First launched in June 2017 on the Xbox One, Xbox Game Pass is Microsoft's cross-platform gaming subscription service, which allows users to play online multiplayer, access a rotating library of games, and other services, depending on the subscription tier. Xbox Game Pass reported 34 million subscribers in February 2024. The overall reach of the Microsoft Xbox Network was an estimated 120 million monthly active users. A constantly evolving product With the multiplayer subscription service Xbox Live Gold already being a part of the online gaming experience on the Xbox One console, Microsoft introduced a separate on-demand subscription service for gaming content, known as Xbox Game Pass, in the second half of the console’s lifecycle. In April 2019, Microsoft also introduced Xbox Game Pass Ultimate, which bundles Game Pass with an Xbox Live Gold subscription. This higher-priced tier also includes EA Play, a subscription service for video games published by Electronic Arts. EA Play has been live in several iterations, known as Origin Access on PC and EA Access on consoles. In November 2020, EA Play was integrated into the XBox Game Pass Ultimate and instantly doubled its user reach. Expanding the content library via strategic acquisitions At launch, the Xbox One platform, and subsequently the Xbox Game Pass, have frequently been criticized for the lack of platform-exclusive releases. Compared to the PlayStation or Nintendo Switch, there were fewer major first- or third-party exclusives, and several flagship Microsoft exclusives also underperformed or were delayed or cancelled.To remedy this, Microsoft began to realign its first party studios first into unified Microsoft Studios (2017) and then rebranded this collection of gaming studios into Xbox Game Studios (2019). Since 2019, Microsoft has made several key acquisitions (Double Fine, InXile Entertainment, Ninja Theory, Obsidian Entertainment, Playground Games) before making a big splash with their 7.5 billion U.S. dollar purchase of holding company ZeniMax Media in March 2021. ZeniMax’s portfolio of gaming studios includes Bethesda Game Studios (maker of Fallout, The Elder Scolls, and the upcoming Starfield), id Software (developer of Doom, Quake, and the Rage series), Arkane Studios, MachineGames, and Tango Gameworks. It was Microsoft’s most high-profile gaming acquisition until the announcement of its intended purchase of Call of Duty maker Activision Blizzard for an eye-watering 69 billion U.S. dollars in January 2022. As of June 2023, the blockbuster deal is still up for regulatory approval due to concerns about industry consolidation and its impact on consumer choice.

In 2025, the estimated average revenue per user across all tiers on the Xbox Game Pass will amount to 151.07 U.S. dollars, a 15 percent increase on 2024. Microsoft has increased the prices for its Game Pass gaming subscription service in September, ahead of the new Call of Duty video game release at the end of October.

In October 2023, Microsoft finalized its Activision Blizzard acquisition for 69 billion U.S. dollars - the biggest deal to date for the gaming industry. According to surveys conducted in the United States in January 2022 and October 2023, the number of respondents who were very likely to subscribe to Xbox Game Pass following the Activision Blizzard games inclusion increased by three percent since last year, while those somewhat likely to subscribe grew from seven to nine percent. Overall, Microsoft's acquisition of Activision Blizzard looks to bring more subscribers to the Xbox Game Pass platform.

In Microsoft's fiscal year 2024, which spanned from July 2023 to June 2024, gaming revenue reached 15.47 billion U.S. dollars, down from 21.5 billion U.S. dollars in the previous fiscal period. Microsoft's gaming segment includes revenues from Xbox hardware and Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising. Microsoft is earning the fruits of its acquisition labor In recent years, Microsoft has made many strategic acquisitions to grow its gaming segment, and these efforts have paid off. Finally closing its purchase of Activision Blizzard after about 20 months of regulatory negotiations across the globe, this success was immediately reflected in the company’s quarterly gaming revenue, which jumped from 3.9 billion U.S. dollars to 7.1 billion U.S. dollars between October and December 2023. Of course, part of this growth is also the Christmas season, which is responsible for the biggest months in gaming sales. However, revenue in the following quarter settled back to 5.4 billion U.S. dollars, which is significantly higher than the corresponding quarter of the previous year. Layoffs at Microsoft despite gaming segment growth Despite Microsoft’s financial success in its gaming segment, the company has announced and performed several rounds of layoffs at many of its owned gaming companies, as well as shuttering some game studios entirely. In January 2024, mere months after closing its record-breaking Activision Blizzard deal, Microsoft laid off 1,900 Activision Blizzard, ZeniMax, and Xbox employees, citing “areas of overlap” and an “alignment of strategy” and growth. These layoffs are on par with the current state of the industry – an early 2024 survey of game developers found that about a third of respondents had experienced layoffs in the last 12 months.

In 2021, Microsoft's total annual Xbox gaming revenue amounted to 16.28 billion U.S. dollars. The company's Xbox Game Pass gaming subscription revenue during the year was approximately 2.9 billion U.S. dollars. Microsoft's gaming segment includes revenues from Xbox hardware and Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising.

Snapshot img

Game Streaming Market Size 2024-2028

The game streaming market size is forecast to increase by USD 1.05 billion at a CAGR of 8.51% between 2023 and 2028.

The market is experiencing significant growth, driven by several key trends. One notable trend is the increasing popularity of eSports tournaments, which have gained massive followings and sponsorships from major brands. Another trend is the growing demographic of women gamers, who now represent a substantial portion of the gaming community. Additionally, the health benefits of gaming, such as improved cognitive function and stress relief, are increasingly being recognized. These factors, among others, are fueling the growth of the market. However, challenges remain, including the need for high-speed internet connections and the potential for addiction and negative health effects. Despite these challenges, the market is poised for continued expansion as technology advances and gaming becomes more mainstream.

What will be the Size of the Game Streaming Market During the Forecast Period?

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The market is experiencing significant growth and transformation, driven by the growth in popularity of game streaming services and the mobile gaming sector. Major players in this market include Facebook Gaming and YouTube Gaming, which leverage their extensive user bases to offer live streaming and on-demand content. Cloud gaming platforms, such as Microsoft xCloud and Google Stadia, are revolutionizing the industry by enabling users to play high-quality games without the need for expensive hardware. Traditional gaming companies, like PlayStation and Xbox, have entered the fray with their respective streaming services, PlayStation Plus and Xbox Game Pass. The market's size is projected to expand as technological development and infrastructure improvements facilitate smoother delivery of streaming content.
Content acquisition remains a key focus, with popular titles like League of Legends, Dota 2, PUBG Mobile, Clash Royale, and Free Fire attracting large audiences. Content creation and monetization options are also crucial, with streaming platforms providing tools and monetization options for content creators to engage their audiences effectively. The role of the YouTube network and other live streaming tools in this ecosystem cannot be overlooked, as they offer a significant reach and influence on consumer behavior. Overall, the market is poised for continued growth and innovation, fueled by the intersection of technological advancements and evolving consumer preferences.

How is this Game Streaming Industry segmented and which is the largest segment?

The game streaming industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Revenue Stream

  In-game advertising
  Subscription
  Others


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Revenue Stream Insights

The in-game advertising segment is estimated to witness significant growth during the forecast period.

The market experienced substantial growth in 2021, with in-game advertising emerging as the largest segment. This trend is anticipated to continue during the forecast period, fueled by the increasing popularity of social media and mobile gaming. In-game advertising integrates advertisements into desktop and mobile games through various formats such as ads, clips, billboards, and backdrop displays. These non-interruptive advertisements offer a smoother gaming experience for players while delivering stronger audio-visual effects for viewers. As the mobile gaming sector continues to expand, driven by smartphone penetration rates and the availability of high-speed connectivity, game streaming services like Facebook Gaming, YouTube Gaming, Microsoft xCloud, Google Stadia, PlayStation Plus, Xbox Game Pass, League of Legends, Dota 2, PUBG Mobile, Clash Royale, and Free Fire are investing in strategic efforts to enhance their content delivery and monetization options.

Key technological developments, including the deployment of 5G networks by providers such as Optus and Pentanet, are further boosting the growth of the market. Content creators leverage live streaming tools like those offered by the YouTube network to engage audiences and monetize their content through platforms like Social Blade, where influencers like Germán Alejandro (JuegaGerman) and Garmendia Aranis have amassed significant followings.

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The in-game advertising segment was valued at USD 1.08 billion in 2018 and showed a gradual increase during the forecast peri

In the most recently reported fiscal quarter ending March 2025 (FY 2025 Q3), Microsoft generated approximately 5.7 billion U.S. dollars through its gaming segment. The tech company's gaming segment includes Xbox hardware and Xbox content and services, comprising Xbox Live (transactions, subscriptions, cloud services, and advertising), video games, and third-party video game royalties, as well as gaming revenues from its recently closed acquisition of gaming company Activision Blizzard.

The Cloud Gaming Market size was valued at USD 5.76 USD billion in 2023 and is projected to reach USD 54.62 USD billion by 2032, exhibiting a CAGR of 37.9 % during the forecast period. Cloud gaming, also called gaming on demand or game streaming, refers to playing a video game hosted on a remote server rather than on the player’s own computer or device. The remote servers use high-performance hardware to manage the processing, rendering, and execution of the game. The game audio and video are streamed back to the player’s device over the Internet, while player input (i.e., controller or keyboard and mouse actions) are sent back to the server. Due to their dependency on high-quality streaming video, cloud gaming services typically require reliable, high-speed internet connections with low latency. Even with high-speed connections available, traffic congestion and other issues affecting network latency can affect the performance of cloud gaming, and the ability to use a service regularly may also be limited by data caps enforced by some internet service providers. Recent developments include: December 2023 - Meta's VR headsets support Xbox Cloud Gaming, with a beta version of the app available for Meta Quest 2, 3, or Pro. Users can stream numerous Xbox games via an Xbox Game Pass Ultimate subscription, a Bluetooth controller, and a Quest headset. The beta app is accessible from the Meta Quest Store, and various Bluetooth controllers, including Xbox, PS4, and Switch Pro, are compatible. Support for PS5 controllers is expected in the future., October 2023 - Samsung Electronics Co., a leading smartphone manufacturer, introduced a cloud gaming service for mobile devices. This initiative aims to explore new revenue streams from its vast user base of 1 billion Galaxy users, given the sluggish growth in global mobile phone sales., October 2023 - Netflix trialled its cloud gaming service in the U.S., enabling members to play games on TV-connected devices and smart TVs using their smartphones as controllers. This beta phase, similar to previous tests in Canada and the U.K., offers a limited game selection and requires downloading a dedicated controller app., March 2023 - Ubitus K.K. entered into a partnership with Google, Inc. to bring advancement in the development of cloud-based game streaming. In contrast, Google Cloud is chosen as a cloud provider for Ubitus' GameCloud solution., March 2023 – Microsoft Corporation partnered with Boosteroid, a cloud gaming platform provider, to involve more gamers worldwide and aims to develop gaming operations in Ukraine and Russia., January 2023 - Ubitus K.K, a Japan-based cloud gaming provider, collaborated with JioGames to enhance the cloud gaming platform on 5G in India and help to improve the performance of cloud gaming in the local gaming market. , October 2021 – NVIDIA Corporation launched an advanced gaming platform on GeForce NOW, GeForce RTX 3080. The GeForce RTX 3080 subscription offers gamers the fastest frame rates, high resolutions, and lowest latency., September 2021 – Amazon Web Services, Inc., expanded its service offerings with the launch of a family-oriented subscription plan. Through these new updates, users get 36 child-friendly games such as Wandersong, Overcooked, Adventure Pals, and Spongebob Squarepants for an extra USD 2.99 per month to Luna+.. Key drivers for this market are: 5G Technology’s Low-latency Capability to Drive the Cloud Gaming Market Growth. Potential restraints include: Latency and Responsiveness Issues to Hinder Market Potential . Notable trends are: Rising Mobile Cloud Gaming Trend Likely to Boost Market Growth.

The size of the Southeast Asia Gaming market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 0.19% during the forecast period.The gaming market refers to the industry that encompasses the development, publishing, and distribution of video games. It covers a wide range of platforms such as consoles, personal computers, and mobile devices. This market also covers a wide range of genres, including action and adventure, role-playing games, and strategy games.The Southeast Asia gaming market has emerged as one of the highest-growing markets in the world as a result of a demographically young and savvy population increasing internet penetration as well as rising disposable incomes. The very diverse and unique cultural landscape of this region offered fertile ground to both national and international game developers and publishers.In particular, mobile gaming has grown phenomenally across Southeast Asia. Its popularity seems to have picked up even more speed, driven by an increasing reliance by many on smartphones as primary gaming devices.Mobile affordability and the advent of high-speed internet have also boosted mobile gaming and are reasons why its current popularity might continue growing stronger. That is how it happened in other parts of Asia, for instance, over the last decade or so. Recent developments include: September 2022- GRAVITY Co. Ltd, a producer, and publisher of online and mobile games, announced that Ragnarok Tactics II, a wholly-owned subsidiary, was successfully launched in Thailand. Ragnarok Tactics II is a tactical SRPG in which players level up their characters by gathering monsters. In the game, players fight with their characters and creatures. Aside from the character's progress, the battle's outcome is determined by how the monsters and characters are positioned in the conflict., March 2022 - Microsoft has announced the launch of PC Game Pass in Thailand, Malaysia, Indonesia, the Philippines, and Vietnam. Players can sign up for the PC Game Pass preview, which grants them access to a library of over 100 high-quality games, including new Xbox Game Studios releases on day one, Bethesda games, and an EA Play subscription for a low monthly fee.. Key drivers for this market are: Increasing Internet Penetration to Boost the Market Growth, The rising popularity of smartphones and 5G technology is expected to boost market growth.. Potential restraints include: Users' devices with limited game support may act as a market restraint.. Notable trends are: Mobile Segment to Hold Significant Market Share.

As of June 2025, **************** was the most popular gaming subscription service worldwide, with over **** million subscribers worldwide. Second-ranked ********************** and ************** had 34 million global subscribers, respectively. Cloud gaming and gaming subscriptions services have grown in popularity in recent years, headed by the almost obligatory use for console gamers as many experiences, such as online multiplayer, require such a subscription. PlayStation Plus is constantly evolving Currently, Sony’s PlayStation Plus subscription service exists as a paid-only membership service with three different tiers: Essential, Extra, and Premium. The key benefits of free monthly games, multiplayer access, discounts, and cloud storage are applied to all levels. However, the more expensive tiers also have free access to a gaming catalog of PS4 and PS5 games, as well as classic PS1 to PS3 games and cloud streaming access for select gaming titles. According to PlayStation gamers in 2022, the main reason they subscribed to PlayStation Plus was the online multiplayer, followed by the monthly free games gifted to subscribers. In 2022, the retail value of video games offered for free to PlayStation Plus Essential subscribers amounted to over 1,300 U.S. dollars. Xbox Game Pass has been making moves Microsoft has been aggressively bulking up the offerings of its Xbox Game Pass. On January 18, 2022, the company announced plans to acquire gaming company Activision Blizzard and to begin integrating Activision's catalog of games into Game Pass. The acquisition has not been completed yet, as it is still under regulatory review in several countries. According to a gamer survey in the United States, it was found that the inclusion of certain Activision Blizzard gaming franchises was likely to make them subscribe to Xbox Game Pass. Particularly best-selling shooter Call of Duty was the title most likely to cause non-subscribing gamers to subscribe to the service.

In January 2022, Microsoft announced their planned acquisition of gaming company Activision Blizzard. A survey among gamers in the United States found that the inclusion certain Activision Blizzard gaming franchises were likely to make them subscribe to Xbox Game Pass. As of that month, 46 percent of responding PlayStation gamers in the United States were interested in subscribing to Xbox Game pass for Activision Blizzard games. Only 27 percent of smartphone gamers were interested in subscribing, indicating different preferences between console and smartphone gamers.

In the fiscal quarter ending June 2024, Microsoft reported over 500 million monthly active gaming users across all platforms and devices. This is up from 200 million reported users at the end of 2023. The user figures are strongly impacted by the closing of Microsoft's acquisition of gaming giant Activision Blizzard.

Xbox Game Pass is the most well-known video game subscription in the UK. The video game subscription service from Microsoft is recognized by 64 percent of internet respondents, followed by PlayStation Plus which has a brand awareness of 63 percent in United Kingdom. Netflix Games comes on number three in this list, followed by Google Play Pass and Xbox Game Pass Core. For this study, brand awareness was surveyed employing the concept of aided brand recognition, showing respondents both the brand's logo and the written brand name.

In January 2022, Microsoft announced their planned acquisition of gaming company Activision Blizzard. A survey among gamers in the United States found that the inclusion certain Activision Blizzard gaming franchises were likely to make them subscribe to Xbox Game Pass. As of that month, Call of Duty was the title most likely to cause non-subscribing gamers to subscribe to the service. This was followed by the Diablo series with six percent and Warcraft and Crash Bandicoot, only with three percent. Other major Activision franchises did not play a significant role in gamers' subscription decisions.

In January 2022, Microsoft announced their planned acquisition of gaming company Activision Blizzard. A survey among gamers in the United Kingdom found that the inclusion of certain Activision Blizzard gaming franchises were likely to make them subscribe to Xbox Game Pass. As of that month, 48 percent of responding Xbox gamers in the UK were interested in subscribing to Xbox Game pass for Activision Blizzard games. Only 26 percent of PC gamers were interested in subscribing, indicating different preferences between console and PC gamers.

As of March 2023, Sony's PlayStation Plus video gaming subscription service had over 47.4 million subscribers 532431, 14.1 million of which were on the higher-priced Extra or Premium tiers. PlayStation Plus is a paid gaming subscription service that provides users with access to premium features at different pricing levels. PlayStation subscription services - change with the times Originally launched in 2010, PlayStation Plus has long since been a mainstay of the online gaming experience as it was a must-have to access online multiplayer gaming on PlayStation. Other features include exclusive discounts on the PlayStation Store, as well as free monthly games available for download. Up until mid-2022, players could also subscribe to a separate cloud gaming service, PlayStation Now, in order to access a library of PlayStation games that could either be streamed or downloaded to PC or PS consoles. In June 2022, Sony combined its PlayStation Plus and PlayStation Now gaming services, and the revamped PlayStation Plus service now features a three-tier subscription model. The existing service became PlayStation Plus Essential, with higher-priced tiers, PlayStation Plus Extra and PlayStation Plus Premium, adding access to downloadable and streamable gaming titles, which were formerly available under PlayStation Now. These changes were not universally well received at launch, as the PS Plus subscriber count dipped to its lowest figure since September 2020 before recovering at the beginning of 2023.

Xbox Game Pass - the competition is bulking up Sony’s PlayStation Plus service competes directly with Microsoft’s Xbox Game Pass, which currently has 25 million global subscribers. Additionally, Game Pass is also available for PC, and just in April 2023 expanded its user base to 40 new countries. With the Game Pass lacking in subscriber numbers, it makes up with its game catalogue, which Microsoft has been aggressively expanding in recent years. There are currently over 400 games available on Xbox Game Pass, which is a much smaller amount than the approximately 700 games on PS Plus at the highest tier. However, Microsoft has been acquiring gaming studios left and right to remedy this, and the company’s 69 billion U.S. dollar acquisition of Activision Blizzard is a testament to this fact. However, platform exclusivity of multi-platform games is an increasing concern among gaming audiences worldwide, who have been closely following these industry developments.

Six days after its January 2024 release, role-playing monster-taming game Palworld had sold about eight million copies. As of February 18, 2025, Palworld had a combined 32 million players on PC gaming platform Steam, as well as PlayStation and Xbox. Palworld was released in Early Access on PC via Steam and Microsoft Store, as well as Xbox consoles and Xbox Game Pass on January 19.