Discussion in a Webinar on the Games Industry: Ten Key Inquiries and Responses Regarding Its Future in 2025
The gaming industry is gearing up for a significant transformation, with AI set to play a pivotal role, as revealed during a recent Omdia webinar. Held on Tuesday, March 11, 2025, the event aimed to prepare for the Game Developers Conference (GDC) 2025 and answer pressing questions facing the industry in the coming year.
According to Omdia's team of expert games analysts, the gaming industry is expected to continue its growth trajectory, with global revenues projected to approach $200 billion in 2025. This figure is larger than both the film and music industries combined, and digital distribution now dominates 95% of game sales. Cloud platforms, which form a $12.9 billion technology ecosystem, are central to the industry's continued evolution and resilience. This cloud-enabled ecosystem is forecasted to grow to $20.9 billion by 2029.
One of the key topics discussed during the webinar was the impact of Switch 2, a new console in the Switch series, on the console and handheld landscape. While specific analysis on Switch 2’s precise impact was not detailed in the reports available, the current market trends indicate that hybrid console-handheld devices remain relevant. The sustained growth and evolution of the console market, combined with cloud gaming and mobile trends, suggest devices like the Switch 2 will play an important role in shaping the future console and handheld landscape by blending traditional gaming forms with emerging trends.
Another important discussion point was the role of AI in the games value chain. Omdia's introduction of an AI & machine learning category in its 2025 vendor assessment highlights the increasing importance of AI support in cloud platforms for game development and operations. AI applications are poised to transform the games technology landscape, driving key growth in cloud-enabled operational solutions. AI is expected to be a major growth driver in the gaming industry’s technology stack, empowering everything from backend tooling and analytics to LiveOps and new gameplay innovations.
However, the specific areas where AI will have the biggest impact in the games value chain were not specified during the webinar.
One of the questions discussed was whether the games industry will survive in 2025. The analysts’ consensus was that the industry is robust and continuing to grow, with the potential for significant advancements through technological innovation such as AI and cloud platforms.
In summary, Omdia analysts see the gaming industry as not only surviving but thriving into 2025 and beyond, with cloud platforms and AI central to that trajectory. The impact of Switch 2 on consoles and handhelds aligns with ongoing industry trends, though specific analysis on that device was not detailed in the reports available. The role of AI in the games value chain is expected to be transformative, though the specific areas of impact were not specified during the webinar. These insights provide a valuable perspective for stakeholders in the gaming industry as they prepare for the future.
- As the gaming industry prepares for its future, the influence of AI is anticipated to expand beyond just gameplay innovations, also impacting backend tooling, analytics, and LiveOps.
- Social-media platforms and entertainment forums will undoubtedly witness an uptick in discussions about the latest gadgets and technological advancements in the gaming world, as the industry continues to evolve with artificial intelligence and cloud platforms.
