Is the Video Game Industry Bigger Than the Movie Industry?

In recent years, the video game sector has experienced remarkable growth, showcasing its undeniable profitability. Surprisingly, its financial prowess outshines that of other entertainment sectors. Recent statistics reveal that the video game industry's earnings surpass the combined revenues of both the music and film industries.

Mordor Intelligence's findings indicate that the global gaming market reached a valuation of USD 272,86 billion in 2024. This encompasses earnings from various platforms such as consoles, PCs, mobile devices, and esports. To contextualize this figure, the music industry garnered USD 30,70 billion in the same year, while the movie industry amassed USD 81,64 billion.

That means the gaming industry generates nine times more revenue than the music industry and almost three times more than the movie industry. Top video games now surpass even the most lucrative blockbuster. Looking into the numbers, The Grand Theft Auto V, Red Dead Redemption Two, FallOut 4, and the Call of Duty series. When delving into the statistics, it becomes evident.

For instance, Marketwatch reports that Grand Theft Auto V has generated over USD 6 billion in revenue. To put this into perspective, consider Avatar, the highest-grossing movie of all time, which earned USD 2.93 billion. So, what are the factors fueling this great success? Discover more through the article below!

Why is The Video Game Industry So Popular and Profitable?

Below are several factors contributing to the rapid growth of the video game industry:

1. People Love Playing Video Games

Numerous factors contribute to the widespread enjoyment of gaming. Games offer entertainment, relaxation, and opportunities for socializing. Additionally, they serve as valuable tools for acquiring new skills and enhancing problem-solving capabilities. Furthermore, the imposition of COVID-19 lockdowns has contributed to a 20% increase in global game sales, reaching nearly $180 billion in 2020. This trend is expected to persist into 2021, bolstered by the launch of the latest PlayStation and Xbox consoles. Numerous gamers find solace in gaming for their mental well-being amidst lockdowns. According to a survey conducted among European gamers, 16% shared this perspective, particularly highlighting the positive impact experienced by those immersing themselves in multiplayer gaming sessions.

2. Increasing Accessibility

The soaring success of the video game industry can be primarily attributed to the growing trend of mobile gaming. In 2024, mobile games dominated over half of the worldwide gaming market, amassing a staggering USD 100,54 billion in revenue. The proliferation of smartphones, tablets, virtual reality (VR), augmented reality (AR), cloud gaming, and 5G networks has facilitated convenient access to gaming, while the widespread availability of high-speed internet has enabled mobile games to evolve into more intricate and captivating experiences. Additionally, the emergence of online gaming platforms and esports has fostered a sense of community and rivalry among gamers, further enticing individuals to partake in this leisure pursuit. Given these favorable circumstances, it is hardly surprising that the gaming industry is experiencing exponential growth.

3. Expansion into New Markets

The gaming industry has expanded its reach by tapping into emerging markets such as esports and game streaming, captivating a previously untapped audience. Esports, in particular, has garnered immense popularity among both gamers and non-gamers, attracting millions of viewers and establishing professional leagues and competitions. Moreover, the advent of streaming platforms like Twitch has simplified the process of sharing gaming experiences and engaging with fellow enthusiasts in real time. These pioneering advancements within the gaming sphere have fueled the industry's rapid expansion and indicate continued growth in the future.

4. Games Allow People to Interact with Each Other

The landscape of the video game industry has evolved into a communal endeavor. The proliferation of social media and streaming platforms has provided gamers with an avenue to interact, exchange experiences, and forge communities centered on shared interests. This social dimension of gaming has played a significant role in its expansion, as players actively seek opportunities to connect with others and establish supportive communities.

5. Monetization in Gaming

Effective monetization stands as a pivotal factor for the prosperity of any gaming enterprise. While game development and distribution hold significance, the ability to generate revenue is paramount for long-term viability. Various monetization tactics are prevalent within the gaming sector.

Among these, the free-to-play model is widely embraced, offering the game at no cost while enabling players to make in-app purchases for enhanced features or virtual items. This approach fosters a broad player base, promotes engagement, and simultaneously generates income. Another prevalent strategy is the subscription model, wherein players pay a recurring fee for access to the game's content.

This model ensures a consistent revenue stream and proves particularly efficacious for massively multiplayer online games (MMOs). Moreover, advertising and sponsorship arrangements serve as additional avenues for revenue generation, especially prevalent in mobile gaming platforms.

6. Increasing Popularity of E-Sports

In recent times, e-sports has emerged as a significant facet of the gaming sector. E-sports denotes competitive gaming, wherein professional gamers vie in structured competitions for monetary rewards. The surge in esports' popularity is evident, with millions of viewers tuning in to spectate tournaments and championships. Presently, the esports industry boasts a valuation of USD 4.3 billion in 2024, with projections indicating further growth in the ensuing years.

The proliferation of streaming platforms such as Twitch and YouTube has facilitated easier access to e-sports events, while the increasing prevalence of e-sports leagues and tournaments has expanded opportunities for participation.

This phenomenon has opened up numerous avenues for businesses to engage with e-sports, whether through sponsorship agreements, event coordination, or team management. Successfully navigating the e-sports landscape demands a profound comprehension of the gaming community and the ability to curate compelling experiences for both players and spectators.

7. An Entertaining Story

Some of the best and most beloved games of all time are remembered for their narrative prowess. Humans inherently gravitate towards being moved, entertained, and inspired by captivating stories featuring memorable characters, plot twists, and other elements. Given the interactive nature of games, they uniquely serve as a storytelling platform unparalleled by any other medium. The Mass Effect series serves as a prime illustration of games renowned for their compelling storylines, which captivate players and leave them eagerly anticipating the unfolding narrative.

The Top 9 Highest-Selling Games of All Time

The video game that sold the most units topped sales charts and gave rise to eagerly awaited media adaptations, including the ones listed below.

9. The Witcher 3, The Most Stunning Visual in the Video Game Industry

• Initial Release Date: May 18, 2015
• Platforms: PS5, Xbox Series XS, PS4, Xbox One, Switch, PC
• IGN’s Review Score: 9.3

Source: YouTube /The Witcher In May 2023, The Witcher 3 joined the ranks of top-selling games as CD Projekt Red disclosed that its groundbreaking RPG had surpassed 50 million copies sold and garnered over 200 Game of the Year awards. Combined sales for The Witcher series now exceed 75 million units.

The developer is presently engaged in the development of various new Witcher titles, including The Witcher 4 and a remake of the original Witcher game. Its captivating gameplay, narrative depth, immersive world design, engaging combat mechanics, and impressive visuals have cemented its status as one of the best-selling video games.

8. Overwatch, The Brilliant Game Design in the Gaming Industry

• Initial Release Date: May 24, 2016
• Platforms: PS4, Xbox One, Switch, PC
• IGN’s Review Score: 10

Source: Youtube / PlayOverwatch

According to a report by Bloomberg released in April 2022, Blizzard's hero shooter Overwatch achieved sales of 50 million copies. Renowned for its exceptional game design, meticulously designed characters, and ongoing support for esports, Overwatch has significantly elevated the hero shooter genre. Additionally, it boasts a consistent monthly player count averaging 23.5 million.

7. Red Dead Redemption 2, One of The Highest-Rated Video Games

• Initial Release Date: October 26, 2018
• Platforms: PS4, Xbox One, PC
• IGN’s Review Score: 10

Source: YouTube / Rockstar Games Having sold more than 57 million copies across multiple platforms, this game has garnered numerous Game of the Year accolades. It ranks among the top-rated games on Metacritic, PlayStation 4, and Xbox One platforms.

6. Mario Kart 8 Deluxe, The Fattest Top-Selling in the Video Game Industry

• Initial Release Date: May 29, 2014
• Platforms: Switch, Wii U
• IGN’s Review Score: 9.3

Source: YouTube / Nintendo of America This stands as one of the most successful video games ever released for the Wii platform. It achieved initial sales of 1.2 million copies within the first four days of its launch and has since sold a total of 65.47 million units worldwide.

5. PUBG, The Most Popular Battle Royale Game

• Initial Release Date: March 23, 2017
• Platforms: PS5, PS4, Xbox Series XS, Xbox One, PC, Stadia
• IGN’s Review Score: 9.5

Source: YouTube / Yakis Considering its significant contribution to the increasing prominence of battle royale games in the last five years, it comes as no surprise that PUBG has achieved remarkable commercial success. According to Krafton creative director Dave Curd, PUBG has sold 75 million copies as of December 2021. Additionally, PUBG has garnered numerous 'Game of the Year' nominations.

4. Wii Sports, The Top-Selling Single Platform in the Video Game Industry

• Initial Release Date: November 19, 2006
• Platform: Wii
• IGN’s Review Score: 7.5

Source: YouTube / CaseOh Exceeding sales of 82.9 million units (according to Nintendo’s official), this game secures its place among the highest-selling video games for the Wii platform. Its utilization of motion sensor-equipped controllers solidifies its appeal, particularly among fitness and sports enthusiasts.

3. Grand Theft Auto 5, The Best PC Game of All Time

• Initial Release Date: September 17, 2013
• Platforms: PS5, PS4, PS3, Xbox Series XS, Xbox One, Xbox 360, PC
• IGN’s Review Score: 10

Source: YouTube / GameClips

Grand Theft Auto 5 holds the title for the highest sales among games exclusively available on consoles or PCs (unlike the top two entries, which also have versions for mobile platforms). With 190 million copies of GTA V have been sold, solidifying its status as one of the most beloved action-adventure games in history. Additionally, it holds the distinction of being the most costly video game ever produced, boasting a budget of $265 million.

2. Minecraft, The Most Attractive Game

• Initial Release Date: May 17, 2009
• Platforms: Xbox (One and 360), PS4, PS3, PS Vita, Switch, Wii U, PC, VR, Mobile, Others
• IGN’s Review Score: 9

Source: YouTube / Minecraft

Minecraft is the top-selling video game ever, boasting over 300 million copies sold and a player base exceeding 172 million active users. Players around the world enthusiasts have the opportunity to create online communities and engage in collaborative gameplay. Moreover, the widespread popularity of the game has led to the creation of merchandise like t-shirts and character plush toys. In 2021, Minecraft-related content on YouTube surpassed 1 trillion views, solidifying its status as the platform's most popular game. Its open-ended gameplay appeals to individuals from various demographics, enabling them to unleash their creativity through the creation of complex structures, landscapes, or entire virtual realms constructed from blocks. Furthermore, Minecraft is recognized as the highest-grossing video game in existence and is slated for a theatrical release of its live-action film in 2025.

1. Tetris, The Most Timeless Video Game Ever Created

• Initial Release Date: June 6, 1984
• Platforms: Most
• IGN’s Review Score: 9

Source: YouTube / BestGamesVK Regarded by many as the ultimate timeless video game, Tetris claims the pinnacle of all-time bestseller lists with a staggering 520 million copies sold, as reported by The Tetris Company. This figure encompasses sales across various platforms, with a significant portion originating from mobile platforms (as per Henk Rogers, Managing Director of The Tetris Company, citing 425 million paid mobile downloads as of 2014). Originally introduced for the Elektronika 60 computer developed in the Soviet Union, Tetris has been adapted for over 50 different platforms since its inception. Notably, its release played a pivotal role in catapulting the Game Boy to success, ultimately selling 35 million copies on Nintendo's handheld console.

Final Thoughts

In conclusion, the video game industry is larger than the film industry, even surpassing the combined size of the film and music industries. This is because the gaming industry is incredibly diverse compared to most other entertainment sectors, with various segments (such as PC and console gaming, arcade, mobile, streaming services, and even eSports) contributing to its overall growth.