AI and user-generated content drive resurgence of the video game industry, studies say

That’s the conclusion of a new survey of approximately 3,000 gamers that also revealed that 55% of them increased their gaming time over the past six months. Additionally, more adults continue to play later in life: more than 40% of baby boomers and more than 50% of Generation X gamers report playing five or more hours a week. However, many gamers feel financially pressured: 49% expect discounts before purchasing and 31% say they will skip purchases if prices increase.

These are some of the findings of a new report from Boston Consulting Group (BCG)titled Video Gaming Report 2026: How Platforms Are Colliding and Why This Will Spark the Next Era of Growth. The document examines four trends that will shape the industry in the coming years: Generative AI (GenAI), the rise of user generated content (UGC), the rise of cloud gaming and the opening of app stores.

“The video game industry is passing a critical stage and we are optimistic about what is coming,” said Giorgo Paizanis, partner at BCG and co-author of the report. “Growth is recovering and post-pandemic stagnation is fading. While the increase in income has been largely driven by prices, Players remain passionate about the game, and their growing participation in leisure time dedicated to gaming demonstrates this. Parents who grew up playing still do so, added to the fact that the growing accessibility through screens and platforms allows people to play at more times.”

As part of the report, BCG analyzed metadata from an online gaming platform and found that around 7,300 games revealed the use of AI, including about a fifth of the titles released in the third quarter of 2025. Based on those findings, BCG estimates that around 50% of studies now use AI.

The reasons are multiple and as a tool AI can increase efficiency by improving code and automating quality control. It can also improve the user experience by creating gameplay that adapts to players’ choices in real time and using memory, personality and behavior powered by GenAI.

However, it is not without risks and half of developers say they are concerned about player rejection of AI.

User-generated content (UGC) has emerged as a rapidly growing economy, with payments set to reach $1.5 billion by 2025 coming from just two games. More than 40% of respondents said they are consuming more UGC this year than last, but only 10% to 15% have created content themselves. Streamers also have a big influence: more than half of players (55%) said they would try a new game if their favorite creator switched to it.

Although 60% of those surveyed said they had tried cloud gaming, and 80% of them reported a positive experience, only 27% of players said they were regular or intensive users of this technology. However, cloud gaming revenue is expected to grow from around $1.4 billion in 2025 to $18.3 billion in 2030, with the number of users exceeding 50 million.

In the wake of regulatory actions, developers, especially in the mobile sector, have new opportunities to distribute and monetize their games through alternative app stores.

The BCG report estimates that mobile in-app purchases in 2025 will approach $130 billion, nearly half of the industry’s global revenue. One-third of adults and 40% of teens have already purchased from developer-owned web app stores.

“Over the next five years, we expect an explosion of new game and player content,” said Ernesto Pagano, CEO and senior partner at BCG, and co-author of the report. “Cloud gaming, user-generated content, AI and the opening of app stores will transform the way games are built and distributed. Players will expect more: fresh experiences, vibrant communities and the freedom to play on different devices wherever they go. Studios that embrace this moment of change have the opportunity to define the future of video games.”