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PwC Forecasts U.S. Video Game Market to Hit $87.4B by 2029, Driven by Mobile Ads and GTA 6 Launch

Animated woman with a shopping cart overlaps "Grand Theft Auto" art featuring two people and a car. Vibrant sunset and palm trees in background.
GTA 6 (Credit: Rockstar Games)

The U.S. video game and esports market generated $62.8 billion in 2024 and is projected to reach $87.4 billion by 2029, according to PwC’s latest annual report (via GameBeat). That translates to a healthy 6.8% compound annual growth rate (CAGR) over the next five years, marking a steady rebound after a 2.8% decline in 2023.


PwC predicts the biggest single-year jump will come in 2026, with an 11.5% surge — a clear nod to the expected launch of Grand Theft Auto 6 (GTA 6). Analysts estimate the title could retail for as much as $100, potentially adding $3 billion to that year’s total. The delay from 2025 to 2026, PwC notes, likely shifted $2.7 billion in revenue and impacted console sales by roughly 700,000 units.


While nearly every segment is set for growth, the report highlights two exceptions: browser-based casual games (-7.9% CAGR) and boxed PC game sales (-48% CAGR).


The biggest winner? In-game mobile advertising, expected to jump from $19.4 billion in 2024 to $35.2 billion by 2029 — a robust 12.7% CAGR.


Social and casual gaming remains the U.S. market’s powerhouse, generating $37.5 billion in 2024 (over 60% of total revenue) and projected to hit $57.2 billion by 2029. Titles like Roblox, MONOPOLY GO!, Candy Crush Saga, and Clash of Clans dominate, with in-app advertising playing a bigger role than ever.


On the traditional side, the PC and console market was valued at $23.1 billion in 2024, expected to grow modestly to $27.7 billion by 2029. However, the sector saw challenges last year, with console revenue dropping 3% and physical/digital sales struggling against rising game prices and competition from subscription services. Some publishers, like Ubisoft and Square Enix, saw underwhelming returns on $70 titles, while lower-priced hits such as Helldivers 2 and Black Myth: Wukong outperformed expectations.


Subscription gaming, valued at $6.6 billion in 2024, is projected to reach $9.9 billion by 2029. Services like Xbox Game Pass and PlayStation Plus are expected to attract more than 76 million U.S. subscribers by the end of the forecast period.


Esports, though comparatively small at $523 million in 2024, is set to grow to $689 million by 2029. Sponsorship growth is modest, but media rights revenue is on track to overtake it by 2028, supported by rising event ticket sales.


Technology could be another major growth catalyst. PwC estimates AI-driven efficiencies could cut game development costs by 30%, with applications in testing, LiveOps, and personalized player engagement. This shift could help publishers rebound from recent layoffs, studio closures, and project cancellations.

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