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Video games in the United States facts for kids

Kids Encyclopedia Facts

The video game industry in the United States is one of the fastest-growing entertainment sectors in the country. It is also the largest video game industry in the world. In 2019, the American video game industry generated over $90 billion. It supported more than 429,000 jobs across the US. Many people directly work in the video game business, earning good salaries. The industry also contributes billions in taxes each year. Experts believe the US gaming industry will continue to grow, reaching over $42 billion by 2025. Video games are a very important part of the American economy.

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E3 at the Los Angeles Convention Center
BlizzCon 2017
BlizzCon in 2017

Many big video game companies have their main offices in the United States. These include Sony Interactive Entertainment, Microsoft Gaming (which includes Xbox Game Studios, Bethesda Softworks, and Activision Blizzard), Electronic Arts, Take-Two Interactive, Epic Games, Valve, Warner Bros. Games, and Riot Games.

The US also hosts many exciting video game events every year. Some popular ones are BlizzCon, QuakeCon, Summer Game Fest, and PAX. For many years, E3 was considered the most important gaming show. Awards like The Game Awards, The New York Game Awards, and D.I.C.E. Awards celebrate the best games. Over 100 million people watched The Game Awards in 2022! The Game Developers Conference (GDC) is a huge event for people who make video games.

In 2013, studies showed that 58% of Americans played video games. Most American homes owned at least one device for gaming, like a video game console, a PC, or a smartphone. By 2015, over half of US homes had a dedicated home video game console. Many people play games on their consoles or PCs. About 36% of US gamers use their smartphones to play. Many gamers feel that video games offer great value compared to other entertainment like movies or music. In 2011, the average American gamer spent about 13 hours a week playing. When people play games, 62% play with others, either online or in person. Parents often play video games with their children as a fun family activity. Over half of parents believe video games are a positive part of their child's life. Many also see gaming as good for mental challenge or learning.

Who Plays Video Games?

     Under 18 (20%)     18-34 years old (38%)     35-44 years old (14%)     45-54 years old (12%)     55-64 years old (9%)     65+ years old (7%)

More than 191 million people in the US play mobile games. This is over half of the country's population. The average age of a US gamer is 35 years old. They have usually been playing games for about 13 years. In 2021, 20% of US gamers were under 18. About 38% were between 18 and 34 years old. The rest were older age groups. The gamer population is 54% male and 46% female. Women aged 18 and older make up a larger group of players than males under 18. The average female gamer is 44, while the average male gamer is 35.

US Navy 100525-N-1831S-004 A Sailors en route to Fleet Week New York aboard the multipurpose amphibious assault ship USS Iwo Jima (LHD 7) play a demonstration copy of the new Top Gun video game
US Marine playing Top Gun in 2010

Popular Game Types

The most popular console video game genres in 2022 were action, shooter, and sports games. For PC gaming, role-playing, strategy, and casual games sold the best. When it comes to online games, puzzle/trivia, action/strategy, and casual/social games are the most played.

While many American companies make games, Japanese video games are also very popular. They often appear on best-seller lists. In December 2022, Americans spent $7.6 billion on gaming. This included games, consoles, and accessories. The total spending for the year was $56.6 billion. People still bought more physical copies of games than digital ones. The gaming world grew a lot in 2022, especially online and mobile games. Games are now seen as places for creativity, self-expression, and making friends. New technologies like AR (Augmented Reality) and VR (Virtual Reality) are also changing how we play.

Top-Selling PlayStation Games

The following games are the best-selling titles on PlayStation consoles, according to Circana as of 2025.

Gross revenue
Rank Title Year Developer Publisher
1 Grand Theft Auto V 2013 Rockstar North Take-Two Interactive
2 Call of Duty: Modern Warfare 2019 Infinity Ward Activision Blizzard
3 Red Dead Redemption 2 2018 Rockstar Studios Take-Two Interactive
4 Call of Duty: Modern Warfare II 2022 Infinity Ward Activision Blizzard
5 Call of Duty: Black Ops 6 2024 Treyarch, Raven Software Microsoft Gaming
6 Call of Duty: Black Ops Cold War 2020 Treyarch, Raven Software Activision Blizzard
7 Minecraft 2011 Mojang Studios Microsoft Gaming
8 Call of Duty: Black Ops II 2012 Treyarch Activision Blizzard
9 Grand Theft Auto: San Andreas 2004 Rockstar North Take-Two Interactive
10 Guitar Hero III: Legends of Rock 2007 Neversoft Activision
Unit sales
Rank Title Year Developer Publisher
1 Grand Theft Auto V 2013 Rockstar North Take-Two Interactive
2 Minecraft 2011 Mojang Studios Microsoft Gaming
3 Red Dead Redemption 2 2018 Rockstar Studios Take-Two Interactive
4 Grand Theft Auto: San Andreas 2004 Rockstar North Take-Two Interactive
5 Call of Duty: Modern Warfare 2019 Infinity Ward Activision Blizzard
6 Marvel's Spider-Man 2018 Insomniac Games Sony Interactive Entertainment
7 Call of Duty: Black Ops III 2015 Treyarch Activision Blizzard
8 Call of Duty: Black Ops Cold War 2020 Treyarch, Raven Software Activision Blizzard
9 Grand Theft Auto: Vice City 2002 Rockstar North Take-Two Interactive
10 Call of Duty: Modern Warfare II 2022 Infinity Ward Activision Blizzard

Best-Selling Games Each Year

Here are the top-selling video games in the United States each year since 1980. Sales figures from The NPD Group started in 1994. Out of 41 top-sellers between 1980 and 2022, Nintendo published thirteen. Activision Blizzard published twelve. Atari and Take-Two Interactive each published four. Electronic Arts published three, and Sega and Acclaim Entertainment each published two.

Year Top-selling title Developer Publisher Platform(s) Ref
1980 Space Invaders Taito Atari Atari VCS
1981
1982 Pac-Man Namco, Atari
1983 Ms. Pac-Man GCC, Midway
1986 Super Mario Bros. Nintendo R&D4 Nintendo NES
1987 The Legend of Zelda
1988 Super Mario Bros./Duck Hunt Nintendo
1989
1990 Super Mario Bros. 3 Nintendo R&D4
1991 Sonic the Hedgehog Sonic Team Sega Genesis
1992 Sonic the Hedgehog 2 Sega
1993 Mortal Kombat Midway Acclaim
1994 Donkey Kong Country Rare Nintendo SNES
1995
1996 Super Mario 64 Nintendo EAD Nintendo N64
1997 Mario Kart 64
1998 The Legend of Zelda: Ocarina of Time
1999 Pokémon Red / Blue / Yellow Game Freak Nintendo Game Boy
2000 Pokémon Gold / Silver Game Freak Nintendo GBC
2001 Pokémon Gold / Silver / Crystal
2002 Grand Theft Auto: Vice City Rockstar North Take-Two Interactive PS2
2003 Madden NFL 2004 EA Tiburon Electronic Arts
2004 Grand Theft Auto: San Andreas Rockstar North Take-Two Interactive
2005 Madden NFL 06 EA Tiburon Electronic Arts
2006 Madden NFL 07
2007 Halo 3 Bungie Microsoft Game Studios Xbox 360
2008 Wii Play Nintendo EAD Nintendo Wii
2009 Call of Duty: Modern Warfare 2 Infinity Ward Activision Blizzard Multi-platform
2010 Call of Duty: Black Ops Treyarch
2011 Call of Duty: Modern Warfare 3 Infinity Ward, Sledgehammer Games
2012 Call of Duty: Black Ops II Treyarch
2013 Grand Theft Auto V Rockstar North Take-Two Interactive
2014 Call of Duty: Advanced Warfare Sledgehammer Games Activision Blizzard
2015 Call of Duty: Black Ops III Treyarch
2016 Call of Duty: Infinite Warfare Infinity Ward
2017 Call of Duty: WWII Sledgehammer Games
2018 Red Dead Redemption 2 Rockstar Studios Take-Two Interactive
2019 Call of Duty: Modern Warfare Infinity Ward Activision Blizzard
2020 Call of Duty: Black Ops Cold War Treyarch, Raven Software
2021 Call of Duty: Vanguard Sledgehammer Games
2022 Call of Duty: Modern Warfare II Infinity Ward
2023 Hogwarts Legacy Avalanche Software Warner Bros. Games
2024 Call of Duty: Black Ops 6 Treyarch, Raven Software Microsoft Gaming
2025 Battlefield 6 Battlefield Studios Electronic Arts

A Look at Video Game History

1940s: Early Beginnings

The idea of video games started around 1940. An American scientist named Edward Condon created a computer that could play the game Nim. Thousands of people played it, even though the computer usually won! Seven years later, Thomas T. Goldsmith, Jr., an American TV pioneer, patented a device where players aimed a gun at a target on a screen.

1950s: Computers and Games

In the early 1950s, another American, Claude Shannon, wrote important rules for programming computers. This helped make games like OXO possible. The US military even used computers for war games, like Hutspiel, which showed how different countries might fight. Computers like the IBM 701 played games like Blackjack and Checkers. A forgotten tennis game, created by Willy Higinbotham, was an early version of the famous game Pong.

1960s: TV Games and Arcades

The military continued to use war games in the 1960s. One game, called STAGE, explored how the US might succeed in a major global conflict. The idea of playing games on televisions came from engineer Ralph Baer. With his team, Baer made two successful TV games. The first interactive computer game, Spacewar, later inspired the first arcade video game ever released, called Computer Space.

1970s: Consoles Arrive!

The 1970s saw the birth of the video game console. The first one was called Magnavox Odyssey. Around the same time, Atari was founded and started making Pong. Pong became a huge hit for Christmas in 1975. Consoles quickly improved, getting microprocessors and games on ROM cartridges. This meant players could easily switch games. Important consoles from this time included the Telstar, Fairchild Channel F, and Atari 2600. Arcade games also got better with Space Invaders, which tracked high scores. Asteroids later let players enter their initials for high scores.

1980s: Ups and Downs

New technology in the late 1970s led to the Intellivision in 1980, which had better graphics but cost more. In two years, the Commodore 64 became popular because it was powerful and affordable. As games grew, the first video game magazine, Electronic Games, was printed. However, too many similar games caused a tough time for the industry in 1983. Then, Nintendo launched the Nintendo Entertainment System (NES) in America in 1985. This brought new life to the market with consoles like the Master System, Game Boy, Sega Genesis, and TurboGrafx-16. Systems began to support 3D graphics and games on discs instead of cartridges.

1990s: A New Era

The 1990s brought us the Super NES, PlayStation, Nintendo 64, Tamagotchi, and Dreamcast. Their sales helped the video game industry grow strong again. The PlayStation was very popular, selling 20 million units. In 1993, people started discussing how games affect players, especially regarding action and adventure content. Some people, like Senator Joseph Lieberman, worried about certain games and wanted rules for them. This led to the creation of the Entertainment Software Rating Board (ESRB) in 1994. The ESRB gives games age ratings printed on their packaging.

2000s: Online Gaming and Motion Control

Xbox-console
Xbox (2001 console)

The 2000s saw Sony's PlayStation 2 become incredibly popular. It is still the best-selling console of all time worldwide. Microsoft and Nintendo also found success with their consoles, the Xbox and GameCube. The widespread use of the Internet brought online multiplayer games to consoles. Digital stores also appeared, making it easier to buy games and helping indie games grow. Games that used Motion control, like those on the Wii, became very popular. By 2006, about 45.7 million US homes owned a dedicated home video game console.

2010s: Mobile Games and VR

PS4-Console-wDS4
PlayStation 4 designed by American video game designer Mark Cerny

In the 2010s, mobile gaming on smartphones and tablets became very popular. This brought in more female and older players. The idea of "games as a service" grew, where developers kept adding content to games after they were released. Many independently developed video games became as good as those from big companies. It was easier to share them through digital stores. New consoles like the Xbox One, PlayStation 4, Wii U, and Nintendo Switch were released. Augmented reality and virtual reality games also grew as the technology became more affordable. Esports became a big market in the US. By 2015, over half of US homes owned a home video game console.

2020s: New Consoles and Changes

Microsoft and Sony released their newest consoles in November 2020: the Xbox Series X/S and PlayStation 5. Both offer amazing graphics and online features. Nintendo continued with its Nintendo Switch.

During a time when many people stayed home, video games became even more popular, leading to a big increase in sales from 2019 to 2021. Game companies found new ways to entertain players. For example, Epic Games hosted live concerts inside Fortnite with artists like Marshmello and Travis Scott. The Travis Scott concert had over 12 million viewers at once!

There were many company mergers and acquisitions in the US video game industry between 2020 and 2024. Companies hoped the growth from the pandemic would continue. Major American publishers like Microsoft Gaming, Sony Interactive Entertainment, Take-Two Interactive, and Electronic Arts bought other companies.

There were some job changes in the US video game industry in 2023 and 2024. This happened for several reasons. After the pandemic, the rapid growth slowed down, and companies needed to adjust their operations. Experts predicted a slight decrease in the industry's growth for 2024. The industry is now in a "reset phase," with companies reorganizing.

Actors who lend their voices and movements to video games went on strike in 2024. This was to ensure fair treatment and protection for their work, especially with new technologies like AI. The strike lasted almost a year, ending in June 2025 with a new agreement. Also, changes in trade rules led to higher prices for consoles from Microsoft, Sony, and Nintendo in the US.

How US Games Impact the World

The American video game industry has greatly influenced gaming worldwide. Popular RPG series like Dungeons & Dragons, The Elder Scrolls, and Fallout came from the US. So did first-person shooter series like Doom, Halo, Half-Life, and BioShock.

Many of the best-selling and most popular games ever were made in the United States. These include Call of Duty, Fortnite, World of Warcraft, Overwatch, League of Legends, Valorant, CSGO, Dota 2, Apex Legends, and Roblox. Revolutionary games like Skyrim, Half-Life, and BioShock also came from the US.

American companies like Epic Games have also created important technology for the industry. Unreal Engine and Unity are considered some of the best and most popular game engines. The rise of Steam and easy access to game-making tools helped many Indie games become popular.

The United States also has some of the biggest and most respected video game news websites and journalists. These include Game Informer, Metacritic, IGN, GameSpot, GamesRadar+, The Verge, Kotaku, Polygon, and Giantbomb.

Famous American Game Personalities

The Game Awards 2018 - Shawn Layden, Phil Spencer, Reggie Fils-Aime (cropped)
Sony Interactive Entertainment America president Shawn Layden, Xbox head Phil Spencer, and Nintendo of America president Reggie Fils-Aimé at The Game Awards 2018

Many influential video game creators, designers, and business leaders are American. Some famous names include:

Feedback on American Games

While American multiplayer games have helped the global industry grow, some players and journalists have criticized certain choices. For example, the addition of micro-transactions (small purchases within games) has received feedback. After the success of games like The Legend of Zelda: Breath of the Wild (2017), Elden Ring (2022), and Baldur's Gate 3 (2023), some people felt that American game companies could be more creative and innovative, like some companies in Japan and Europe.

Top-Selling American Games Worldwide

This list shows the best-selling video games worldwide that were developed or co-developed by American companies.

Title Sales Developer Publisher
Tetris (EA) 100,000,000 EA Mobile Electronic Arts
Red Dead Redemption 2 70,000,000 Rockstar Games Rockstar Games
Terraria 60,700,000 Re-Logic Re-Logic
The Elder Scrolls V: Skyrim 60,000,000 Bethesda Game Studios Bethesda Softworks
Overwatch 50,000,000 Blizzard Entertainment Activision Blizzard
Call of Duty: Black Ops III 43,000,000 Treyarch Activision Blizzard
Call of Duty: Modern Warfare 41,000,000 Infinity Ward
Stardew Valley ConcernedApe ConcernedApe
World of Warcraft 40,600,000 Blizzard Entertainment Activision Blizzard
Counter-Strike: Global Offensive 40,000,000 Valve, Hidden Path Entertainment Valve
Hogwarts Legacy 40,000,000 Avalanche Software Warner Bros. Games
The Sims 4 36,000,000 Maxis Electronic Arts
Call of Duty: Black Ops Cold War 30,000,000 Treyarch / Raven Software Activision Blizzard
Borderlands 2 Gearbox Software Take-Two Interactive
Call of Duty: Vanguard Sledgehammer Games Activision Blizzard
Diablo III Blizzard Entertainment
The Walking Dead 28,000,000 Telltale Games Telltale Games
Call of Duty: Modern Warfare 3 26,500,000 Infinity Ward / Sledgehammer Activision Blizzard
Call of Duty: Black Ops 26,200,000 Treyarch
Fallout 4 25,000,000 Bethesda Game Studios Bethesda Softworks
Call of Duty: Black Ops II 24,200,000 Treyarch Activision Blizzard
Kinect Adventures! 24,000,000 Good Science Studio Xbox Game Studios
God of War 23,000,000 Santa Monica Studio Sony Interactive Entertainment
Red Dead Redemption 23,000,000 Rockstar San Diego Take-Two Interactive
Call of Duty: Modern Warfare 2 22,700,000 Infinity Ward Activision Blizzard
Marvel’s Spider-Man 22,100,000 Insomniac Games Sony Interactive Entertainment
Borderlands 3 22,000,000 Gearbox Software Take-Two Interactive
The Last of Us 20,000,000 Naughty Dog Sony Interactive Entertainment

Major Video Game Companies

Logos of some of the biggest video game publishers in the US

Some of the largest video game companies in the world are based in the United States. For example, California alone has 444 companies that publish, develop, or make hardware for video games.

Sony Interactive Entertainment

Sony Interactive Entertainment San Mateo
Sony Interactive Entertainment's San Mateo, California headquarters

Sony Interactive Entertainment is a gaming company that is part of the larger Sony Group Corporation. Its main office is in San Mateo, California. In 2016, Sony moved its gaming headquarters from Tokyo to California. With over 4,000 developers and 19 studios, Sony Interactive Entertainment is one of the biggest video game companies. Ten of these studios are American. In 2022, Sony bought Bungie for $3.7 billion. Sony owns popular American studios like Naughty Dog, Santa Monica Studio, Insomniac Games, and Sucker Punch. They also own famous game series like God of War, The Last of Us, and Uncharted. God of War Ragnarok sold over 11 million copies in two months. In 2023, Marvel's Spider-Man 2 became the fastest-selling PlayStation game ever, selling 2.5 million copies in just 24 hours.

Take-Two Interactive

Ryan Brant started Take-Two Interactive Software, Inc. in New York City in 1993. Take-Two owns two major publishing labels: Rockstar Games and 2K. Both have their own game development teams. Take-Two also created the Private Division label to help independent game makers publish their games. They also own Ghost Story Games and have bought mobile game companies like Socialpoint, Playdots, and Nordeus. The company also owns half of the NBA 2K League, an esports league. In 2013, Grand Theft Auto V was a huge hit. It sold 11.21 million copies in 24 hours, making over $815 million. In just three days, sales passed $1 billion, setting a record for the fastest-selling entertainment product ever. Take-Two's games include BioShock, Borderlands, Grand Theft Auto, NBA 2K, Max Payne, and Red Dead. In 2022, Take-Two bought the mobile game company Zynga for $12.7 billion.

Electronic Arts (EA)

Electronic Arts (EA) is one of the world's largest independent video game publishers. It is based in Redwood City, California. Trip Hawkins, who used to work at Apple, founded the company in May 1982. EA was a leader in early home computer games. They called their game designers "software artists." With 12,900 video game developers, Electronic Arts is a very big publisher. Some of their studios include Respawn Entertainment, BioWare, Dice, and PopCap. EA became one of the biggest game companies with the success of EA Sports and game series like FIFA, NHL, NBA Live, Madden NFL, Dragon Age, Mass Effect, Dead Space, and Star Wars Jedi.

Microsoft Gaming

Microsoft Gaming is the gaming part of Microsoft Corporation. It is led by Phil Spencer. Microsoft Gaming includes Activision Blizzard, Xbox Game Studios, and Bethesda Softworks. It is the third-largest gaming company worldwide by revenue. It is also the largest video game employer in the United States.

Xbox Game Studios

Xbox Stand at E3 2013
Xbox stand at E3 2013

Xbox Game Studios is the gaming and publishing part of Microsoft. In 2001, Microsoft released its first Xbox console. The Xbox 360, released in 2005, was Microsoft's most successful console, selling over 84 million units. In 2014, Microsoft bought Mojang, the creators of Minecraft, for $2.5 billion. Minecraft is currently the best-selling video game of all time. In 2021, Microsoft bought Bethesda Softworks for $8.1 billion. Bethesda publishes major game series like The Elder Scrolls, Fallout, and Doom. In 2022, Microsoft announced it would buy Activision Blizzard for $68.7 billion. Microsoft owns 23 studios worldwide, including Bethesda Game Studios, Id Software, Playground Games, and Arkane Studios. In 2023, Starfield became the most played Xbox next-gen game ever. After buying Activision Blizzard, Microsoft Gaming became the largest video game employer in the US. They now own many famous games and studios, including Call of Duty, Diablo, Warcraft, Overwatch, Crash Bandicoot, and more.

Bethesda Softworks

Bethesda Softworks is a video game publisher located in Rockville, Maryland. Christopher Weaver started the company in 1986. Bethesda Softworks now focuses on publishing games. Its development team became Bethesda Game Studios. Microsoft bought ZeniMax (Bethesda's parent company) in 2021. Bethesda Softworks has published many popular games, including The Elder Scrolls V: Skyrim, Fallout 4, and Doom Eternal. In June 2023, Bethesda announced that Skyrim had sold over 60 million copies. This makes it the best-selling American video game ever and the 7th best-selling game of all time. Starfield reached over 6 million players, making it Bethesda's biggest game launch ever.

Activision-Gamescom 2013
Activision Blizzard at Gamescom 2013

Activision Blizzard

Activision Blizzard was formed in July 2008 when two game publishers, Activision and Blizzard Entertainment, merged. Activision Blizzard makes and owns many popular games. These include Call of Duty, Overwatch, World of Warcraft, Crash Bandicoot, Hearthstone, Candy Crush, and Diablo. Microsoft announced its plan to buy Activision Blizzard for $68.7 billion in January 2022. This deal was completed on October 13, 2023. Activision Blizzard is now part of Microsoft Gaming. The Call of Duty series is the 4th best-selling video game franchise ever, with over 430 million sales. Call of Duty: Modern Warfare II became the fastest-selling Call of Duty game, making over $1 billion in just 10 days. Diablo IV also became the fastest-selling game in Blizzard Entertainment's history, earning $666 million in its first 5 days.

Epic Games

Epic Games is an American company that develops and publishes video games and software. Epic Games creates Unreal Engine, a game engine used by many developers. This engine also powers Epic's own games. In 2014, Unreal Engine was named the "most successful video game engine" by Guinness World Records. Over 7.5 million developers use Unreal Engine. Epic Games owns game developers like Psyonix, Mediatonic, and Harmonix. They also own popular games like Fortnite, Rocket League, and Fall Guys.

Valve

Valve Corporation is an American company that creates, publishes, and sells digital video games. It is known for games like Half-Life, Counter-Strike, Portal, Team Fortress, Left 4 Dead, and Dota. Valve also created Steam, the largest digital store for PC gaming worldwide. Steam has over 30,000 games. In 2022, Steam set a record with over 30 million people using it at the same time. Valve released the Steam Deck, a handheld console, in 2022, selling over 1 million units.

Warner Bros. Games

Warner Bros. Interactive Entertainment is part of Warner Bros. Discovery's global streaming and interactive entertainment group. Warner Bros. Games owns game development studios like TT Games, Rocksteady Studios, NetherRealm Studios, Monolith Productions, Avalanche Software, and WB Games Montréal. They also publish the Batman: Arkham and Mortal Kombat video game series. Hogwarts Legacy, published by Warner Bros., became the best-selling game in Warner Bros. Games history. It sold over 12 million copies in two weeks and made over $850 million.

Riot Games

Riot Games Headquarters 2023
Riot Games headquarters

Riot Games is an American company based in Los Angeles, California. They create video games and organize esports events. Brandon Beck and Marc Merrill founded Riot Games in 2006 to create League of Legends. A Chinese company called Tencent bought most of Riot Games in 2011, and then bought the rest in 2015. Riot Games is one of the fastest-growing American video game companies, with over 5,500 developers. In 2018, the company had 24 offices worldwide. League of Legends made $1.75 billion in revenue in 2020. Riot Games also developed the popular first-person shooter game Valorant.

Other Publishers

  • Amazon Games
  • Wizards of the Coast
  • Oculus Studios
  • Devolver Digital
  • Netflix Games
  • Saber Interactive
  • Annapurna Interactive
  • Roblox Corporation
  • Scopely
  • tinyBuild
  • Finji
  • Nicalis
  • Re-Logic
  • Supergiant Games
  • Hi-Rez Studios
  • Innersloth
  • Telltale Games
  • Athlon Games
  • Jam City
  • Gun Interactive

Video Game Company Mergers

American video game companies have a long history of buying and merging with other companies. This has happened over many decades as companies try to grow, offer more games, and become more competitive.

One of the first big acquisitions was in 1988 when Sony bought Columbia Pictures, which had a growing video game division. This led to Sony entering the video game console market with the PlayStation in 1994.

In the years that followed, many companies merged or were bought. In 1995, Nintendo bought a large part of Rare, which made popular games for Nintendo. In 1999, Atari SA bought GT Interactive, known for publishing Doom.

The early 2000s saw more companies joining together. In 2001, Microsoft launched the Xbox and started buying studios to make more games. Microsoft bought Rare from Nintendo in 2002. In 2004, they bought Bungie, the creators of the popular Halo series.

Other companies also made important purchases. In 2003, Electronic Arts bought Tiburon, which made the Madden NFL games. In 2004, EA bought Criterion Games, known for the Burnout series.

This trend continued through the 2010s. In 2011, Sony bought Gaikai, a cloud-based gaming service that later became PlayStation Now. In 2012, Disney bought LucasArts as part of its purchase of Lucasfilm.

The 2020s saw a huge increase in video game company acquisitions. Microsoft bought ZeniMax Media (Bethesda) in March 2021. In January 2022, Sony Interactive Entertainment announced its purchase of Bungie. Take-Two Interactive's acquisition of mobile game maker Zynga was one of the most expensive video game acquisitions ever. The biggest video game acquisition of all time was Microsoft's purchase of Activision Blizzard, announced in February 2022.

Today, a few major companies lead the video game industry. These include Microsoft, Sony, Nintendo, Electronic Arts, and Activision Blizzard. They have grown by making new games and buying other companies. They continue to invest in new games and technologies.

Most Expensive American Video Game Acquisitions

Acquirer Target Year Deal Value
Microsoft Activision Blizzard 2023 $75.4 billion
PIF, Silver Lake, Affinity Partners Electronic Arts 2026 $55.0 billion
Take-Two Interactive Zynga 2022 $12.7 billion
Microsoft ZeniMax Media 2020 $8.1 billion
Activision Blizzard King 2016 $5.9 billion
Savvy Games Group Scopely 2023 $4.9 billion
Sony Interactive Entertainment Bungie 2022 $3.7 billion
Microsoft Mojang 2014 $2.5 billion
Electronic Arts Glu Mobile 2021 $2.4 billion
Meta Platforms Oculus VR 2014 $2.0 billion
Zynga Peak 2020 $1.8 billion

Working in Video Games

Education and Training

Video game designers need many skills. These include training in computer graphics, animation, and software design. A good designer also needs a strong imagination and knowledge of how different game consoles work. Understanding programming and computer hardware is essential because games are complex software. Many colleges offer classes and degrees in computer programming, computer engineering, software development, animation, and graphics. Internships or apprenticeships are important for getting hands-on experience. Aspiring American game designers can also do freelance work. It's even possible to design a game independently using available software. Making your own game can show employers what you can do, like a portfolio.

The Job Market

The US video game industry provides many jobs. Video game companies directly and indirectly employ over 120,000 people in 34 states. The average pay for direct employees is about $90,000. This adds up to $2.9 billion in total pay across the country.

The job market for game design in the US is very competitive. However, the US Department of Labor expects a 32% increase in software publishing jobs soon. A game designer's salary depends on where they work, who they work for, and their specific role. The International Game Developers Association reports an entry-level salary range of $50,000 to $80,000 annually, averaging $57,600. Another report suggests a starting salary of around $37,000 per year.

Top US States for Gaming Jobs

Here are the ten US states with the highest economic output from the video game industry in 2019.

State Output Employment
California $44.9 billion 44,205
Washington $11.4 billion 10,870
Texas $5.1 billion 9,437
New York $4.0 billion 5,730
Florida $2.2 billion 4,306
North Carolina $1.7 billion 2,849
Illinois $1.2 billion 2,169
Massachusetts $1.2 billion 1,731
Georgia $0.9 billion 1,802
Oregon $0.9 billion 1,560

Game Ratings and Safety

Before 1993, there wasn't a clear system to rate video games in the United States. As games became more realistic, some parents and leaders wanted a way to help families understand game content. In 1993, there were important discussions in the government about video games like Mortal Kombat and Night Trap. These talks showed that the game industry needed a better way to rate games for different ages. Leaders suggested they might create laws to control game ratings if the industry didn't act.

In response, the industry created the Entertainment Software Rating Board (ESRB) in 1994. This system met the concerns of the government at the time. The ESRB first focused on console games. Computer games used a different system until 1999, then also switched to the ESRB.

Since 1993, some events in the US led to discussions about whether video games caused aggressive actions. However, studies have not found a clear link between playing video games and real-life aggressive actions. Some state governments tried to pass laws to enforce ESRB ratings, meaning stores would be fined for selling mature-rated games to minors. This issue went to the highest court in the US, the Supreme Court of the United States. In 2010, the court decided that video games are a form of artistic expression, like books or movies. This means they are protected by free speech laws, and their sales can only be restricted in very specific situations, similar to other forms of art.

The ESRB system is voluntary in the United States. However, almost all major stores will not sell unrated games. They also typically avoid selling games rated "AO" (Adults Only), which are meant only for adults. Stores follow these age ratings voluntarily. In 2013, the Federal Trade Commission found that the ESRB system was very good at preventing sales of mature games to minors, compared to other entertainment industries.

Besides age ratings, the ESRB rating includes content descriptions. These help explain what's in the game, such as "Fantasy Violence" or "Mild Language." The ESRB rates games after reviewing materials from publishers. They also check games after they are released to make sure no extra content was added. If a publisher adds content after review, they can face fines. For example, the ESRB was involved in discussions about a special modification for Grand Theft Auto: San Andreas that revealed hidden content not meant for players. Currently, 85% of American parents know about the ESRB rating system. Many also find parental controls on video game consoles helpful.

For digital-only games and extra content for games, the ESRB encourages developers to use tools from the International Age Rating Coalition. This helps assign a rating that can be used in other countries, like the Pan European Game Information (PEGI) system.

Arcade games in the United States have their own "Parental Advisory System." This system provides guidelines for where more mature games should be placed in arcades.

See also

  • Best-selling video games in the United States by year
  • List of video games markets by country
  • 2023–2024 video game industry layoffs
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