Part One: The Key Trends Powering Gaming’s Resurgence
By Greg Sherman and Matt Skiba
3 takeaways
- AI, Web3, and UGC are shaping the future of gaming. Executives who understand AI-driven personalization, decentralized economies, and player-created experiences may have a competitive edge.
- Handheld and cross-platform gaming are gaining traction. With Steam Deck, Switch, and cloud gaming expanding, companies can consider evolving their engagement strategies.
- Gaming leadership is evolving. Avatars, digital assets, and new monetization models are creating opportunities for leaders who think ahead.
The gaming industry is poised for a comeback in 2025. After a few slow years, things are heating up again. Experts predict that global gaming revenues will soar to $266 billion by 2028, growing steadily at 5% annually. What’s fueling this surge? Think AI-powered gaming, Web3 gaming platforms, User-Generated Content (UGC), and a growing focus on player-first experiences. These trends aren’t just reshaping gameplay; they’re also redefining what leadership looks like in the gaming industry. Companies must align their executive hiring strategies with these developments to stay competitive.
What’s Driving the Gaming Comeback?
1. How AI-Powered Games Are Revolutionizing Personalized Gaming Experiences
AI is revolutionizing how games are made and played. Games like Cyberpunk 2077 feature AI-powered character behavior for more realistic gameplay, while Minecraft employs AI to enhance user-generated content. AI tools such as Unity’s AI Game Development Suite and GPT-powered storytelling engines streamline development and enable dynamic narratives. AI-driven personalization is transforming game difficulty adjustment, NPC interactions, and player decision-making, making every gaming experience unique.
- Leadership impact: As AI becomes central to game development, gaming companies will need executives with strong AI knowledge who can integrate these technologies strategically. Leaders capable of guiding AI-powered innovation will be essential for driving consumer engagement and maintaining a competitive edge.
2. Web3 Gaming & User-Generated Content: The Rise of Player-Created Economies
Web3 gaming enhances player experiences by offering true ownership of digital assets, decentralized control over game economies, and opportunities for user-generated content (UGC) to flourish. Platforms like Roblox, The Sandbox, and Fortnite Creative Mode are investing in tools that empower players to build and monetize their own games and experiences, creating entirely new ecosystems. In 2024, 33% of top gaming startups were Web3-focused, more than double the year before. Gamers now have more power—and they’re here for it.
- Leadership impact: The rise of Web3 and UGC demands executives with expertise in blockchain technology, digital assets, and decentralized ecosystems. Leaders who understand how to build secure, engaging player-owned economies will shape the future of consumer trust and loyalty in gaming.
3. Investments and Big-Name Acquisitions Are Reshaping Gaming’s Future
Investors are betting on gaming. Major players like Tencent and Sony have boosted stakes in top gaming startups. Venture firms like Andreessen Horowitz and Sequoia Capital are investing heavily in blockchain-based and AI-driven gaming platforms. With gaming investments nearly tripling to $3.2 billion across 317 deals, the sector is primed for explosive growth.
- Leadership impact: With increased investments and M&A activity, gaming companies will need executives skilled in scaling startups, managing partnerships, and navigating mergers. Strong financial acumen and strategic vision will be essential to leverage these growth opportunities.
4. The Shift to Handheld Consoles and the Future of Gaming Hardware
Emerging markets like Latin America and the Middle East & Africa are expected to grow at 6.2% and 8.9%. Players in these regions can expect localized games tailored to cultural preferences. Meanwhile, portable gaming devices like the Nintendo Switch and Steam Deck are rapidly gaining traction, with many viewing them as the future of console gaming. While PC gaming will continue to dominate among hardcore gamers, console gaming is shifting towards more flexible, handheld experiences.
- Leadership impact: Global expansion requires leaders who understand regional market dynamics and cultural nuances. Executives with international experience will be crucial in developing localized strategies and forming partnerships that drive sustainable growth in diverse markets.
5. Gaming Meets Entertainment & The Rise of Digital Identities
Gaming and entertainment are merging. Beyond Disney’s $1.5 billion stake in Epic Games for a Fortnite universe featuring Disney characters, there’s Netflix’s The Witcher and Arcane, HBO’s The Last of Us, and Sony’s plans for a Ghost of Tsushima film. Cross-platform storytelling is shaping immersive experiences across industries. Additionally, avatars are emerging as the future identity layer in gaming—players will develop valuable digital identities that could be sold, traded, or transferred across virtual worlds.
- Leadership impact: The convergence of gaming and entertainment calls for visionary leaders who can manage cross-industry collaborations. Executives with backgrounds in both sectors will be essential for developing immersive, multi-platform franchises that captivate global audiences.
**Stay tuned for Part Two: Future-Proofing Gaming Leadership: Key Executive Roles and Skills for AI and Web3 Success
Greg Sherman and Matt Skiba Lead the Gaming, Entertainment, Media and Sports (GEMS) practice at Riviera Partners.
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