The 2025 State of Play on Games, Tech, and Media
How gaming is reclaiming its future
The SuperJoost Playlist is a weekly take on gaming, tech, and entertainment by business professor and author, Joost van Dreunen.
This week I’m in Austin.
As is now tradition, we release an annually refreshed industry overview during SXSW to share with the broader community of entertainment, tech, and media folks. What follows is a synopsis of the larger report. You can find the full deck below.
Comments, as always, are welcome.
On to this week’s update.
A quick note re: the 2025 SuperJoost GDC Happy Hour
Yes, I’ll be in SF next week.
Paid subscribers to the SuperJoost Playlist will automatically receive an invitation to join this year’s festivities and merriment.
See you there!
The State of Play at SXSW
TL;DR: Gaming isn’t in decline—it’s resetting, shedding tech overreach, diversifying revenue streams, and shifting power back to players and creators as the industry enters its next era of innovation.
At SXSW, in my fifth appearance, I challenged the prevailing narrative of gaming’s so-called decline. Despite headline-grabbing studio closures, high-profile game failures, and over 15,000 layoffs in 2024 alone, these aren't signs of an industry in terminal decline—they’re markers of a structural transformation.
For over 50 years, interactive entertainment has followed a cyclical pattern, swinging between two dominant forces: content innovation (new experiences, mechanics, and ideas) and distribution innovation (new ways for games to reach audiences). This industry has always demonstrated resilience in these transitions—from Atari’s collapse to Nintendo’s resurgence, from physical retail to digital storefronts.
Today’s market correction—a 7% revenue decline after two decades of 700% growth—signals the beginning of another distribution-driven era. This shift is defined by three strategic imperatives I call the "Low Trinity":
Low Tech – Reducing platform dependencies by prioritizing accessible experiences and breaking entrenched play patterns.
Low Brow – Expanding beyond the traditional youth audience to capture broader, more diverse demographics.
Low Cost – Shifting monetization models to blend premium and ad-supported access, creating sustainable revenue diversity.
Mainstream market analysis fixates on falling valuations and venture capital’s retreat, but this is not failure—it’s a reset. With corporate overreach pulling back, gaming’s creative voices are reemerging. The pendulum’s shift toward distribution innovation marks a reclamation of interactive entertainment’s core values—player-first experiences over technology-first imperatives.
This shift is already taking shape at the grassroots level. Browser-based development has grown 16%, indie hits like Balatro are thriving with intentionally simplified design, and physical play formats are enjoying a renaissance. These trends point to a deliberate rejection of technological spectacle in favor of accessible, meaningful play.
Economically, this realignment is unlocking cross-sector opportunities as gaming’s cultural influence expands. But more importantly, it’s redefining how the industry generates revenue—diluting its reliance on traditional tech ecosystems and platform holders.
The sheer size of the global gaming audience has now reached a critical mass where indirect revenue models are not just viable, but necessary. With the industry expanding into new markets like India, where lower average spending demands alternative monetization strategies, and mainstream brands shifting their investments away from expensive, toxic, and declining social media platforms, gaming is emerging as the preferred engagement channel for global consumer industries.
This shift is already taking shape across consumer electronics ($73B), tech platforms ($28B), toys and collectibles ($17B), and beauty/apparel ($9B)—but for the first time, these relationships are being built on gaming’s own terms. Brands are no longer treating games as just another advertising channel—they’re embedding themselves into game ecosystems in ways that are more organic, interactive, and emotionally meaningful than traditional social media campaigns.
As a result, we’re seeing more diversified revenue streams than ever before, from brand-integrated in-game content and esports partnerships to hybrid monetization models combining premium, ad-supported, and subscription-based access. The industry’s ability to monetize through engagement rather than direct sales alone means gaming is no longer just a product—it’s a platform in itself, with economic models that don’t rely on the whims of a single tech giant or app store.
This is more than just a financial adjustment; it’s a structural shift that makes gaming more resilient, more accessible, and more valuable across industries.
Far from being in decline, gaming is undergoing a necessary structural recalibration. Our current moment, however painful, signals not contraction, but maturation—a shift toward sustainable economic foundations and creator-driven value. The pendulum’s return to distribution-focused innovation recenters power where it belongs: with the players, creators, and communities.
You can find the full report here.