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Video Games Software Developers in the US Industry Data and Analysis
Over the past several years, the industry has experienced steady growth, driven by the release of major titles backed by sizable investments. These large budgets have allowed studios to pursue increasingly ambitious projects but have also heightened their reliance on publishers, many of whom have consolidated their influence through acquisitions. While publisher backing provides essential funding, it also pressures developers to deliver high-impact releases that maximize commercial potential. This dynamic has pushed development costs higher, increasing the risk of employee burnout and periods of intense overtime. In response, studios are adopting cost-saving measures such as integrating artificial intelligence tools to streamline production and cut expenses. The ongoing trend of developing games tied to established intellectual properties has consistently generated strong initial sales. Still, these gains are tempered by the hefty licensing and revenue-sharing agreements accompanying such arrangements.
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What's included in this industry analysis
IBISWorld's research coverage on the Video Games Software Developers industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released August 2025.
About this industry
What's this industry report about?
The Video Games Software Developers industry in the United States operates under the NAICS industry code OD4570. This sector mainly makes video game software for viable platforms, but this industry does not count any publishing-related industry activity. Such activities are included in IBISWorld report 51121e—Video Game Software Publishers, but they are not fundamentally different. Related terms covered in the Video Games Software Developers industry in the United States include second-party developer, third-party developer, first-party developer, video game console and downloadable content (dlc).
What's included in this industry?
Products and services covered in Video Games Software Developers industry in the United States include Action games (adventure and shooter) games, Strategy & RPG games and Sports (pro sports, racing and fighting) games.
What companies are included in this industry?
The Video Games Software Developers industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Video Games Software Developers industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Video Games Software Developers industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Video Games Software Developers industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Video Games Software Developers industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Video Games Software Developers industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Video Games Software Developers industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Video Games Software Developers industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Video Games Software Developers industry in the United States.
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Frequently Asked Questions
What is the market size of the Video Games Software Developers industry in the United States in 2026?
The market size of the Video Games Software Developers industry in the United States is $32.9bn in 2026.
How many businesses are there in the Video Games Software Developers industry in the United States in 2025?
There are 16,462 businesses in the Video Games Software Developers industry in the United States, which has grown at a CAGR of 3.5 % between 2020 and 2025.
How may import tariffs affect the Video Games Software Developers industry in the United States?
The Video Games Software Developers industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Video Games Software Developers industry in the United States?
The Video Games Software Developers industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Video Games Software Developers industry in the United States grown or declined over the past 5 years?
The market size of the Video Games Software Developers industry in the United States has been growing at a CAGR of 2.5 % between 2020 and 2025.
What is the forecast growth of the Video Games Software Developers industry in the United States over the next 5 years?
Over the next five years, the Video Games Software Developers industry in the United States is expected to grow.
What does the Video Games Software Developers industry in the United States include?
Video game development for video game consoles and Video game development for mobile applications are part of the Video Games Software Developers industry in the United States.
How competitive is the Video Games Software Developers industry in the United States?
The level of competition is moderate and increasing in the Video Games Software Developers industry in the United States.
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