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Combined with the closure of its AAA gaming division, the move suggests the streamer is still searching for a winning plan for gaming.

User loyalty: Despite the Switch 2鈥檚 delays and the Switch鈥檚 declining sales, gamers remain fond of the console. Thirty-two percent of Gen Z gamers and 26% of millennial gamers play on a Nintendo Switch, per Collage Group. By comparison, only 13% of both Gen Z and millennial gamers use any other handheld console. A new era?

Fenty Beauty makes a play for gamers: The brand partnered with Netflix's 鈥淎rcane鈥� animated series that鈥檚 based on the 鈥淟eague of Legends鈥� video game to roll out a gamer-inspired collection.

Netflix cuts its expensive AAA gaming division, indicating anxieties about long-term, high-cost games projects. Focusing on smaller IP-based projects could better align with its business model.

US Gamers by Generation 2025 (蘑菇AV subscription required). US In-Game Ad Revenues Forecast 2024 (蘑菇AV subscription required). Methodology: Data is from the February 2025 Attest report titled "Gaming in 2025: What Brands Need to Know." 1,363 US adults ages 18+ were surveyed on January 6, 2025. Of these respondents, 1,000 play video games at least a few times per month.

Why it matters: Lowe鈥檚 is banking on video games as a path to cultivate digitally native demographics like Gen Z and gather data that will enhance its relationships with these future homeowners and DIYers. More brands are recognizing digital games as a powerful and engaging channel. More than half (57.2%) of the US population will be digital gamers this year, per our forecast.

Gaming content (moderate disruption). Key market dynamics. YouTube is an increasingly influential鈥攂ut ultimately adjacent鈥攄igital gaming channel. It isn鈥檛 necessarily disrupting gaming advertising, but brands setting ads against gaming-related content are likely attracted to YouTube thanks to its growing audiences. YouTube trails Twitch for livestreaming content.

Amid industry layoffs and closures, Blizzard needs Vessel of Hatred to reignite interest in Diablo IV and maintain its strong position in the gaming market.

Gaming offers a long runway of opportunity for advertisers. In 2025, US digital gamers will spend nearly as much time playing as social network users spend on social platforms each day (1 hour, 48 minutes versus 1 hour, 51 minutes, respectively). But at $8.76 billion, US gaming ad revenues will account for just a fraction of the $102.66 billion that social networks garner in ad spending.

Its gaming portfolio had driven engagement and improved its ad targeting. On its Q4 2024 earnings call on February 12, 2025, AppLovin announced that it had signed a term sheet to sell its portfolio of gaming studios for $900 million. Up until that point, the company owned over 200 free-to-play mobile games that served as valuable data sources for AppLovin鈥檚 ad tech ecosystem.

This makes it a prime candidate for second-screen engagement, whether alongside gaming, streaming, or fandom-driven interaction. Protecting the community: Safety remains a top concern, especially amid public scrutiny.

Nearly 3 in 4 Gen Zers are digital gamers in 2025. Gen Zers have the highest penetration rate of digital gaming (73.8%). Nearly 75% of Gen Zers are digital gamers compared with 57.2% of the total population. Digital gaming鈥檚 popularity among Gen Zers marks the adoption of digital gaming as an everyday habit for the majority of the population rather than a niche hobby.

It鈥檚 applying metaverse-style commerce strategies into its gaming ecosystem. Game platforms and creators looking to monetize beyond in-game purchases can now transform virtual fandoms into profitable brand loyalty, per The Verge. How it works: Participating Roblox games will have a 鈥減remium shop鈥� where users can browse items like T-shirts and hoodies.

ASUS ROG: The major gaming laptop and accessories manufacturer has scaled back laptop sales to the US market. 鈥淏uy鈥� buttons have been replaced by "Notify Me" buttons for various models on its website. 8BitDo and Anbernic: The makers of gaming peripherals and handheld gaming devices have both stopped supplying products to the US market.

Our debut worldwide digital gamer forecast reveals that growth has slowed considerably, mainly because gaming is already a common and popular activity for internet users in almost every country. But some markets are more enthusiastic than others.

Why 鈥淢inecraft鈥� is succeeding: The movie is based on the best-selling video game of all time, meaning it has a larger鈥攁nd more family-friendly鈥攁udience than other video game adaptations. However, a significant reason behind the success of 鈥淎 Minecraft Movie鈥� is the film鈥檚 massive marketing push, studded by an array of high-profile collaborations and immersive brand tie-ins.

When not watching videos, Gen Alphas are gaming. We estimate 44.9% of children under 12 are digital gamers. Many Gen Alphas are picking up the habit from their parents: 75% of parents are gaming with their children regularly, according to a September 2024 Entertainment Software Rating Board (ESRB) survey. More than half of Gen Alphas play on mobile devices.

Demand for the successor appears equally strong: Preorders on Target.com sold out in less than 2 hours when they went live on April 24, highlighting both the enduring strength of the Nintendo brand and consumer appetite for next-generation gaming hardware. Our take: Target鈥檚 Nintendo Switch 2 launch strategy melds event retailing and experiential merchandising.

That includes once-overlooked areas of the mobile ad market, such as the gaming ecosystem. AppLovin will not be the only company to benefit from the dissolution of mobile ad buying silos. If AppLovin succeeds in bringing ecommerce advertisers into gaming and expanding into web ads, they鈥檒l probably take a look at other advertising categories.