By Damian Martinez, journalist at G&M News.
The United States (U.S.) video game industry is expected to rebound in 2025 following a difficult 2024. The report called Future of Video Games, developed by Circana, projects growth for the market in the next year, driven in part by the expected launches of a new hardware platform from Nintendo along with the highly anticipated release of Grand Theft Auto VI, among other factors.
After decades of nearly uninterrupted advancement in player count and engagement, the video game market matured during 2020 and 2021. This shift was driven by consumers who turned to gaming for not only entertainment, but also to stay connected with family and friends. Today, the number of people playing video games, and the time they dedicate to gaming, continue to trail the all-time highs set in 2021, while higher prices in everyday spending categories and the return to experiential spending have provided challenges in making more time and dollars available for his activity.
In 2024, video game hardware revenue is expected to decline in both average prices and units sold. However, many players have looked to more easily accessible platforms such as PCs and mobile devices, which has helped offset some of the console-related declines. An emerging and exciting area of video game hardware to watch closely is PC portable gaming systems like Steam Deck.
Following the trend of physical media diminishing, publishers will continue to increase focus on the digital delivery of content and services. While Nintendo is expected to support physical software for its new console in 2025, the future of physical software on the next Sony and Microsoft platforms is far less certain.
In accessories, gamepads, headsets and headphones will continue to drive sales in 2024, with growth in average prices helping to offset a decay in units sold. Gamepads will see a boost from a variety of price points, colors, and themes while consumers refresh headsets purchased three or four years ago. There has also been some recent success with the new remote-play device segment, which includes PlayStation Portal, providing a small but encouraging lift to the accessories market.
Introducing the players segments
According to the US Gamer Segmentation report made by Circana, there are six segments that represent the dominant play and spending behaviors of the country’s video gamers: Super Gamers (super invested and super engaged, the broadest and deepest gamers on the market), Console Warriors (they keep up with the latest trends and enjoy action packed multiplayer experiences), Transitionals (adult gamers with a preferences for more flexible gaming platforms), Easy Accessors (younger gamers whose platform access is limited, leading them to play primarily on mobile), Daily Dabblers (older gamers who regularly play familiar casual games on PC and/or mobile), and Incidental Players (non-gamers who play mobile games because they provide another way to use their device).
Of the total gamers in the United States, the study determined that 14% are Super Gamers, 15% are Console Warriors, 15% are Transitionals, 16% are Easy Accessors, 14% are Daily Dabblers, and 23% are Incidental Players. The document also revealed that, from 2018 to 2024, gaming engagement decreased slightly overall, with a shift away from Daily Dabblers and Incidental Players towards Super Gamers and Transitionals.
The decline in gamers across the population since 2022 has been consistent across all age groups, but investment in time and spent are up across most segments. Teens and Young Adults are the most valuable by dollar spend and time played.
Market overview
The study indicates 71% of U.S. consumers play video games. The total number of gamers is 236.4 million. They spend an average of 15 hours per week playing video games and have dedicated an average of USD 56.20 on video game purchases in the past six months.
Mobile remains the largest platform with 65% of consumers in the country engaging in mobile gaming in 2024. Along with the console category, it experienced no point change from 2022. While more than 1/3 of gamers still play on PC, PC gaming has declined by 4% since 2022. Other gaming devices have grown 2% since 2022 due to further adoption of Virtual Reality (VR).
Also, gaming time is up across all platforms, but especially on consoles. Gamers spend an average of 15 hours a week playing video games (across mobile, PC, and console), which is 1.8 hours more than in 2022. Mobile gamers play an average of 8.1 hours per week, which is 1.1 hours more than in 2022, meanwhile, console gamers play an average of 10.2 hours per week, which is 1.9 hours more than in 2022.
Super Gamers, the industry’s most valuable consumers
Deeply invested in gaming, these players enjoy themselves heavily across multiple platforms and spend significant amounts of money on their gaming hobby. Their interest in games extends beyond playing to include broader games media/culture, video game streaming, and Esports.
They are teens to younger adult males (18 to 34), who enjoy a broad range of experiences and tailor their play to platform strengths. These gamers are strongly motivated by goals, such as becoming more powerful and completing all content’s challenges.
Super Gamers play immersive experiences such as RPGs, Action Builders, and Strategy/Simulation. They like the platform’s customizability both in hardware and input options, participate in action-oriented experiences such as Action, Shooters, and Fighting and enjoy playing console due to exclusive games and casual room setting.