McKinsey identifies new growth opportunities for the gaming industry
The gaming industry is entering a new phase of growth in which publishers, platforms and partners will need to find better ways to turn players’ attention into commercial value, according to a new analysis by McKinsey.
Gaming stands out
Gaming stands out among digital media for the quality of attention it captures. Around 75% of PC and console players and 55% of mobile players report being highly focused while gaming. This gives gaming the highest value per hour among digital media, at $1.50 for PC and console and $0.46 for mobile.
Gap between player engagement and the industry’s ability to monetize that attention
However, McKinsey identifies a gap between the level of player engagement and the industry’s ability to monetize that attention. Its research shows that a 10% increase in consumer focus is associated with a 17% increase in spending, suggesting significant untapped potential for gaming companies.
Worth of global gaming market
The global gaming market, which McKinsey estimates at around $360 billion, is expected to grow by approximately 5% annually through 2030. The report highlights several trends that could shape this next phase, including advertising, live-service gaming, transmedia intellectual property and generative AI.
Advertising: one of the largest opportunities
Advertising represents one of the largest opportunities. While advertising accounts for around half of mobile gaming revenue, it represents only about 4% of revenue on PC and console. McKinsey notes that 76% of PC and console players are receptive to in-game advertising, indicating that carefully integrated formats could create additional revenue without disrupting gameplay.
The report also highlights the importance of understanding different player groups. Two particularly valuable segments are “content lovers”, who are attracted to established worlds and premium experiences, and “interactivity enthusiasts”, who value competition, social interaction and community. Both groups can contribute significantly to engagement, spending and the discovery of new games.
Live-service gaming
Live-service gaming is expected to remain another major source of growth, accounting for an estimated 70% of incremental gaming revenue through 2030. At the same time, studios face growing challenges in maintaining player interest as audiences become more demanding and “battle pass fatigue” increases.
Growing role of established intellectual property
McKinsey also points to the growing role of established intellectual property across games, film, television and other media. Successful transmedia strategies can extend the lifespan and value of franchises by allowing audiences to engage with familiar characters and worlds across multiple formats.
Generative AI
Generative AI is another area with significant potential. Around 87% of developers already use generative AI for tasks such as automation and reducing production costs. At the same time, the technology could eventually enable more adaptive worlds, personalized experiences and greater player participation in content creation.
Future success in gaming
Overall, McKinsey argues that future success in gaming will depend less on simply producing more content and more on developing capabilities that allow studios to better understand players, strengthen engagement and convert high-quality attention into sustainable commercial growth.
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