Entertainment & Games Software Industry Profile

Companies in this industry create video games and other entertainment software. Major companies include Activision Blizzard, Electronic Arts, and Microsoft (all based in the US); Bandai Namco, Konami, Nintendo, and SEGA (all based in Japan); Tencent (China); and Ubisoft (France).

Global video game revenue from all channels, including mobile, PC, and console, grew to nearly $140 billion in 2020 amid the pandemic, according to SuperData Research. Key growth drivers include games for mobile devices, virtual reality, and esports (multiplayer competitive video games). Top video game markets include China, the US, and Japan.

The entertainment and games software industry is a subset of the computer software industry, which is covered in a separate industry profile. The US games market, excluding hardware, accounts for about 50% of the global game market generates approximately $40 billion, according to NewZoo.

COMPETITIVE LANDSCAPE

Demand is driven primarily by personal income and gamer demographics. The profitability of individual companies depends on an understanding of consumer needs, timely product development, and effective marketing. Large companies have economies of scale in manufacturing, marketing, distribution, and selling. Small companies can compete successfully by developing creative products.

Computer and video games compete as a leisure-time activity with TV, movies, music, the internet, and other forms of electronic and nonelectronic entertainment.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major entertainment and games software product segments include applications for gaming consoles, handheld devices, and personal computers. Console software is made for dedicated gaming ...