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Software and technology

‘Video games are a powerful cultural force’: report

June 5, 2025

The interactive medium could prove to be a lucrative tool for the luxury sector. Image credit: ESA New findings from the Entertainment Software Association detail how the gaming industry is shaping culture, as luxury brands increasingly explore the space. Image credit: ESA

 

Gaming is reaching a fever pitch among U.S. audiences.

Nearly two-thirds of Americans ages 5 to 90 are playing games on a regular basis, amounting to 205.1 million individuals, according to an annual report from the Entertainment Software Association (ESA). The trade organization’s findings paint a picture of how the industry is shaping culture, as luxury brands increasingly explore the space.

“Video games are universally appealing to every demographic,” said Stanley Pierre-Louis, president and CEO of the ESA.

"Due to their popularity, as well as the variety of genres and gameplay formats, video games offer endless opportunities for brands to find innovative and engaging ways to connect with players, a market of more than 205 million Americans; video games are especially valuable for brands looking to connect with younger generations,” Mr. Pierre-Louis said. “Video games provide a unique opportunity to increase brand recognition and engage with consumers in bespoke ways.

“Our latest data shows that adults who play video games are also more likely to be employed full time and have a higher average income than the U.S. general population, making video games a great market for luxury brands to explore.”

Created in partnership with market researcher YouGov, the 2025 Essential Facts About the U.S. Video Game Industry report is based upon a survey of 5,000 Americans conducted in February 2025. Data is weighted to properly represent the U.S. population in terms of age, gender, ethnicity, education and region.

Widespread appeal
The majority of Americans are playing video games for at least an hour a week across smartphones, tablets, PCs, consoles or virtual reality headsets, with domestic consumers spending a total of $59.3 billion on the medium in 2024 alone.

From the increasingly influential Gen Alpha (see story), those aged 5 to 12, to the Silent Generation, those born between 1928 and 1945, domestic consumers are playing games regularly. More than 80 percent of the youngest group play video games weekly, while 36 percent of the Silent Generation take part in the activity.

Half of Gen Xers and Boomers play games every week, with more than 65 percent of millennials also logging on. Image credit: ESA Half of Gen Xers and Boomers play games every week, with more than 65 percent of millennials also logging on. Image credit: ESA

Overall, 60 percent of adults engage with the most interactive form of entertainment on the market. The split between men and women gamers is also nearly equivalent across demographics.

Reasons for playing games differ greatly by age, with older audiences taking part to keep their minds sharp, while younger individuals are logging in to forge deeper connections with their existing friend groups and meet new people they would have otherwise never met.

Video games also contribute heavily to activities outside of the digital space, with Gen Z and millennials finding new songs, movies and TV shows through their time behind the controller, while more than half of American adults play gamified versions of real-life sports, with 87 percent of the group believing the medium improves their real-life athletic performance.

The ESA presents its annual findings

"An increasing number of games are free-to-play or offer in-game purchase and branding opportunities after the initial game purchase," said Mr. Pierre-Louis.

"This means that video games create additional ways for players to show their personalities and engage with brands inside the virtual environment," he said. "Consumers are spending money on in-game purchases at a higher level than ever before, and these elements are widely popular among players.

"According to this year's Essential Facts report, 60 percent of Gen Alpha, 75 percent of Gen Z and 70 percent of Millennials have ever purchased in-game content, making video games an easy way to reach audiences with digital goods that may translate into real-life purchases in the future."

Digital touch
This phenomenon of exploring media and activities outside of gaming after interacting with digital versions of the content could expand outside of sports and entertainment.

Luxury brands stand to benefit from activating within and around the interactive medium, which some companies have already embraced.

Guests will have the opportunity to claim an exclusive digital collectible and a custom in-game livery for the Lamborghini Revuelto. Image credit: ESL FACEIT Group The average age of an American video game player is 36. Image credit: ESL FACEIT Group

"For example, Xbox and Gucci created a limited-edition collaboration, Balenciaga launched a line of skins in Epic Games' Fortnite and Burberry created an exclusive Minecraft collection, to name a few," said Mr. Pierre-Louis.

"Additionally, Tesla and BMW now include video games directly into their in-car interfaces, allowing drivers to access their favorite games (when in park)," he said. "Given the growing popularity of video games across all demographics, in-game integrations now offer opportunities previously reserved for brands within movies and prestige television.

"Plus, players not only recognize the brands in games, they interact with them, making in-game integrations a more personalized experience."

The game includes three areas, including the Pattern Lab, the Color Parkour and the WunderKammer. Image credit: Max Mara More than 80 percent of gamers play on mobile devices, while just under half interact on traditional video game consoles. Image credit: Max Mara

As high-end brands look to skirt an ongoing industry-wide slump (see story), they are looking to emerging avenues of advertising and consumer engagement to expand their cultural influence, with video games becoming a new horizon for the market to tackle.

The automotive space has long held connections to gaming, with product placements in racing titles dating back to the 1990s, but this relationship is quickly expanding. Just last month, German automaker Porsche opened a dedicated esports facility in Cologne, Germany (see story), while Italian automaker Lamborghini served as the first-ever automotive main partner of esports event DreamHack Dallas (see story).

Going back further, French fashion house Louis Vuitton has hosted several interactive events on Discord, a messaging platform popular among younger audiences, especially in the gaming space (see story). Last year, American home furnishings company Herman Miller launched a collaborative, limited-edition collection through its gaming chair division, as the business looks to embrace a growing consumer segment (see story).