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WTF Is Happening To The Video Game Industry?

WTF Is Happening To The Video Game Industry?

How Money Works · 274,946 · 2026-07-31

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Thanks to Monarch for partnering with me! Start your free trial and get 50% off your first year of total money clarity using my link https://monarchmoney.yt.link/DIRMRBV or code hmw50 for 50% Off Monarch Core tier. ----- Smoothie King's Video: https://youtu.be/8f1o9-AMau8?si=_BWQiHzdCDH4D_11 ------ Sign up for our FREE newsletter! - https://www.compoundeddaily.com/ Books we recommend - https://www.howmoneyworkslibrary.com/ Listen on Spotify - https://open.spotify.com/show/5gi1JobDJC3QqaF4aKfenR?si=f3IsgWIlSKObF8BT1Fitig ----- My Other Channel: @howhistoryworks Edited By: Svibe Multimedia Studio Music Courtesy of: Epidemic Sound Select Footage Courtesy of: Getty Images 📩 Business Inquiries ➡️ sponsors@worksmedia.group Sign up for our newsletter https://compoundeddaily.com 👈 All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind. #business #finance #money ------ https://variety.com/2026/gaming/news/americans-play-video-games-hour-per-week-1236765544/ https://www.visualcapitalist.com/wp-content/uploads/2023/08/Datastream-03-Leveling-Up-to-300-Billion-and-Beyond-Main-graphic-Aug-15-2.jpg https://news.xbox.com/en-us/2026/07/06/resetting-xbox/ https://thatparkplace.com/ubisoft-bankruptcy/ https://www.pcgamer.com/gaming-industry/ubisoft-closes-another-2-studios-lays-off-hundreds-more-employees/ https://edition.cnn.com/2026/07/06/tech/microsoft-layoffs-xbox https://www.reuters.com/technology/unity-software-cutting-25-staff-company-reset-continuation-2024-01-08/ https://www.statista.com/outlook/amo/media/games/worldwide?currency=USD/#revenue https://www.pcgamer.com/gaming-industry/epic-games-lays-off-more-than-1-000-employees-were-spending-significantly-more-than-were-making-ceo-tim-sweeney-says/ https://pressf.ticker.io/ https://www.polygon.com/xbox-game-pass-lost-millions-players-price-increases/ https://www.techspot.com/news/112906-third-xbox-price-hike-15-months-raises-all.html https://www.nytimes.com/2025/09/29/business/dealbook/electronic-arts-buyout-jared-kushner.html https://variety.com/2025/gaming/global/electronic-arts-goes-private-55-billion-deal-1236533827/ https://finance.yahoo.com/markets/stocks/articles/2-billion-mess-saw-thousands-175713470.html https://finance.yahoo.com/markets/stocks/articles/embracer-group-cuts-itself-pieces-142935980.html http://statista.com/statistics/552623/number-games-released-steam/?srsltid=AfmBOooD_pFEMRGcAAHDdWmovKeaAvzxS8ZazWIfMBjMVa8gmoIkHVAS https://www.resetera.com/threads/sky-news-the-rise-of-forever-games-and-the-battle-for-consumer-culture.1001460/ https://resources.newzoo.com/hubfs/Free%20Reports/PC%20and%20Console%20Report/2025_Newzoo_The%20PC%20and%20Console%20Gaming%20Report%202025.pdf https://www.gamedeveloper.com/business/five-takeaways-for-game-developers-from-matthew-ball-s-state-of-gaming-data https://www.digitallydownloaded.net/2023/05/sony-appears-to-be-struggling-to-sell-70-games-this-is-an-issue-of-quality-not-price.html https://www.forbes.com/sites/paultassi/2024/09/21/new-report-says-sonys-concord-cost-400-million-to-make/ https://www.zillow.com/news/zillow-launches-zillow-for-warcraft-a-new-way-to-explore-world-of-warcraft-homes/ https://www.ign.com/articles/concords-initial-development-deal-was-200-million-but-it-wound-up-costing-sony-much-more-report https://www.tomsguide.com/news/live/sony-acquires-bungie-36-billion https://www.forbes.com/sites/paultassi/2026/03/14/destiny-2-has-lost-91-of-players-since-edge-of-fate-97-from-final-shape/ https://tech-insider.org/sony-bungie-writedown-765-million-2026/ https://finance.yahoo.com/news/sony-finally-admits-bungie-acquisition-130601290.html https://howtomarketagame.com/2023/09/28/the-missing-middle-in-game-development/ https://www.pcgamer.com/games/action/peak-dev-would-rather-you-pirate-peak-than-play-a-microtransaction-roblox-slop-ripoff/ ----- Depending on what you actually count as a “video game” the industry is now generating somewhere between 200 and 350 billion dollars a year in annual revenue, making it by far the largest entertainment sector in the world regardless of whatever your exact definitions may be. More people are playing video games than ever before, they are playing them for longer, and (the not so secret reality is that) video game companies have gotten a lot better at getting money out of them while they are. Over what should have been the best half decade in the history of the industry, the overall market is down by as much as 30% from its peak, in the same time that the broader market has more than doubled. Sooo how is it possible that even with record sales, record new revenue streams, record numbers of new players, and record new opportunities to monetize that new audience… video game companies have still managed to screw this up so badly?

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