Global Video Game Market Forecast to Hit $593B
The global video game market is projected to exceed $593 billion by 2031, according to a report from Mordor Intelligence. The growth is reportedly fueled by mobile gaming adoption, AI-driven development, and the expansion of cloud gaming, which is expected to grow at a 26% compound annual growth rate. Significant investment in the Asia-Pacific region is also cited as a key driver.
- Generative AI is significantly accelerating animation workflows, allowing smaller studios to automate repetitive tasks like in-betweening, lip-syncing, and background generation, thus enabling them to compete with larger players. - Animation studios are increasingly using platforms like Roblox and YouTube to test new characters and story concepts, gathering real-time audience data before committing to the high cost of a full series production. - Toy companies like Hasbro and Mattel are aggressively acquiring animation studios and digital game developers to create a pipeline of new IP and extend physical play into virtual worlds as children move to digital entertainment at younger ages. - The American Academy of Pediatrics recommends limiting screen time to one hour per day of high-quality programming for children aged 2 to 5, a guideline that shapes content discovery on parent-focused platforms. - Apple’s Vision Pro is being explored for immersive and interactive educational content, allowing for virtual field trips and hands-on learning with 3D models, which could represent a new frontier for kids' entertainment. - As of September 2025, Roblox is beta-testing a new feature called "Moments" that allows users 13 and older to capture, edit, and share 30-second videos on the platform, directly competing with YouTube for user-generated gameplay content. - Strategic buyers are active, with Scholastic investing $186 million in 9 Story Media Group to expand its IP across print and screen, highlighting a trend of established kids' brands acquiring production and distribution capabilities. - Global demand for preschool content grew by 25% in the last year, with school-aged kids' content close behind at 21%, driven by the reliability of these programs for parents and their ability to travel across international markets.
