What Is the Video Gaming and Esports Industry?>
•February 12, 2026
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Why It Matters
The sector’s massive scale and evolving monetization create steady, diversified cash flows, making it a strategic focus for investors seeking exposure to interactive entertainment trends.
Key Takeaways
- •Global gaming market projected $188.8B by 2025.
- •3.6 billion players worldwide driving demand.
- •Revenue now relies on in‑game purchases, subscriptions.
- •Esports generates sponsorships, media, ticket sales.
- •ESPO ETF offers focused exposure to core gaming firms.
Pulse Analysis
The video gaming landscape has moved beyond a niche hobby to a mainstream cultural force, with Newzoo estimating a $188.8 billion market and 3.6 billion active players by 2025. This scale is underpinned by a transition to live‑service models, where developers continuously release new content, cosmetics, and season passes. By monetizing player engagement over years rather than a single launch, companies achieve more predictable cash flows and higher lifetime value per user, reshaping revenue expectations across the industry.
Esports amplifies this ecosystem by turning games into spectator events. Organized leagues, streaming platforms, and live tournaments attract sponsorships, advertising dollars, and ticket revenue, extending a title’s relevance well beyond its initial release. The competitive scene also fuels community growth, as fans tune in to watch professional play, creating a feedback loop that drives additional in‑game spending. This dual‑track model—play plus watch—has become a critical growth engine for publishers seeking to maximize both player retention and brand visibility.
For capital markets, the convergence of gaming and esports offers a compelling thematic investment opportunity. The VanEck Video Gaming and eSports ETF (ESPO) filters for firms that generate at least 50% of revenue from core gaming activities, ensuring exposure to the most directly linked businesses—developers, platform operators, hardware makers, and media rights holders. By aggregating these high‑impact players, the ETF provides diversified access while mitigating the risk of over‑reliance on any single title. As the industry continues to expand its monetization toolkit and global reach, such focused vehicles are poised to capture sustained upside for investors.
What Is the Video Gaming and Esports Industry?>
Key Takeaways:
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Gaming is a mainstream form of entertainment with a large global audience.
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Business models have shifted toward ongoing spending inside games.
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Esports adds a spectator layer that can deepen engagement around leading titles.
What Is the Video Gaming and Esports Industry?
Gaming is already part of daily life for billions of people. It shows up on phones during commutes, on consoles at night, and on PCs with friends on weekends. It is also showing up in a new place. Live competition.
That is where esports comes in. Esports is competitive gaming. Players and teams compete in organized matches and tournaments. Fans watch online and at live events. Some follow teams the way they follow traditional sports.
Gaming is the big category. Esports is one part of it.
Newzoo estimates the global games market at $188.8B in 2025 with 3.6B players.
Global Forecasted Players & Game Revenues Into 2028
Source: NewZoo, as of 2025. For illustrative purposes only. Not intended as a forecast or prediction of future results.
Video Gaming vs. Esports: What’s the Difference?
A simple way to think about it is this.
Gaming is what people do. Esports is what some people compete in and what many people watch.
Category
Video Gaming
Esports
What it is
Playing video games
Organized competitive gaming
Who takes part
Anyone who plays
Competitive players, teams, and leagues
Why people do it
Fun, social play, progress
Winning matches and titles
Where it happens
Console, PC, mobile
Streams, leagues, live events
How money is made
Game sales, in game spending, subscriptions, ads
Sponsorships, ads, media deals, tickets, merchandise
How the Industry Makes Money
Gaming used to be mostly a one time purchase. You bought a game and you were done.
That still exists, but the center of the business has shifted. Many of today’s biggest games are built to run for years. They add new content, new modes, and new seasons. Players can choose to spend over time on extras like cosmetic items or season passes.
Esports adds another set of revenue sources. Brands sponsor teams and events. Streams and broadcasts sell ads. Large events sell tickets and merchandise. For some titles, a strong competitive scene can keep the community active longer.
Global Gaming Revenue By Platform Type
Source: Inkwood research, as of 2024. For illustrative purposes only. Not intended as a forecast or prediction of future results.
The Video Gaming and Esports Network
This is not a single business. It is a network of companies that support how games are made, played, and watched.
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Game developers and publishers create games and build franchises.
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Platforms and storefronts distribute games to players.
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Hardware companies sell consoles, PCs, chips, and accessories.
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Creators and streamers turn games into daily content.
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Leagues and tournament organizers run competitive events.
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Fans and players drive the whole cycle through time spent and spending.
When a title becomes a hit, the impact can spread across this whole network. More players can lead to more content, more viewing, and more spending.
Why Gaming and Esports Are Considered Growth Industries
Gaming keeps growing because people keep choosing it. It is social. It is interactive. It works across devices. It travels globally.
There is also a business reason. Many games now earn money over a longer period. That can create steadier revenue than the old “launch weekend” model.
Esports fits here because it can turn a game into something people watch year round, not only something they play.
Approaching the Video Gaming and Esports Opportunity
For investors, the challenge is focus.
The industry includes publishers, platforms, and hardware firms that earn meaningful revenue from interactive entertainment. It also includes large companies where gaming is only a small side business. Those can dilute exposure if your goal is to target the theme.
That is where a dedicated approach can help.
VanEck Video Gaming and eSports ETF (ESPO) seeks to track the MVIS Global Video Gaming and eSports Index, which is built around companies involved in video game development, esports, and related hardware and software.
One design choice matters here. Companies must derive at least 50% of revenue from video gaming and or esports to be eligible for the Index. This rule is meant to keep exposure tied to the companies most directly connected to the theme.
For investors who want access to gaming and esports without relying on a single title or a single stock, ESPO offers a focused way to get exposure across the space.
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