The video game industry has exploded in size and revenue over the past decade. According to Newzoo, the gaming market was valued at over $175 billion globally in 2021 and is forecast to surpass $321 billion by 2026. Driving this growth is an array of leading video game developers, publishers and hardware makers competing for consumer attention and spending across PCs, consoles, mobile devices and emerging platforms.
Let‘s take a closer look at the 10 largest video game companies worldwide, their flagship franchises and future outlook.
#10: Bandai Namco – Pac-Man, Tekken
Founded: 1955 (merger in 2006 between Bandai and Namco)
Headquarters: Tokyo, Japan
Key Executives: Mitsuaki Taguchi, President & CEO
Top Franchises: Pac-Man, Tekken, Soulcalibur, Dragon Ball
Revenue (2021): $6.8 billion
Bandai Namco is known for its iconic arcade games and fighting franchises. Though the company has older roots in toymaking, its 2006 merger formed the Bandai Namco we know today. Flagship series like Pac-Man and Tekken continue to have strong followings globally. And the company has capitalized on popular anime IPs like Dragon Ball to develop games with built-in audiences.
Looking ahead, Bandai Namco is focused on ramping up development for next-gen consoles like PlayStation 5 while expanding its mobile gaming portfolio.
#9 Ubisoft – Assassin‘s Creed, Far Cry
Founded: 1986
HQ: Montreuil, France
Key Executives: Yves Guillemot, CEO & Co-Founder
Top Franchises: Assassin’s Creed, Far Cry, Tom Clancy series
Revenue (2021): $2.7 billion
From humble beginnings in France, Ubisoft has grown into one of the world‘s most prominent AAA game developers. They‘re perhaps best known for their Assassin‘s Creed and Far Cry action-adventure series. Yet Tom Clancy shooters like Rainbow Six Siege also have avid fanbases. Ubisoft is also investing heavily in open-world online multiplayer experiences like The Division and Ghost Recon Breakpoint.
The company has faced recent turnover and scandal in its executive ranks. However, Ubisoft plans to move forward with an ambitious slate of sequels and even potential Netflix adaptations.
#8 Take-Two Interactive – NBA 2K, Grand Theft Auto
Founded: 1993
HQ: New York, NY
Key Executives: Strauss Zelnick, Chairman & CEO
Top Franchises: NBA 2K, Grand Theft Auto, Red Dead Redemption
Revenue (2021): $3.4 billion
Powering Take-Two is its stable of gritty, boundary-pushing action titles for mature audiences. The Grand Theft Auto franchise has sold well over 300 million copies to date. And the Western epic Red Dead Redemption 2 broke records of its own at launch. Take-Two also develops annual sports titles like NBA 2K and WWE 2K to complement its core open-world IPs.
Under the leadership of Zelnick, the company has grown via acquisition of developers like Social Point (mobile games) and Dynamixyz (graphic rendering). With GTA 6 rumored to be in development, Take-Two should continue up the ranks of gaming revenue.
#7 Epic Games – Fortnite
Founded: 1991
HQ: Cary, North Carolina
Key Execs: Tim Sweeney, Founder & CEO
Top Franchises: Fortnite, Gears of War, Unreal Engine
Revenue (2020): $5.1 billion
You may not know Epic Games by name. But chances are you or someone you know has spent hours battling in Fortnite. The free-to-play battle royale shooter has evolved into a global cultural sensation. Moreover, Epic develops cutting-edge developer tools like the Unreal Engine that power today‘s top games. Long focused on their proprietary offerings, the company has more recently taken aim at the digital distribution market with its Epic Games Store on PC.
Epic is reportedly valued at over $32 billion following its latest funding efforts. With phenoms like Fortnite and strategic licensing deals, this gaming juggernaut has plenty of room left to grow.
#6 Electronic Arts – FIFA, Madden NFL
Founded: 1982
HQ: Redwood City, California
Key Execs: Andrew Wilson, CEO
Top Franchises: FIFA, Madden NFL, The Sims, Battlefield
Revenue (2021): $5.6 billion
From early 80‘s upstart to present-day gaming giant, Electronic Arts boasts some of the industry’s most seasoned leadership and beloved franchises. These include perpetual sports titles like FIFA and Madden NFL, competitive shooters like Battlefield and Apex Legends as well as life simulation pioneer The Sims. EA also has a deep catalog of mobile games installed on over half a billion devices worldwide.
Under fire in the past for reliance on loot boxes and downloadable content (DLCs), EA has worked to strengthen trust and transparency with players. Ongoing priorities include expanding into international markets and pushing new IPs utilizing emerging technologies.
#5 Activision Blizzard – Call of Duty, Candy Crush
Founded: 2008 (merger between Activision and Vivendi Games)
HQ: Santa Monica, California
Key Execs: Bobby Kotick, CEO
Top Franchises: Call of Duty, Warcraft, Candy Crush
Revenue (2021): $8.8 billion
Through a blockbuster merger in 2008, Activision Blizzard united leading console developer Activision with the legendary MMORPG creator Blizzard. Among the company‘s major franchises are military shooter series Call of Duty and the Warcraft games. Mobile subsidiary King Digital also delivers casual experiences to millions daily through Candy Crush.
Activision Blizzard has navigated scandal for its workplace conditions and response. However the company still retains some of gaming‘s most valuable properties. With big swings like Call of Duty going free-to-play and possibly Xbox exclusive, Activision Blizzard‘s future remains unpredictable but influential.
#4 Tencent Games – League of Legends
Founded: 1998
HQ: Shenzhen, China
Key Execs: Ma Huateng, Chairman & CEO
Top Franchises: League of Legends, Clash of Clans
Revenue (2021): $31.6 billion gaming revenue
Chinese tech conglomerate Tencent is the world‘s largest video game company by revenue – and it‘s not even close. Yet rather than developing first-party titles, the company‘s strategy is acquiring stakes in popular games and studios. These include League of Legends creator Riot Games, Clash of Clans maker Supercell and a 40% share of Epic Games. Tencent has also been instrumental in growing mobile gaming in China across iOS and Android devices.
As Chinese regulations tighten on gaming, Tencent faces new challenges retaining users – especially younger ones. However with leading titles and partnerships worldwide, Tencent should adapt its diverse business well.
#3 Nintendo – Mario, Zelda, Pokémon
Founded: 1889
HQ: Kyoto, Japan
Key Execs: Shuntaro Furukawa, President
Top Franchises: Mario, The Legend of Zelda, Pokémon
Revenue (2021): $15.3 billion
It‘s incredible to think Nintendo has been around since the 1800‘s. Beginning as a playing card company in Japan, it has gone on to birth some of gaming‘s most iconic series. These include the Mario and Zelda adventures, kid-friendly life sims like Animal Crossing and monster collector Pokémon. Even over 130 years since launch, Nintendo continues surprising fans with hardware innovations and masterful game design.
The company‘s current hybrid console Nintendo Switch has sold over 111 million units to date. Next up for the Mario maker is developing a mysterious "metaverse" platform some believe may succeed the Switch.
#2 Microsoft Xbox Game Studios – Halo
Founded: 2000
HQ: Redmond, Washington
Key Execs: Phil Spencer, CEO
Top Franchises: Halo, Forza, Minecraft
Revenue (2021): $16.3 billion
Microsoft stormed onto the gaming scene in 2001 with the original Xbox console and shooters like Halo Combat Evolved. Since then, the Xbox brand has evolved across four console generations and into services like Xbox Game Pass. Microsoft also greatly expanded its game development arm in 2022 by acquiring scandal-ridden Activision Blizzard.
Xbox now oversees globally recognized series like sci-fi epic Halo, racer Forza Horizon and the blocky phenomenon Minecraft. And with console hardware sales now less relevant, Microsoft aims to lead a Netflix-style shift to cloud game streaming.
#1 Sony PlayStation – Uncharted, Spider-Man
Founded: 1993
HQ: Tokyo, Japan
Key Execs: Jim Ryan, President & CEO
Top Franchises: Uncharted, God of War, Spider-Man
Revenue (2021): $25 billion PlayStation revenue
From the start, Sony played to win in the console wars by recruiting top talent across Japan and America to create PlayStation. This all-star approach resulted in cinematic hits like Uncharted, God of War (2018) and an exclusive Spider-Man series. Over 450 million systems sold to date, the latest PlayStation 5 is already on pace to overtake the PS4 generation.
Sony is continuing to invest in prestige studios like Bungie (Destiny franchise) to supply PlayStation franchises for years to come. With continued focus on technical marvels and masterful storytelling, PlayStation remains the industry‘s gold standard in more ways than sales.
The Future of Video Games
Though still going strong, industry analysts believe console gaming has reached a "mature" phase with slower growth overall. Instead mobile now accounts for over 50% of global gaming revenue. Downloads on iOS and Android stores continue fueling mega-hits likeRoblox, Honor of Kings and Genshin Impactfrom China‘s miHoYo.
Subscription services are also seeing huge uptake. Microsoft‘s Xbox Game Pass now boasts over 25 million members who pay monthly access to hundreds of games. And both Google and Amazon have invested heavily into cloud infrastructure for streaming game experiences directly through the browser.
Expect the video game landscape to further decentralize among platforms, business models and distribution channels in the years ahead. But creatives like Nintendo and Sony PlayStation will surely continue driving hardware and software innovations from the front for the foreseeable future.
