For the last decade, gaming has been untouchable, surpassing the combined global revenue of film and music. It has outpaced global GDP growth, exceeded industry expectations and evolved from a niche hobby into a dominant form of entertainment. Fast-forward to today and it’s taking a soft nose-dive. Gaming in 2025 feels like an industry caught in a loop, where innovation is scarce, trust is low and the profits from social gaming are hiding a deeper existential crisis.
The crash after the boom
Between 2011 and 2021, the revenue from video gaming skyrocketed, growing at double the rate of the previous two decades. Then, in 2022, the market dropped by 3.5 per cent. By 2024, spending had completely stalled. The gaming boom during the pandemic didn’t turn out to be the new normal everyone had hoped for.
What’s surprising is that this slowdown isn’t just a return to pre-pandemic trends, but more of a full contraction. Global gaming spend has dropped 13 per cent since 2021.
Player engagement? Down. Game sales? Stagnant. Even with supply chain issues resolved and a strong release slate, gaming hasn’t rebounded. The lesson? Growth isn’t guaranteed. Industries that depend on compounding network effects can collapse just as quickly as they rise.
The illusion of growth
There’s a glimmer of hope in all this chaos: social gaming. Platforms such as Roblox and Discord have found success by shifting focus from traditional game mechanics to social interaction. Players aren’t necessarily gaming more; they’re just spending time in gaming spaces.
Discord has more than 150 million monthly active users (and it’s not even a game), while Roblox has 400 million monthly active users, with more than half its players aged 13 or older.
But here’s the catch: these platforms are struggling to convert engagement into sustainable profit. Roblox, for instance, loses $35 for every $100 spent by players after paying out to developers and app store fees. It’s a paradox – social gaming might be the future, but it hasn’t figured out a viable long-term business model yet.
For marketers, this raises a key question. Does engagement always translate to revenue? In gaming, we’re seeing that the two don’t always align. The brands that figure out how to convert participation into value will be the ones that win in the long run.
Marketing in a stagnant industry: what now?
So, what can we as marketers and brands learn from gaming’s missteps? Here are a few key takeaways:
Stop chasing the past: audiences crave fresh ideas, not just recycled formulas. Embrace originality and risk-taking. Let go of outdated rules and the need for realism.
A great example is Returnal, a game that transforms trauma into a journey of discovery within an alien world that feels like a fever dream. With each death, progress is erased, but every revelation makes you stronger. A cycle of loss and resilience integrated into the game’s very design.
Trust is everything: once consumers feel exploited, they disengage. Transparency and fair pricing are more important than ever. Making community engagement a priority and building a continuous feedback loop will not only fortify your foundations but will keep your consumers coming back for more.
Engagement does not equal revenue: having an audience doesn’t guarantee profit. Focus on creating meaningful value, not just participation. Non-exploitative monetisation models – such as downloadable expansions and rewarding subscription – are essential. Replay value is also crucial in gaming, driven by achievements, exclusive esports content and endless character personalisation.
Social-first experiences are the future: Gaming’s biggest success stories aren’t traditional games, but actually digital hangouts. Brands need to rethink how they engage audiences in a social-first world. And I don’t mean whatever you thought the Metaverse was.
To effectively engage their audience, brands should focus on fostering social connections and creating shared experiences within gaming platforms. This can be done through a multifaceted approach.
Firstly, incorporating features that encourage communication, collaboration and community building is essential. This could include in-game chat systems, voice chat functionality, social media integration and guild or clan systems that allow players to form groups and work together towards common goals. Additionally, creating digital hangout spaces similar to Discord servers can provide gamers with informal spaces to connect, socialise and build relationships.
Next, brands should rethink gameplay to focus on shared experiences. This could involve designing games that require teamwork and cooperation to succeed, incorporating multiplayer modes that encourage friendly competition and social interaction, or creating multidimensional virtual worlds akin to Roblox, where players can explore, interact and build relationships with one another.
By embracing these strategies and adapting to the evolving dynamics of the gaming industry, brands can position themselves for success in the years ahead. Those that fail to recognise the importance of social interaction and shared experiences risk becoming irrelevant in an increasingly connected and community-driven gaming landscape.
Gaming in 2025 isn’t going anywhere, but it does require many patches and bug fixes. And whether you’re a publisher, a brand, or a marketer, the solution is the same: rebuild, rethink and start innovating again. Otherwise, we risk getting stuck in the loop, too …
By Saad Al Abbassi, Cultural Strategist, VICE Media MEA
