Computer and Video Game Design

Total video game sales in the U.S. reached $57.2 billion in 2023 (up from $56.6 billion in 2022), according to data released by the Entertainment Software Association and Circana (a consumer behavior advisory firm). These organizations say that this total "reflects profits from all video game content categories (physical and digital full-game, downloadable content/microtransactions and subscription spending across console, cloud, mobile, portable, PC and virtual reality platforms), video game hardware and video game accessories."

"Great content is what drives the video game market," said Mat Piscatella, executive director, video games at Circana, in a press release about the sales statistics. "While mobile, console and PC platforms remain the way most people engage with gaming today, new technologies are expanding the ways people can play. The future continues to be very bright."

A wide range of job opportunities are available in the field. Employment of special effects artists and animators in the software industry (a category that includes game designers and developers) is projected to increase by 19.7 percent from 2023 to 2033, according to the U.S. Department of Labor (DOL). This is much faster than the average for all careers. The DOL says that "consumer demand will continue for more realistic video games, movie and television special effects, and three-dimensional movies. Additional special effects artists and animators will be required to meet increased demand for these enhanced visual complexities."

Special effects artists and animators that were employed by software publishers earned mean annual salaries of $123,480 in May 2023, according to the DOL. This is nearly twice the average ($65,470) for all careers.

Here are some major trends in the industry.

Growing Use of Generative Artificial Intelligence

Generative AI (e.g., ChatGPT, Gemini, DALL-E) is a form of machine learning algorithms that can be used in a variety of ways, such as creating new content (including text, simulations, videos, images, audio, and computer code), helping video game developers write code and identify errors more efficiently; analyzing and organizing vast amounts of data and other information; and more quickly identifying solutions to problems. In the gaming industry, generative AI is being used to automate repetitive programming tasks, generate graphics (especially 2D graphics) and content, and meet other goals. But the use of this technology has raised concerns about the quality of the content that it creates, as well as concerns about intellectual property rights and potential job losses for developers and other industry professionals. A 2024 survey from the Game Developer Collective found that developers had mixed opinions regarding generative AI. Thirty percent believed that the use of generative AI would reduce development costs in the next 12 months, while 8 percent believed it would increase costs. But 35 percent believed that its use would make games worse, and only 17 percent believed its use would improve the quality of games.

Newzoo, a provider of PC and console market intelligence data and insights, does not believe that generative AI will have a groundbreaking immediate effect on the industry. "We believe generative AI’s current impact is incremental, as it serves as an accelerator for human creativity and development acumen rather than a full-blown replacement," according to its 2024 Global Games Market Report.

Mobile Games Dominate the Market

The rise of phone- and tablet-based gaming is a major factor in the past decline of consoles. People seem to enjoy the convenience of being able to play games anywhere without being tethered to their television sets or to a dedicated hand-held device. According to Newzoo, mobile gaming dominated the global gaming market in 2023. The category's sales reached $92.6 billion in 2023 (up from $68.5 billion in 2019). The next most-popular categories were console games ($56.1 billion), downloaded/boxed games ($37.1 billion), and browser PC games ($1.9 billion). The global mobile gaming industry is projected to reach more than $118.8 billion by 2027 in sales, according to Statista.com.

Smartphones remain the key growth driver in the segment. While growth in the mobile gaming sector was slowing in more developed markets, including North America, the firm indicated that emerging markets like India and Southeast Asia were fueling growth. Even still, factors such as an uptick in the number of available titles and the advent of faster 5G mobile networks were expected to bode well for mobile games in the coming years.

New Business Models

These new platforms have helped change the business models by which publishers monetize their games, partly because people expect to pay much less for a smartphone app than they would for a console game. Some of these games use advertising for support—not an entirely new practice in games, but one that people are used to seeing in apps for these platforms. The "freemium" game is a fast-growing model: Gamers can enjoy a simplified game at no charge but, once they are hooked, they must pay to unlock the game's more engaging features. Some of these games allow players to purchase virtual objects that they can use within the game.

Cloud-Based Games

Many highly popular games are offered online and are not specific to a given hardware platform. Rather than charge customers to play, these types of games, which pitted multiple competitive shooters against one another amidst a changing landscape, generated revenue from optional purchases made within the game. Fortnite, and other titles like PlayerUnknown’s Battlegrounds (PUBG), had affected the video game industry by taking customers away from paid titles, dealing a blow to some video game producers and their clients. Subscription, cloud-based videogames are extremely popular. Popular cloud gaming subscription services include Amazon Luna, GeForce Now, and Boosteroid.

Downloaded Games

Internet downloads are gaining ground as a way of distributing software. This change is due partly to the rise of mobile platforms, partly to the widespread Internet connectivity of consoles, and partly because the industry wants to discourage the resale of purchased physical media. Downloadable games are sold on media sites such as iTunes and on specialized gamer sites. According to Statista.com, game downloads generated $14.7 billion in revenue in 2019. It predicts that revenue in the global download games sector is expected to grow at a compound annual rate of 5.76 percent from 2024 through 2027. Revenue is expected to grow from $21.47 billion in 2024 to $25.4 billion in 2027. Distribution by download has increased the opportunities for independent game producers to find a market and will enrich the industry with original game ideas. Some indie producers are using crowdfunding Web sites such as Kickstarter and ArtistShare to raise the funds necessary to turn a good idea into a finished, marketable game.