made around {{USD|43 billion}} that year.<ref>{{cite web | url = https://venturebeat.com/2019/01/22/npd-u-s-game-sales-hit-a-record-43-4-billion-in-2018/ | title = NPD: U.S. game sales hit a record $43.4 billion in 2018 | first = Mike | last = Minoitti | date = January 22, 2019 | access-date = January 22, 2019 | work = [[Venture Beat]] | archive-date = January 2, 2020 | archive-url = https://web.archive.org/web/20200102174949/https://venturebeat.com/2019/01/22/npd-u-s-game-sales-hit-a-record-43-4-billion-in-2018/ | url-status = live }}</ref><ref>{{cite web | url = https://deadline.com/2018/07/film-industry-revenue-2017-ibisworld-report-gloomy-box-office-1202425692/ | title = U.S. Film Industry Topped $43 Billion In Revenue Last Year, Study Finds, But It's Not All Good News | first = David | last = Robb | date = July 13, 2018 | access-date = January 22, 2019 | work = [[Deadline Hollywood]] | archive-date = January 23, 2019 | archive-url = https://web.archive.org/web/20190123071738/https://deadline.com/2018/07/film-industry-revenue-2017-ibisworld-report-gloomy-box-office-1202425692/ | url-status = live }}</ref>

Since 2000, the video game industry was considered [[recession]]-proof, having thrived compared to other industries during the 2008 [[Great Recession]], and as one of the more profitable industries during the [[COVID-19 pandemic]] in 2020 and 2021. Video games are seen as a low-cost vice and entertainment for consumers when approaching recession.<ref>https://nbcnews.com/id/wbna23472166 </ref><ref>{{cite web | url=https://gamedeveloper.com/business/analyze-this-is-the-video-game-industry-recession-proof- | title=Analyze This: Is the Video Game Industry Recession-Proof? | first=Howard | last=Wen | date=April 9, 2008 | access-date=September 14, 2022 | archive-date=September 15, 2022 | archive-url=https://web.archive.org/web/20220915043751/https://www.gamedeveloper.com/business/analyze-this-is-the-video-game-industry-recession-proof- | url-status=live }}</ref> However, in 2022, atop pandemic economic fallout including chip shortages, supply chain disruption, and consumers preferring outdoor activities, the industry started to indicate recession with global revenues falling for the first time in twenty years.<ref>{{cite news |url=https://washingtonpost.com/video-games/2022/08/22/are-video-games-recession-proof-sort-experts-say/ |title=Even 'recession-proof' video game industry is feeling an economic chill |newspaper=[[The Washington Post]] |date=2022-08-22 |accessdate=2022-09-03 |archive-date=August 24, 2022 |archive-url=https://web.archive.org/web/20220824211145/https://www.washingtonpost.com/video-games/2022/08/22/are-video-games-recession-proof-sort-experts-say/ |url-status=live }}</ref>

=== Retail ===
[[File:Isokatu 28 Oulu 20190210.jpg|thumb|[[GameStop]] video game store at the Isokatu street in [[Oulu]]]]
The industry's shift from [[brick and mortar]] retail to digital downloads led to a severe sales decline at video game retailers such as [[GameStop]], following other media retailers superseded by Internet delivery, such as [[Blockbuster LLC|Blockbuster]], [[Tower Records (music retailer)|Tower Records]], and [[Virgin Megastores]]. GameStop diversified its services by purchasing chains that repair wireless devices and expanding its trade-in program through which customers trade used games for credit towards new games.<ref>{{Cite news |last1=Wingfield |first1=Nick |title=As Downloads Take Over, a Turning Point for the Video Game Industry |work=[[The New York Times]] |date=December 20, 2015 |url=https://www.nytimes.com/2015/12/21/technology/as-downloads-take-over-a-turning-point-for-the-video-game-industry.html |issn=0362-4331 |access-date=June 30, 2017 |archive-date=July 2, 2018 |archive-url=https://web.archive.org/web/20180702093646/https://www.nytimes.com/2015/12/21/technology/as-downloads-take-over-a-turning-point-for-the-video-game-industry.html |url-status=live }}</ref> The company began to produce its own merchandise and games. In Britain, the games retailer [[Game (retailer)|Game]] revamped its stores so customers would spend time playing games there. It built a gaming arena for events and tournaments.<ref>{{cite web |last1=Dring |first1=Christopher |title=GAME launches Belong - is this the future of video games retail? |work=GamesIndustry.biz |date=December 16, 2016 |url=http://www.gamesindustry.biz/articles/2016-12-15-game-launches-belong-is-this-the-future-of-video-games-retail |access-date=June 30, 2017 |archive-date=June 15, 2017 |archive-url=https://web.archive.org/web/20170615075657/http://www.gamesindustry.biz/articles/2016-12-15-game-launches-belong-is-this-the-future-of-video-games-retail |url-status=live }}</ref> The shift to digital marketplaces, especially for smartphones, led to an influx of inexpensive and disposable games,<ref>{{Cite news |last1=Suellentrop |first1=Chris |last2=Totilo |first2=Stephen |title=Video Game Retail Sales Decline Despite New Hits |work=[[The New York Times]] |date=October 3, 2012 |url=https://www.nytimes.com/2012/10/07/arts/video-games/video-game-retail-sales-decline-despite-new-hits.html |issn=0362-4331 |access-date=June 30, 2017 |archive-date=January 31, 2018 |archive-url=https://web.archive.org/web/20180131002107/http://www.nytimes.com/2012/10/07/arts/video-games/video-game-retail-sales-decline-despite-new-hits.html |url-status=live }}</ref> and lower engagement among gamers who otherwise purchased new games from retail.<ref>{{cite web |last1=Dring |first1=Christopher |title=What's going wrong at UK games retail? |work=GamesIndustry.biz |date=November 21, 2016 |url=http://www.gamesindustry.biz/articles/2016-11-21-whats-going-wrong-at-games-retail |access-date=June 30, 2017 |archive-date=June 22, 2017 |archive-url=https://web.archive.org/web/20170622110957/http://www.gamesindustry.biz/articles/2016-11-21-whats-going-wrong-at-games-retail |url-status=live }}</ref><!-- more in this source --> Customers also shifted away from the tradition of buying games on their first day of release.<ref>{{cite web |last1=Dring |first1=Christopher |title=Is the industry's obsession with Day One coming to an end? |work=GamesIndustry.biz |date=November 8, 2016 |url=http://www.gamesindustry.biz/articles/2016-11-07-is-the-industrys-obsession-with-day-one-coming-to-an-end |access-date=June 30, 2017 |archive-date=November 27, 2016 |archive-url=https://web.archive.org/web/20161127051245/http://www.gamesindustry.biz/articles/2016-11-07-is-the-industrys-obsession-with-day-one-coming-to-an-end |url-status=live }}</ref>

Publishers often funded trade-in deals to encourage consumers to purchase new games. Trade-in customers at the Australian retailer Game would purchase twice the games per year as non-trade-in customers. The sale of pre-owned games kept retailers in business, and composed about a third of Game's revenue. Retailers also saved on the UK's value-added tax, which only taxed the retailer's profit on pre-owned games, rather than the full sale on regular games. The former trade-in retail executives behind the trade-in price comparison site Trade In Detectives estimated that the United Kingdom's trade-in industry was about a third of the size of its new games business.{{r|Eurogamer: trade-in myths}} They figured that sites such as [[eBay]], which convert used games into cash, compose about a quarter of the UK's trade-in market,<ref>{{cite web |last1=Parfitt |first1=Ben |title=Pre-owned price comparison site Trade In Detectives goes live |work=[[MCV (magazine)|MCV]] |date=August 7, 2013 |url=http://www.mcvuk.com/news/read/pre-owned-price-comparison-site-trade-in-detectives-goes-live/0119776 |access-date=June 30, 2017 |archive-date=September 7, 2016 |archive-url=https://web.archive.org/web/20160907143156/http://www.mcvuk.com/news/read/pre-owned-price-comparison-site-trade-in-detectives-goes-live/0119776 |url-status=live }}</ref> but do not keep the credit within the industry. While consumers might appear to receive better offers on these sites, they also take about 15 percent of the selling price in fees. Alternatively, some retailers will match the trade-in values offered by their competitors. Microsoft's original plan for the Xbox One attempted to translate trade-in deals for the digital marketplace, with a database of product licenses that shops would be able to resell with publisher permission, though the plan was poorly received or poorly sold.<ref name="Eurogamer: trade-in myths">{{cite web |last1=Purchese |first1=Robert |title=Myth-busting the murky world of video game trade-ins |work=[[Eurogamer]] |date=December 18, 2013 |url=http://www.eurogamer.net/articles/2013-12-03-myth-busting-the-murky-world-of-video-game-trade-ins |access-date=June 30, 2017 |archive-date=June 22, 2017 |archive-url=https://web.archive.org/web/20170622004410/http://www.eurogamer.net/articles/2013-12-03-myth-busting-the-murky-world-of-video-game-trade-ins |url-status=live }}</ref>

== Practices ==
Video game industry practices are similar to those of other entertainment industries (e.g., the [[recording industry|music recording industry]]), but the video game industry in particular has been accused of treating its development talent poorly. This promotes independent development, as developers leave to form new companies and projects. In some notable cases, these new companies grow large and impersonal, having adopted the business practices of their forebears, and ultimately perpetuate the cycle.

However, unlike the music industry, where modern technology has allowed a fully professional product to be created extremely inexpensively by an independent musician, modern games require increasing amounts of manpower and equipment. This dynamic makes [[video game publisher|publishers]], who fund the [[video game developer|developers]], much more important than in the music industry.

=== Breakaways ===
In the video game industry, it is common for developers to leave their current studio and start their own. A particularly famous case is the "original" independent developer [[Activision]], founded by former [[Atari]] developers. Activision grew to become the world's second largest game publisher.<ref>{{cite news|url=http://www.thestreet.com/story/10224904/activision-aims-for-sweet-spot.html|title=Activision Aims for Sweet Spot|last=Wolverton|first=Troy|date=May 24, 2005|publisher=TheStreet.com|access-date=March 30, 2009|archive-url=https://web.archive.org/web/20110606004753/http://www.thestreet.com/story/10224904/activision-aims-for-sweet-spot.html|archive-date=June 6, 2011|url-status=dead}}</ref> In the meantime, many of the original developers left to work on other projects. For example, founder [[Alan Miller (game designer)|Alan Miller]] left Activision to start another video game development company, [[Accolade (company)|Accolade]] (now [[Atari]] née [[Infogrames]]).

Activision was popular among developers for giving them credit in the packaging and title screens for their games, while Atari disallowed this practice. As the video game industry took off in the mid-1980s, many developers faced the more distressing problem of working with fly-by-night or unscrupulous publishers that would either fold unexpectedly or run off with the game profits.

=== Piracy ===
The industry claims [[software piracy]] to be a big problem, and takes measures to counter this.<ref>{{cite web |last=Valjalo |first=David |url=http://www.next-gen.biz/news/3ds-will-fight-piracy-firmware |title=3DS Will Fight Piracy With Firmware &#124; Edge Magazine |publisher=Next-gen.biz |date=October 4, 2010 |access-date=November 9, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20130403101742/http://www.edge-online.com/news/3ds-will-fight-piracy-firmware/ |archive-date=April 3, 2013  }}</ref>
[[Digital rights management]] have proved to be the most unpopular with gamers, as a measure to counter piracy.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/technology/7972677.stm |title=Technology &#124; EA 'dumps DRM' for next Sims game |work=BBC News |date=March 31, 2009 |access-date=November 9, 2010 |archive-date=December 2, 2012 |archive-url=https://web.archive.org/web/20121202221359/http://news.bbc.co.uk/2/hi/technology/7972677.stm |url-status=live }}</ref>
The most popular and effective strategy to counter piracy is to change the business model to [[freemium]], where gamers pay for their in-game needs or service. Strong server-side security is required for this, to properly distinguish authentic transactions from [[Cheating in video games|hacked]] transactions.

=== Creative control ===
On various Internet forums, some gamers have expressed disapproval of publishers having creative control since publishers are more apt to follow short-term market trends rather than invest in risky but potentially lucrative ideas. On the other hand, publishers may know better than developers what consumers want. The relationship between video game developers and publishers parallels the relationship between [[Recording Artists' Coalition|recording artists]] and [[RIAA|record labels]] in many ways. But unlike the [[music industry]], which has seen flat or declining sales in the early 2000s,<ref>{{cite web|url=http://www.ifpi.org/content/section_news/20021010.html|title=Global sales of recorded music down 9.2% in the first half of 2002 from IFPI|work=ifpi.org|access-date=July 28, 2010|archive-date=August 10, 2012|archive-url=https://web.archive.org/web/20120810091854/http://www.ifpi.org/content/section_news/20021010.html|url-status=dead}}</ref><ref>{{cite web|url=http://www.ifpi.org/content/section_news/20031001.html|title=Global sales of recorded music down 10.9% in the first half of 2003 from IFPI|work=ifpi.org|access-date=July 28, 2010|archive-date=February 6, 2011|archive-url=https://web.archive.org/web/20110206092624/http://www.ifpi.org/content/section_news/20031001.html|url-status=dead}}</ref><ref>{{cite web|url=http://www.ifpi.org/content/section_news/20051003.html|title=Digital sales triple to 6% of industry retail revenues as global music market falls 1.9% (2005) from IFPI|work=ifpi.org|access-date=July 28, 2010|archive-date=March 3, 2013|archive-url=https://web.archive.org/web/20130303081628/http://www.ifpi.org/content/section_news/20051003.html|url-status=dead}}</ref> the video game industry continues to grow.<ref>{{cite news|url=https://www.reuters.com/article/idUSN2132172920070621|title=Video game industry growth still strong: study|work=Reuters|date=June 21, 2007|last1=Szalai|first1=Georg|access-date=July 3, 2017|archive-date=March 8, 2021|archive-url=https://web.archive.org/web/20210308141714/https://www.reuters.com/article/idUSN2132172920070621|url-status=live}}</ref>

In the [[computer game]]s industry, it is easier to create a startup, resulting in many successful companies. The [[video game console|console]] industry is more closed, and a game developer must have up to three licenses from the [[console manufacturer]]:
# A license to develop games for the console
# The publisher must have a license to publish games for the console
# A separate license for each game

In addition, the developer must usually buy development systems from the console manufacturer in order to even develop a game for consideration, as well as obtain concept approval for the game from the console manufacturer. Therefore, the developer normally has to have a publishing deal in place before starting development on a game project, but in order to secure a publishing deal, the developer must have a track record of console development, something which few startups will have.

=== Alternatives ===
An alternative method for publishing video games is to self-publish using the [[shareware]] or [[Open-source software|open source]] model over the [[Internet]].

=== Gaming conventions ===
[[File:Tokyo-Game-Show-2023-Day3-2023-09-23 192.jpg|thumb|Tokyo Game Show, In Makuhari Messe, Chiba City, Chiba Prefecture, Japan, Showing off a new game called Tekken 8(In 2023)]]
[[Gaming convention]]s are an important showcase of the industry. The major annual video game conventions include [[Gamescom]] in [[Cologne]] (Germany), [[Electronic Entertainment Expo|E3]] in [[Los Angeles]] (US),<ref name="Forbes">{{cite magazine|title=E3 is Obsolete, But it Doesn't Matter|url=https://www.forbes.com/sites/davidthier/2012/06/08/e3-is-obsolete-but-it-doesnt-matter/|magazine=Forbes|date=June 8, 2012|access-date=October 18, 2012}}</ref> [[Penny Arcade Expo]], [[Summer Game Fest|Summer Games Fest]], [[Tokyo Game Show|Tokyo Game Show(TGS)]], [[Brasil Game Show|Brazil Game Show]](BGS), and etc. 

=== Regional distribution ===
{{See also|Regional lockout#Video games}}
{{expand section|date=June 2018|reason=Needs discussion of regions (NA, JP, EU, & AU, plus explaining about regions not covered [e.g., South America, Africa, the rest of Asia])}}
As with other forms of media, video games have often been released in different world regions at different times.<ref name="denofgeek1">{{cite web |author=Josh Butler |url=https://www.denofgeek.com/us/tv/20566/the-irritation-of-staggered-release-dates |title=The irritation of staggered release dates |publisher=Den of Geek |date=August 11, 2010 |access-date=June 5, 2018 |archive-date=June 8, 2018 |archive-url=https://web.archive.org/web/20180608105529/http://www.denofgeek.com/us/tv/20566/the-irritation-of-staggered-release-dates |url-status=live }}</ref> The practice has been used where [[video game localization|localization]] is not done in parallel with the rest of development<ref>{{cite web |last=Elliman |first=Sarah |url=https://www.gameskinny.com/w75lm/east-to-west-the-major-differences-in-game-releases-based-on-geographic-locations |title=East to West: The Major Differences in Game Releases Based on Geographic Locations |publisher=Gameskinny.com |date=November 8, 2017 |access-date=June 5, 2018 |archive-date=August 3, 2020 |archive-url=https://web.archive.org/web/20200803150525/https://www.gameskinny.com/w75lm/east-to-west-the-major-differences-in-game-releases-based-on-geographic-locations |url-status=live }}</ref> or where the game must be encoded differently, as in [[PAL]] vs. [[NTSC]].<ref>{{cite web |url=https://www.dungeoncrawl.com.au/buying/buying-guides/region-coding-guide/ |title=Region Lock and Video Games |publisher=Dungeoncrawl.com.au |access-date=June 5, 2018 |archive-date=April 7, 2018 |archive-url=https://web.archive.org/web/20180407035528/https://www.dungeoncrawl.com.au/buying/buying-guides/region-coding-guide/ |url-status=live }}</ref> It has also been used to provide price discrimination in different markets or to focus limited marketing resources.<ref name="denofgeek1"/> Developers may also stagger digital releases so as not to overwhelm the servers hosting the game.<ref>{{cite web |author=Jason Rodriguez |url=https://www.destructoid.com/destiny-2-will-have-a-staggered-worldwide-release-australia-and-japan-get-it-first-458184.phtml |title=Destiny 2 will have a staggered worldwide release, Australia and Japan get it first |publisher=Destructoid.com |date=August 31, 2017 |access-date=June 5, 2018 |archive-date=September 3, 2017 |archive-url=https://web.archive.org/web/20170903132112/https://www.destructoid.com/destiny-2-will-have-a-staggered-worldwide-release-australia-and-japan-get-it-first-458184.phtml |url-status=live }}</ref>

== International practices ==
The video game industry had its primary roots in the United States following the introduction of arcade games and console systems, with Japan soon following. With the introduction of the personal computer, Western Europe also became a major center for video game development. Since then, the industry is primarily led by companies in North America, Europe, and Japan, but other regions, including Australia/New Zealand, and other East Asian countries including China and South Korea, have become significant sectors for the industry.

=== World trends ===
International video game revenue was over $142B in 2022.<ref name="newzoo2022">{{cite web|url=https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues/|title=Top Countries/Markets by Game Revenues|website=newzoo.com|publisher=newzoo|access-date=June 27, 2023|url-status=live|archive-date=June 27, 2023|archive-url=https://web.archive.org/web/20230627192321/https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues/}}</ref> This is almost double the revenue of the international [[film industry]] in 2023.<ref>{{cite web|title=Key data on the movie production and distribution industry worldwide in 2022|url=https://www.statista.com/statistics/326011/movie-production-distribution-industry/|publisher=Statistica|access-date=June 27, 2022}}</ref>

The largest nations by estimated video game revenues in 2016 are the United States ($46.4B), China ($44B), and Japan ($19.1B).<ref name="newzoo2022" /> 

The gaming industry saw strong growth in 2020, the first year of the pandemic, and this trend continued into 2021.<ref>{{Cite web|title = A SURVEY OF THE VIDEO GAME MARKET IN 2021|url = https://allcorrectgames.com/insights/a-survey-of-the-video-game-market-in-2021/|website = allcorrectgames.com|date = 1 April 2022|access-date = 2023-04-07|archive-date = April 7, 2023|archive-url = https://web.archive.org/web/20230407082612/https://allcorrectgames.com/insights/a-survey-of-the-video-game-market-in-2021/|url-status = live}}</ref>

=== Largest markets ===
According to market research firm Newzoo, the following countries are the largest video game markets by annual revenue, {{as of|2022|lc=y}}:<ref>{{cite web|title= Top countries and markets by video game revenues|url=https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues |url-status=live |archive-url=https://web.archive.org/web/20230326135814/https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues |archive-date=2023-03-26|access-date=6 October 2023|website=Newzoo}}</ref>

{| class="wikitable sortable" style="text-align:center"
|-
! Rank
! Country
! Revenue (billion {{US$|link=yes}})
|-
| 1
| [[Video games in the United States|United States]]
| 46,4
|-
| 2
| [[Video games in China|China]]
| 44,0
|-
| 3
| [[Video games in Japan|Japan]]
| 19,1
|-
| 4
| [[Video games in South Korea|South Korea]]
| 7,4
|-
| 5
| [[Video games in Germany|Germany]]
| 6,5
|-
| 6
| [[Video games in France|France]]
| 5,8
|-
| 7
| [[Video games in the United Kingdom|United Kingdom]]
| 5,5
|-
| 8
| [[Video games in Canada|Canada]]
| 3,3
|-
| 9
| [[Video games in Italy|Italy]]
| 3,1
|-
| 10
| [[Video games in Brazil|Brazil]]
| 2,6
|}

According to market research firm Newzoo, the following countries are the largest video game markets by number of players in the top 10 richest video game markets, {{as of|2022|lc=y}}:<ref>{{cite web|title= Top countries and markets by video game revenues|url=https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues |url-status=live |archive-url=https://web.archive.org/web/20230326135814/https://newzoo.com/resources/rankings/top-10-countries-by-game-revenues |archive-date=2023-03-26|access-date=6 October 2023|website=Newzoo}}</ref>

{| class="wikitable sortable" style="text-align:center"
|-
! Rank
! Country
! Number of players (million)
|-
| 1
| [[Video games in China|China]]
| 699 million
|-
| 2
| [[Video games in the United States|United States]]
| 209 million
|-
| 3
| [[Video games in Brazil|Brazil]]
| 102 million
|-
| 4
| [[Video games in Japan|Japan]]
| 73 million
|-
| 5
| [[Video games in Germany|Germany]]
| 49 million
|-
| 6
| [[Video games in France|France]]
| 45 million
|-
| 7
| [[Video games in the United Kingdom|United Kingdom]]
| 38 million
|-
| 8
| [[Video games in Italy|Italy]]
| 36 million
|-
| 9
| [[Video games in South Korea|South Korea]]
| 33 million
|-
| 10
| [[Video games in Canada|Canada]]
| 22 million
|}

In general, spending on gaming tends to increase with increase in nominal GDP. However, gaming is relatively more popular in [[East Asia]], and relatively less popular in [[India]].

[[File:Video game industry revenue vs nominal GDP.png|left|800px|Total gaming revenue (mobile + PC + console) vs nominal GDP by country]]
{{Clear}}









===North America===
==== Canada ====
[[File:Ubisoft Montreal.jpg|thumb|[[Ubisoft Montreal]]]]
{{Main|Video gaming in Canada}}
Canada has the third largest video game industry in terms of employment numbers.<ref name="networkworld1">{{cite web |url=http://www.networkworld.com/news/2010/040610-canada-boasts-the-third-largest-video.html |title=Canada boasts the third-largest video game industry |publisher=Networkworld.com |date=April 6, 2010 |access-date=November 9, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100412141657/http://www.networkworld.com/news/2010/040610-canada-boasts-the-third-largest-video.html |archive-date=April 12, 2010  }}</ref> The video game industry has also been booming in Montreal since 1997, coinciding with the opening of [[Ubisoft Montreal]].<ref>{{cite web|url=http://siiscanada.com/newsletter/pg5.htm|title=Immigration Services For Canada, USA, Australia, UK, Australia & New Zealand !|work=siiscanada.com|url-status=dead|archive-url=https://web.archive.org/web/20151007070653/http://siiscanada.com/newsletter/pg5.htm|archive-date=October 7, 2015}}</ref> Recently, the city has attracted world leading game developers and publishers studios such as [[Ubisoft]], [[Electronic Arts|EA]], [[Eidos Interactive]], [[Artificial Mind and Movement]], [[BioWare]], [[Warner Bros. Interactive Entertainment]], and [[Strategy First]], mainly because video games jobs have been heavily subsidized by the provincial government. Every year, this industry generates billions of dollars and thousands of jobs in the Montreal area.<ref>{{cite web|url=http://www.tourisme-montreal.org/meetings/2015/01/20/business-sectors/|title=What are the leading business sectors in Montréal? We're glad you asked|work=Meetings à la Montréal|access-date=October 5, 2015|archive-date=October 6, 2015|archive-url=https://web.archive.org/web/20151006050909/http://www.tourisme-montreal.org/meetings/2015/01/20/business-sectors/|url-status=live}}</ref> [[Vancouver]] has also developed a particularly large [[business cluster|cluster]] of [[video game]] developers, the largest of which, [[Electronic Arts]], employs over two thousand people. The ''[[Assassin's Creed]]'' series, along with the ''[[Tom Clancy]]'' series have all been produced in Canada and have achieved worldwide success. For consumers, the largest video games convention in Canada is the Enthusiast Gaming Live Expo (EGLX).<ref>{{cite web |author=Kevin Carignan |url=https://www.destructoid.com/dtoid-is-hosting-canada-s-largest-gaming-event-eglx-returns-march-9-11-2018-469022.phtml |title=Dtoid is hosting Canada's largest gaming event! EGLX returns, March 9-11, 2018 |publisher=Destructoid.com |date=January 30, 2018 |access-date=June 5, 2018 |archive-date=November 5, 2017 |archive-url=https://web.archive.org/web/20171105105241/https://www.destructoid.com/dtoid-is-hosting-canada-s-largest-gaming-event-eglx-returns-march-9-11-2018-469022.phtml |url-status=live }}</ref>

==== United States ====
{{Main|Video gaming in the United States}}
[[File:Activisionheadquarters.jpg|thumb|Activision (now [[Activision Blizzard]]) is the first independent or third-party video game developer.]]
The video game industry got its start in the United States in the late 1970s and early 1980s with the creation of arcade games like ''[[Pong]]'' and the first home console, the [[Magnavox Odyssey]]. Several factors, including loss of publishing control, a flooded market, and competition from personal computers, led to the [[1983 video game crash]] in the U.S., affecting both arcades and home game systems. Nintendo's introduction of the Nintendo Entertainment System helped to revitalize the industry, but until Microsoft's introduction of the [[Xbox]] in the early 2000s, the hardware side was dominated by mostly Japanese-developed systems. Instead, much of the industry's growth in the U.S. was on game development, implementing new game technologies and gameplay concepts, as well as creating the large-scale publisher model used by companies like [[Electronic Arts]] to support marketing and distribution of games.

The United States has the largest video games presence in the world in terms of total industry employees.<ref name="networkworld1"/><ref>{{cite web |url=http://www.gamesindustry.biz/articles/2012-12-11-us-still-the-gaming-super-power |title=US still the gaming super power &#124; GamesIndustry International |publisher=Gamesindustry.biz |date=December 11, 2012 |access-date=February 11, 2014 |archive-date=March 31, 2014 |archive-url=https://web.archive.org/web/20140331110754/http://www.gamesindustry.biz/articles/2012-12-11-us-still-the-gaming-super-power |url-status=live }}</ref> In 2017, the U.S. game industry as a whole was worth US$18.4 billion and consisted of roughly 2457 companies that had a rough total of 220,000 people employed.<ref name="Takahashi 2017">{{cite web | last=Takahashi | first=Dean | title=The U.S. game industry has 2,457 companies supporting 220,000 jobs | website=VentureBeat | date=February 14, 2017 | url=https://venturebeat.com/2017/02/14/the-u-s-game-industry-has-2457-companies-supporting-220000-jobs/ | access-date=April 7, 2020 | archive-date=April 7, 2020 | archive-url=https://web.archive.org/web/20200407175140/https://venturebeat.com/2017/02/14/the-u-s-game-industry-has-2457-companies-supporting-220000-jobs/ | url-status=live }}</ref><ref>{{cite web|url=https://www.statista.com/topics/868/video-games/|title=Video Game Industry - Statistics & Facts|last=Gough|first=Christina|date=August 12, 2019|website=Statista|access-date=August 23, 2019|archive-date=September 9, 2019|archive-url=https://web.archive.org/web/20190909092840/https://www.statista.com/topics/868/video-games/|url-status=live}}</ref> U.S. video game revenue is forecast to reach $230 billion by 2022,<ref>{{cite web|url=https://www.digi-capital.com/news/2018/01/games-software-hardware-165b-in-2018-230b-in-5-years-record-2b-investment-last-year/|title=Games software/hardware $165B+ in 2018, $230B+ in 5 years, record $2B+ investment last year {{!}} Digi Capital|language=en-US|access-date=August 24, 2019|archive-date=August 24, 2019|archive-url=https://web.archive.org/web/20190824032038/https://www.digi-capital.com/news/2018/01/games-software-hardware-165b-in-2018-230b-in-5-years-record-2b-investment-last-year/|url-status=dead}}</ref> making it the largest video game market in the world.<ref name="newzoo2014">{{cite web|url=https://newzoo.com/insights/rankings/top-100-countries-by-game-revenues/|title=Top 100 Countries by Game Revenue|date=January 2017|website=newzoo.com|publisher=newzoo|access-date=June 3, 2016|archive-date=March 30, 2016|archive-url=https://web.archive.org/web/20160330093437/https://newzoo.com/insights/rankings/top-100-countries-by-game-revenues/|url-status=live}}</ref> Over 150 million Americans play video games, with an average age of 35 and a gender breakdown of 59 percent male and 41 percent female.<ref>{{cite web|url=http://www.theesa.com/about-esa/industry-facts/|title=Industry Facts|publisher=[[Entertainment Software Association]]|access-date=September 23, 2016|archive-date=May 23, 2019|archive-url=https://web.archive.org/web/20190523121050/http://www.theesa.com/about-esa/industry-facts/|url-status=dead}}</ref> American gamers are more likely to vote than non-gamers, feel that the economy is the most important political issue, and lean [[conservative]], however party demographics are split evenly with 38% identifying as Democrats, 38% identifying as Republicans, and 24% identifying as Independents.<ref>{{cite web|url=http://www.theesa.com/article/new-study-finds-video-game-players-are-highly-engaged-politically/|title=New Study Finds Video Game Players Are Highly Engaged Politically|publisher=[[Entertainment Software Association]]|access-date=September 23, 2016|archive-date=September 23, 2016|archive-url=https://web.archive.org/web/20160923111214/http://www.theesa.com/article/new-study-finds-video-game-players-are-highly-engaged-politically/|url-status=live}}</ref>

===Europe===
{{Main|Video gaming in Russia|Video gaming in France|Video gaming in Italy|Video gaming in Spain}}

==== Germany ====
[[File:Gamescom 2009 - Fujitsu (5154).jpg|right|thumb|The [[Gamescom]] in [[Cologne]] is the world's leading game trade fair.]]
{{Main|Video gaming in Germany}}
[[Germany]] has the largest video games market in Europe, with revenues of $4.1&nbsp;billion forecast for 2017.<ref>{{cite web|url=https://newzoo.com/insights/rankings/top-100-countries-by-game-revenues/|title=Top 100 Countries By Game Revenues|date=January 2017|website=newzoo.com|access-date=October 1, 2014|archive-date=March 30, 2016|archive-url=https://web.archive.org/web/20160330093437/https://newzoo.com/insights/rankings/top-100-countries-by-game-revenues/|url-status=live}}</ref> The annual [[Gamescom]] in [[Cologne]] is Europe's largest video game expo.

One of the earliest internationally successful video game companies was [[Gütersloh]]-based [[Rainbow Arts]] (founded in 1984) who were responsible for publishing the popular ''[[Turrican]]'' series of games. The [[Anno (series)|Anno series]] and [[The Settlers|The Settlers series]] are globally popular strategy game franchises since the 1990s. The [[Gothic series]], [[SpellForce: The Order of Dawn|SpellForce]] and [[Risen (video game)|Risen]] are established RPG franchises. The [[X (game series)|X series]] by [[Egosoft]] is the best-selling space simulation. The [[FIFA Manager (video game series)|FIFA Manager series]] was also developed in Germany. The German action game [[Spec Ops: The Line]] (2012) was successful in the markets and received largely positive reviews. One of the most famed game from Germany is ''[[Far Cry]]'' (2004) by [[Frankfurt]]-based [[Crytek]], who also produced the topseller ''[[Crysis]]'' and its sequels later.

Other well-known current and former developers from Germany include [[Ascaron]], [[Blue Byte]], [[Deck13]], [[EA Phenomic]], [[Piranha Bytes]], [[Radon Labs]], [[Related Designs]], [[Spellbound Entertainment]] and [[Yager Development]]. Publishers include [[Deep Silver]] ([[Plaion]]), [[dtp entertainment]], [[Kalypso Media]] and [[Nintendo Europe]]. [[Bigpoint Games]], [[Gameforge]], [[Goodgame Studios]] and [[Wooga]] are among the world's leading browser game and social network game developers/distributors.

==== United Kingdom ====
{{Main|Video gaming in the United Kingdom}}
The [[United Kingdom|UK]] industry is the third largest in the World in terms of developer success and sales of hardware and software by country alone but fourth behind Canada in terms of people employed.<ref name="networkworld1"/> The size of the UK game industry is comparable to its film or music industries.<ref>{{cite web|url=http://www.gamesindustry.biz/articles/2016-04-04-view-from-the-tower|title=The View From the Tower|date=April 5, 2016|publisher=gamesindustry.biz|access-date=April 6, 2016|archive-date=April 8, 2016|archive-url=https://web.archive.org/web/20160408053922/http://www.gamesindustry.biz/articles/2016-04-04-view-from-the-tower|url-status=live}}</ref>

Like most European countries, the UK entered the video game industry through personal computers rather than video game consoles. Low-cost computers like the [[ZX Spectrum]] and [[Amiga 500]] led to numerous "bedroom coders" that would make and sell games through mail-order or to distributors that helped to mass-produce them.<ref name="independent origins">{{cite news | url = https://www.independent.co.uk/life-style/gadgets-and-tech/features/geeks-who-rocked-the-world-documentary-looks-back-at-origins-of-the-computer-games-industry-9997037.html | title = Geeks Who Rocked The World: Documentary Looks Back At Origins Of The Computer-games Industry | first = Rhordi | last = Mardsen | date = January 25, 2015 | access-date = October 3, 2019 | work = [[The Independent]] | archive-date = November 9, 2019 | archive-url = https://web.archive.org/web/20191109005014/https://www.independent.co.uk/life-style/gadgets-and-tech/features/geeks-who-rocked-the-world-documentary-looks-back-at-origins-of-the-computer-games-industry-9997037.html | url-status = live }}</ref> Coupled with quirky [[british humour]], the "Britsoft" wave of popular games led to a number of influential people and studios in the 1990s.<ref>{{cite web | url = https://www.theguardian.com/technology/gamesblog/2010/jan/26/casual-gaming-indiegames | title = Back to the bedroom: how indie gaming is reviving the Britsoft spirit | first = Keith | last = Stuart | date = January 27, 2010 | access-date = October 3, 2019 | work = [[The Guardian]] | archive-date = April 5, 2019 | archive-url = https://web.archive.org/web/20190405184826/https://www.theguardian.com/technology/gamesblog/2010/jan/26/casual-gaming-indiegames | url-status = live }}</ref> As game programming became more complex and costly in the early 2000s, more traditional studio structures arose to support both personal computers and consoles, with several studios that, in some form or another, remain highly regarded and influential in the present.<ref name="bbc billion pounds">{{cite web | url = https://www.bbc.com/timelines/zt23gk7 | title = How British video games became a billion pound industry | date = December 2014 | access-date = September 30, 2019 | publisher = BBC | archive-date = September 20, 2019 | archive-url = https://web.archive.org/web/20190920212739/https://www.bbc.com/timelines/zt23gk7 | url-status = live }}</ref>

Some of the studios have become defunct or been purchased by larger companies such as ''[[LittleBigPlanet]]'' developer, [[Media Molecule]]<ref>{{cite web |url=http://blog.eu.playstation.com/2010/03/02/media-molecule-officially-joins-the-playstation-family/ |title=Media Molecule Officially Joins The PlayStation Family – PlayStation.Blog.Europe |publisher=Blog.eu.playstation.com |date=March 2, 2010 |access-date=January 27, 2011 |archive-date=March 21, 2015 |archive-url=https://web.archive.org/web/20150321050200/http://blog.eu.playstation.com/2010/03/02/media-molecule-officially-joins-the-playstation-family/ |url-status=live }}</ref> and [[Codemasters]].<ref>{{cite web |last=Hinkle |first=David |url=http://www.joystiq.com/2010/04/05/reliance-big-entertainment-acquires-50-stake-in-codemasters |title=Reliance Big Entertainment acquires 50% stake in Codemasters |publisher=Joystiq |date=April 5, 2010 |access-date=November 9, 2010 |archive-date=November 7, 2010 |archive-url=https://web.archive.org/web/20101107211453/http://www.joystiq.com/2010/04/05/reliance-big-entertainment-acquires-50-stake-in-codemasters/ |url-status=live }}</ref> The country is home to some of the world's most successful video game franchises, such as ''[[Tomb Raider]]'', ''[[Grand Theft Auto]]'', ''[[Fable (video game series)|Fable]]'', ''[[Colin McRae: Dirt|Colin McRae Dirt]]'', and ''[[Total War (video game series)|Total War]]''.

The country also went without tax relief until March 21, 2012<ref>{{cite web |last=Henderson |first=Rik |url=http://www.pocket-lint.com/news/44996/budget-2012-tax-relief-video-games |title=UK tax relief break |date=March 21, 2012 |access-date=March 31, 2012 |archive-date=March 24, 2012 |archive-url=https://web.archive.org/web/20120324020619/http://www.pocket-lint.com/news/44996/budget-2012-tax-relief-video-games |url-status=live }}</ref> when the British government changed its mind on tax relief for UK developers, which without, meant most of the talented development within the UK may move overseas for more profit, along with parents of certain video game developers which would pay for having games developed in the UK. The industry trade body TIGA estimates that it will increase the games development sector's contribution to UK GDP by £283 million, generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years.<ref>{{cite web |url=https://www.wired.co.uk/news/archive/2010-06/22/game-industry-tax-relief-plans-are-shelved |title=Game industry tax relief plans are shelved |publisher=Wired.co.uk |date=June 22, 2010 |access-date=November 9, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100625151807/http://www.wired.co.uk/news/archive/2010-06/22/game-industry-tax-relief-plans-are-shelved |archive-date=June 25, 2010  }}</ref> Before the tax relief was introduced there was a fear that the UK game industry could fall behind other leading game industries around the world such as France and Canada, of which Canada overtook the UK in terms of job numbers in the industry in 2010.<ref>{{cite web |title=Canada overtakes UK |url=http://www.develop-online.net/news/34406/Canada-overtakes-UK-industry-workforce-tally |date=March 31, 2012 |access-date=March 31, 2012 |archive-date=May 9, 2012 |archive-url=https://web.archive.org/web/20120509034558/http://www.develop-online.net/news/34406/Canada-overtakes-UK-industry-workforce-tally |url-status=live }}</ref>

===Asia===
==== China ====
{{Main|Video gaming in China}}
[[File:Tencent Seafront Tower in Dec2020.jpg|thumb|right|[[Tencent]] is the largest company in the world by video game revenue.<ref>{{cite web|url=http://www.newzoo.com/insights/game-revenues-top-25-companies-17-totaling-25bn/|title=Game Revenues of Top 25 Companies up 17%, Totaling $25Bn|publisher=newzoo|access-date=October 2, 2014|archive-date=October 4, 2014|archive-url=https://web.archive.org/web/20141004033959/http://www.newzoo.com/insights/game-revenues-top-25-companies-17-totaling-25bn/|url-status=live}}</ref>]]
China had not been a major factor in the global video game market early on due to economic factors, governmental oversight, and a black market for foreign products. The government initiated a ban on video game consoles in 2000 that lasted through 2014, during which China's video game market grew for personal computer games, particularly subscription-based and microtransaction-based ones that were amenable to use in PC cafes, and later into mobile games. Media publishers like [[Tencent]] and [[NetEase]] focused on these types of games, growing successfully during the 2010s to become leading international companies. As of 2015, China's video game market revenue exceeds that of the United States, and is the largest country by both revenue and number of players.<ref>{{cite web|url= https://newzoo.com/insights/articles/global-games-market-reaches-99-6-billion-2016-mobile-generating-37/|title= The Global Games Market Reaches $99.6 Billion in 2016, Mobile Generating 37%|date= April 21, 2016|access-date= June 3, 2016|work= newzoo.com|archive-date= April 7, 2022|archive-url= https://web.archive.org/web/20220407234834/https://newzoo.com/insights/articles/global-games-market-reaches-99-6-billion-2016-mobile-generating-37/|url-status= dead}}</ref><ref name=cnxb>{{cite web|url=http://www.gamespot.com/articles/xbox-one-hits-china-today-following-14-year-consol/1100-6422628/|title=Xbox One Hits China Today Following 14-Year Console Ban|website=[[GameSpot]]|access-date=October 2, 2014|archive-date=October 2, 2014|archive-url=https://web.archive.org/web/20141002152558/http://www.gamespot.com/articles/xbox-one-hits-china-today-following-14-year-consol/1100-6422628/|url-status=live}}</ref> China is also the largest contributor towards [[esports]] in both revenue and in the number of professional players from the country.<ref>{{cite web | url = https://www.gamesindustry.biz/articles/2019-02-12-newzoo-global-esports-market-will-exceed-USD1-billion-in-2019 | title = Newzoo: Global esports market will exceed $1 billion in 2019 | first = Rebekah | last = Valentine | date = February 12, 2019 | access-date = September 24, 2019 | work = [[GamesIndustry.biz]] | archive-date = January 17, 2023 | archive-url = https://web.archive.org/web/20230117221654/https://www.gamesindustry.biz/newzoo-global-esports-market-will-exceed-usd1-billion-in-2019 | url-status = live }}</ref> The industry, like most media in China, is tightly controlled by the government, with strong restrictions on what content may be in games,<ref name="bloomberg aug2018">{{cite web | url = https://www.bloomberg.com/news/articles/2018-08-15/china-is-said-to-freeze-game-approvals-amid-agency-shakeup | title = China Freezes Game Approvals Amid Agency Shakeup | date = August 14, 2018 | access-date = August 15, 2018 | work = [[Bloomberg L.P.]] | archive-date = August 16, 2018 | archive-url = https://archive.today/20180816004754/https://www.bloomberg.com/news/articles/2018-08-15/china-is-said-to-freeze-game-approvals-amid-agency-shakeup | url-status = live }}</ref> and incorporation of anti-addiction measures to limit playtime.<ref>{{cite web | url = https://www.bbc.com/news/world-asia-china-45366468 | title = China targets video gaming to tackle myopia in children | date = August 31, 2018 | access-date = November 6, 2019 | work = [[BBC]] | archive-date = December 10, 2019 | archive-url = https://web.archive.org/web/20191210070437/https://www.bbc.com/news/world-asia-china-45366468 | url-status = live }}</ref> It is home to [[Asia Game Show]], the largest game convention in the world by attendance.<ref>{{cite web |url=http://kotaku.com/5871808/the-worlds-biggest-games-show-isnt-in-germany-not-any-more |title=The World's Biggest Games Show Isn't In Germany. Not Any More. |website=Kotaku |date=December 29, 2011 |access-date=October 2, 2014 |archive-date=August 6, 2018 |archive-url=https://web.archive.org/web/20180806024547/https://kotaku.com/5871808/the-worlds-biggest-games-show-isnt-in-germany-not-any-more |url-status=live }}</ref>

==== Japan ====
{{Main|Video gaming in Japan}}
[[File:Nintendo Headquarters - panoramio.jpg|thumb|right|Headquarters of [[Nintendo]] in [[Kyoto]], Japan, 2006]]
The [[Japan]]ese video game industry is markedly different from the industry in North America, Europe and Australia. Japan initially trailed the United States in entering the video game sector as its companies followed trends set by their American partners, but started to pioneer their own ideas soon after. Several Japanese-developed arcade games, such as ''[[Space Invaders]]'', helped to usher in the [[golden age of arcade video games]] from 1978 to 1982. The 1983 video game crash that affected the North American market did have small but short-term effects in Japan, as most companies involved in the business were well-established and could weather the disruption. [[Nintendo]] took the opportunity to push the [[Nintendo Entertainment System]], a rebranding of its Famicom system, into the Western markets after the crash, implementing technical and business practices to avoid the factors that created the 1983 crash but also secured its control on what games were published for the system. Japan became the dominant home for consoles and console games through the early 2000s, challenged only by the incorporation of large publishers in the West and the [[Xbox]] line of consoles from Microsoft. Nintendo along with companies like [[Sega]], [[Sony Interactive Entertainment]], and [[Capcom]] are dominant leaders in the Japanese video game industry.

<!-- Generally, games have a greater [[market share]] of total entertainment in Japan than in the West.{{Citation needed|date=August 2010}} -->
Nintendo themselves are recognized for having created some of the most positively-reviewed and best-selling video game series such as ''[[Mario]]'', ''[[Donkey Kong]]'', ''[[The Legend of Zelda]]'', ''[[Metroid]]'' and ''[[Pokémon]]''.

<!-- [[Video arcade|Video game arcades]] are still relatively popular in Japan; for every [[arcade game]] released in the US, nine are released in [[Japan]].{{Citation needed|date=February 2007}} The history of the Japanese arcade is very significant in the story of the decline of the American arcade, and in the shape of [[game design]] in general. -->
In recent years, [[video game console|consoles]] and arcade games have both been overtaken by downloadable [[free-to-play]] games on the [[PC game|PC]] and [[Mobile game|mobile]] platforms.<ref name=economist12>{{cite news|title=Japan fights back|url=https://www.economist.com/news/business/21566696-two-japanese-firms-are-challenging-world-new-kind-video-game-japan-fights-back|newspaper=The Economist|date=November 17, 2012|access-date=September 17, 2017|archive-date=July 1, 2017|archive-url=https://web.archive.org/web/20170701155016/http://www.economist.com/news/business/21566696-two-japanese-firms-are-challenging-world-new-kind-video-game-japan-fights-back|url-status=live}}</ref><ref name=capcom_marketdata>{{cite web|title=Market Data|url=http://www.capcom.co.jp/ir/english/business/market.html|publisher=[[Capcom]]|access-date=October 5, 2012|archive-date=November 18, 2015|archive-url=https://web.archive.org/web/20151118011529/http://www.capcom.co.jp/ir/english/business/market.html|url-status=live}}</ref><!-- The structure and culture of a Japanese game developer is different from a western one. Throughout the history of Japanese game design, many developers have seen fit to remain mostly anonymous, even using pseudonyms to a large degree in video game credits.{{Citation needed|date=June 2010}}

Also, the division in labor for video game development is different. For example, Japanese game design teams had a dedicated [[game designer|designer]] (which they called a "director") much earlier than American design teams adopted the practice.{{Citation needed|date=June 2010}}
Secondly, Japanese game designers throughout history generally had far more people working on a particular game than a comparable western design team. For example, ''[[Street Fighter 2]]'' (1992), a Japanese title, had almost one artist working on every character in the game, plus two programmers and a musician, with the result being a team of twenty or more people.  ''[[Mortal Kombat (video game)|Mortal Kombat]]'' (1992), a comparable American title, was developed by four people: a [[game programmer|programmer]], an [[artist]], a [[musician]], and a background artist.{{Citation needed|date=June 2010}} -->

====South Korea====
{{Main|Video gaming in South Korea}}
The video game industry in South Korea generally followed the same early trends as the Japanese market, but players started focusing on massively-multiplayer online games (MMO) and other games that could be played at [[PC bang]]s (Internet cafes). South Korea was one of the first major regions involved in [[esport]]s in the 1990s and 2000s, and today a large number of professional esports players originate from South Korea.

====Bangladesh====
{{Main|Video gaming in Bangladesh}}
Video gaming is a relatively new sector in [[Bangladesh]]. Games have been developed since 2002, mostly independently. However, from 2014, some IT companies have started to develop video games commercially. Some research has been carried out at various universities to improve the video game development sector.<ref>{{Cite web |title="IUB holds 2D game development workshop" |url=http://observerbd.com/details.php?id=15894 |website=Daily Observer. Retrieved 21 June 2014.}}</ref> In 2020, Zero Hour was released on [[Steam (service)|Steam]] in Early Access with the version 1.0 being released on September 9, 2024 and has received positive reviews from gamers. It's a first-person shooter. It is the first game from Bangladesh to be released on the platform.<ref>{{Cite web |date=2020-08-09 |title='Zero Hour' the first Bangladeshi-made online tactical FPS released globally |url=https://archive.dhakatribune.com/feature/2020/08/09/zero-hour-the-first-bangladeshi-made-online-tactical-fps-set-to-release-globally |access-date=2023-05-27 |website=Dhaka Tribune}}</ref>

====India====
{{Main|Video gaming in India}}
Video gaming in India is an emerging market since India is experiencing strong growth in online gaming, making it one of the top gaming markets in the world. Over the past few decades, the Indian gaming industry has gone from close to nonexistent in the 1990s to one of the top markets globally in the late 2010s. In 2019, the [[Online game|online gaming]] market in India was estimated at {{INRConvert|6200|c|lk=c}} with an estimated 300 million gamers, a 41.6% increase from 2018.<ref name=":0">{{cite web|title=KPMG in India's Media and Entertainment report 2019|url=https://assets.kpmg/content/dam/kpmg/in/pdf/2019/08/india-media-entertainment-report-2019.pdf|website=[[KPMG]]|archive-url=https://web.archive.org/web/20191231163356/https://assets.kpmg/content/dam/kpmg/in/pdf/2019/08/india-media-entertainment-report-2019.pdf|archive-date=December 31, 2019|url-status=live}}</ref> As of 2021, it is one of the top five [[Mobile game|mobile gaming]] markets in the world. The industry is projected to reach 510 million gamers by 2022.{{Citation needed|date=December 2021}}

===Others===
==== Africa ====
The video game industry is still in its infancy throughout the African continent, but due to the continent's young population and increasing technological literacy, the sector is growing rapidly. African countries such as [[video gaming in South Africa|South Africa]], [[video gaming in Nigeria|Nigeria]], and [[video gaming in Kenya|Kenya]] have been making rapid advances in [[mobile gaming|mobile game development]], both within their country and internationally,<ref name="Africa top 10">{{cite news|url=http://www.itnewsafrica.com/2013/10/top-10-african-game-developers/|title=Top 10 African game developers|work=[[IT News Africa]]|last=Fripp|first=Charlie|date=October 15, 2013|access-date=August 18, 2015|archive-date=August 3, 2015|archive-url=https://web.archive.org/web/20150803173119/http://www.itnewsafrica.com/2013/10/top-10-african-game-developers/|url-status=live}}</ref> but due to limited funding and a market overcrowded with Western games, success has thus far been minimal.<ref name="Mail & Guardian">{{cite web|url=http://mgafrica.com/article/2014-12-02-things-africa-will-be-famous-for-in-the-next-10-15-years|title=Africa 2030, the next 25 years: From video games, eco-buildings, robotics, and cycling|publisher=[[Mail & Guardian]] Africa|last=Spooner|first=Samantha|date=January 5, 2015|access-date=August 18, 2015|archive-date=September 15, 2015|archive-url=https://web.archive.org/web/20150915083151/http://mgafrica.com/article/2014-12-02-things-africa-will-be-famous-for-in-the-next-10-15-years|url-status=live}}</ref>

====Australia and New Zealand====
{{Main|Video gaming in Australia|Video gaming in New Zealand}}

Australia and New Zealand have an active video game industry, with several standalone developers as well as additional studios from other major developers across the globe.

== Conventions, trade shows, and conferences ==
[[Image:Gamescom 2009 - Koelnmesse Südeingang (5473).jpg|thumb|The [[Gamescom]] in [[Cologne]], the major video game fair by attendance]]
[[File:GDC 2010 expo floor (4427509019).jpg|thumb|The expo floor at the 2010 [[Game Developers Conference]]]]
[[Gaming convention]]s are an important showcase of the industry. These typically provide the means for developers and publishers to demonstrate their games directly to video game players and consumers and obtain feedback. New games are frequently introduced during these events. Some examples of each conventions include the annual [[Gamescom]] in [[Cologne]], and numerous [[PAX (event)|PAX]] events. Some publishers, developers and technology producers also have their own regular conventions, with [[BlizzCon]], [[QuakeCon]], [[Nvision]] and the [[X (Xbox show)|X shows]] being prominent examples.

National trade groups that support their local video game industry often will hold [[trade show]]s aimed for developers and publishers to interact more directly with the video game media, and with retailers and distributors for planning future sales of products. The largest such trade show is the [[Electronic Entertainment Expo|E3]] in Los Angeles, California is held by the [[Entertainment Software Association]]. Other similar trade shows include [[Tokyo Game Show]] (Japan), [[Brasil Game Show]] (Brazil), [[EB Games Expo]] (Australia), [[Russian Game Developers Conference|KRI]] (Russia), [[China Digital Entertainment Expo & Conference|ChinaJoy]] (China) and the annual [[Game Developers Conference]].

The development of video games is also a topic of academic and professional interest, leading to a number of [[Academic conference|conferences]] for developers to share their knowledge with others. Two of the major professional conferences include the [[Game Developers Conference]] (GDC), which holds multiple events through the year but with its main annual conference held in March in San Francisco, and the [[D.I.C.E. Summit]] run by the [[Academy of Interactive Arts & Sciences]] in February of each year at Las Vegas, Nevada.

==Media coverage and archiving==
{{See also|Video game journalism|Video game preservation}}
The coverage of the video game industry started off with several magazines covering the topic, but as the Internet became widely available to support [[new media]], much of the dedicated coverage of the video game industry has transitioned to detected websites, including ''[[Gamasutra]]'', ''[[IGN]]'', ''[[Eurogamer]]'', ''[[Polygon (website)|Polygon]]'' and ''[[GameSpot]]''. More recently, the effect of [[Internet celebrity|social media influencers]], video game players that create online videos or stream themselves playing games through services like [[Twitch (service)|Twitch]], have also become a significant source for coverage of video game news from the consumer point of view.

Another facet of tracking the history of the video game industry is video game preservation, a process that is complicated due to game hardware technology that can become obsolete, dependencies on decommissioned online servers, and issues over [[intellectual property]] that legally restricts preservation efforts. Much of the industry's history prior to the 1983 crash has been lost, as companies affected by the crash simply threw material away, leaving little to recover today. There is better awareness of video game preservation into the 21st century, and several groups and museums have been established to collect and preserve hardware and software for the industry.<ref>{{cite web | url = https://globalnews.ca/news/4383441/retro-game-preservation-in-limbo-after-nintendo-files-lawsuit/ | title = Retro game preservation in limbo after Nintendo files lawsuit | first = Christopher | last = Whan | date = August 12, 2018 | access-date = August 14, 2018 | work = [[Global News]] | archive-date = August 13, 2018 | archive-url = https://web.archive.org/web/20180813110728/https://globalnews.ca/news/4383441/retro-game-preservation-in-limbo-after-nintendo-files-lawsuit/ | url-status = live }}</ref>

==Recognition within the industry==
{{See also|List of video game awards}}
The video game industry has a number of annual award ceremonies, commonly associated with the above conventions, trade shows, and conferences, as well as standalone award shows. Many of the dedicated video game journalism websites also have their own set of awards. Most commonly, these ceremonies are capped by the top prize, the "[[List of Game of the Year awards|Game of the Year]]".

== Trends ==
{{Outdated|date=April 2024}}
Players become fourth-party developers, allowing for more [[Open-source software|open source]] models of [[game design]], development and engineering. Players also create [[Mod (computer gaming)|modifications]] (mods), which in some cases become just as popular as the original game for which they were created. An example of this is the game ''[[Counter-Strike (video game)|Counter-Strike]]'', which began as a mod of the video game ''[[Half-Life (video game)|Half-Life]]'' and eventually became a very successful, published game in its own right.

While this "community of modifiers" may only add up to approximately 1% of a particular game's user base, the number of those involved will grow as more games offer modifying opportunities (such as, by releasing [[source code]]) and the video user base swells. According to Ben Sawyer, as many as 600,000 established online game community developers existed as of 2012. This effectively added a new component to the [[Video game industry#Game industry value chain|game industry value chain]] and if it continues to mature, it will integrate itself into the overall industry.<ref name="newmedia" />

The industry has seen a shift towards games with [[Multiplayer video game|multiplayer]] facilities. A larger percentage of games on all types of platforms include some type of competitive online multiplayer capability.

In addition, the industry is experiencing further significant change driven by convergence, with technology and player comfort being the two primary reasons for this wave of industry convergence. Video games and related content can now be accessed and played on a variety of media, including: cable television, dedicated consoles, handheld devices and smartphones, through social networking sites or through an ISP, through a game developer's website, and online through a game console and/or home or office personal computer. In fact, 12% of U.S. households already make regular use of game consoles for accessing video content provided by online services such as Hulu and Netflix. In 2012, for the first time, entertainment usage passed multiplayer game usage on Xbox, meaning that users spent more time with online video and music services and applications than playing multiplayer games. This rapid type of industry convergence has caused the distinction between video game console and personal computers to disappear. A game console with high-speed microprocessors attached to a television set is, for all intents and purposes, a computer and monitor.<ref>{{cite book|last=Baran |first=Stanley J.|title=Introduction to Mass Communication : Media Literacy and Culture|date=2014|publisher=McGraw-Hill|location=New York|isbn=978-0-07-352621-8|pages=220–221|edition=Eighth}}</ref>

As this distinction has been diminished, players' willingness to play and access content on different platforms has increased. The growing video gamer demographic accounts for this trend, as former president of the Entertainment Software Association Douglas Lowenstein explained at the 10th E3 expo, "Looking ahead, a child born in 1995, E3's inaugural year, will be 19 years old in 2014. And according to Census Bureau data, by the year 2020, there will be 174 million Americans between the ages of 5 and 44. That's 174 million Americans who will have grown up with PlayStations, Xboxes, and GameCubes from their early childhood and teenage years...What this means is that the average gamer will be both older and, given their lifetime familiarity with playing interactive games, more sophisticated and discriminating about the games they play."<ref>{{cite book|last=Baran |first=Stanley J.|title=Introduction to Mass Communication : Media Literacy and Culture|date=2014|publisher=McGraw-Hill|location=New York|isbn=978-0-07-352621-8|page=221|edition=Eighth}}</ref>

Evidence of the increasing player willingness to play video games across a variety of media and different platforms can be seen in the rise of casual gaming on smartphones, tablets, and social networking sites as 92% of all smartphone and tablet owners play games at least once a week, 45% play daily, and industry estimates predict that, by 2016, one-third of all global mobile video game revenue will come from tablets alone.{{Outdated statistic}} Apple's App Store alone has more than 90,000 game apps, a growth of 1,400% since it went online. In addition, game revenues for iOS and Android mobile devices now exceed those of both Nintendo and Sony handheld video game systems combined.<ref>{{cite book|last=Baran |first=Stanley J.|title=Introduction to Mass Communication : Media Literacy and Culture|date=2014|publisher=McGraw-Hill|location=New York|isbn=978-0-07-352621-8|page=222|edition=Eighth}}</ref>

== See also ==
* [[List of video games]]
*[[List of video game websites]]
*[[Hollywood and the video game industry]]

== References ==
{{Reflist|colwidth=30em}}

== Further reading ==
{{Refbegin}}
* {{cite web |last1=Leone |first1=Matt |title=What it costs to run an independent video game store |work=[[Polygon (website)|Polygon]] |date=July 17, 2017 |url=https://www.polygon.com/2017/7/17/15974096/what-it-costs-to-run-an-independent-video-game-store |access-date=July 17, 2017 |archive-date=August 6, 2017 |archive-url=https://web.archive.org/web/20170806114408/https://www.polygon.com/2017/7/17/15974096/what-it-costs-to-run-an-independent-video-game-store |url-status=live }}
{{Refend}}

==External links==
{{Wiktionary}}
{{Commons category|Video game industry}}
*[http://www.igda.org/ International Game Developers Association]
*[https://web.archive.org/web/20120401131657/http://www.fathom.com/course/21701761/index.html Playing the Game: The Economics of the Computer Game Industry] ([[Cambridge University Press]])
*[https://web.archive.org/web/20071107062944/http://www.eurocom.co.uk/content/view/102/81/ Sloperama: Game Biz Advice] (Tom Sloper)

{{Industries}}
{{Authority control}}

[[Category:Video game industry| ]]
[[Category:Economics of the arts and literature]]
[[Category:Entertainment industry]]
[[Category:Mass media industry]]
[[Category:Industries (economics)]]

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