Gaming has come a long way, both as a form of entertainment and as a worldwide industry. What was once a niche pastime known for being a waste of time, has become a household staple.

But many remain unaware of the industry behind gaming. Many have heard of massive companies like EA, but few actually understand the scope of the video-game industry.
 

A Real Money Machine

The prevailing assumption is that the movie and music industries rake in the most money. While this was true for quite some time, video games today have overtaken both industries in terms of revenue. In reality, video games surpassed the amount of both movies and music make combined.

In 2018, alone, the video-game industry saw a profit of over $134.9 billion. Meanwhile, on the other side of the ring, global box-office revenue for cinema amounted to a relatively paltry $41.1 billion, and music global revenue totaled at $19.1 billion.

And gaming is showing no signs of stopping. The overall revenue for the industry is projected to grow by as much as 9.6 percent, adding up to $152.1 billion.

Some of the most notable franchises profit-wise are Rockstar Games' (TTWO) Grand Theft Auto and Nintendo's (NTDOY) Pokémon. The former, a well-established sandbox action-adventure game, released its latest installment, GTAV, in 2013. Since then, it has amassed a staggering excess of $6 billion worldwide.

But Pokémon is the true gaming money-spinner. It stands as the industry’s most profitable series and has brought it as much as $17 billion since the franchise’s inception. That’s excluding all merchandise outside the games themselves, mind you.

As far as platforms go, games for both PC and consoles make up around half of the market share. Meanwhile, mobile platforms are becoming more and more prominent in the video-game world, taking up just a bit more each year. 
 

The Industry Top Dogs

Over the decades, several publishers and developers have managed to cut out massive chunks of the market for themselves. Here is some information about the top five players:
 

• Sony (SNE)

Since its founding in 1946, this Japanese multinational corporation has long since become a household name with its electronic and gaming production. And now it’s the leading brand in the gaming industry.

Its game-related earnings stood at around $16.5 billion in 2018. That’s mainly because its world-famous consoles, in addition to its Marvel-related games and the much-acclaimed God of War series, have secured a seat at the game-manufacturer throne. 
 

• Microsoft (MSFT)

The second in line is Microsoft. We all know about this iconic tech company, founded by Bill Gates and Paul Allen in 1975. For years, their Windows OS made the rounds as the most widespread operating system in the world, and now you would be hard-pressed to find someone who has never used it.

Their PCs are mainly what make it so prominent in the gaming world, but their Xbox, along with its innumerable titles, also deserves much of the credit. Microsoft’s current revenue from gaming stood at an enormous $10.4 billion last year.
 

• Nintendo (NTDOY)

Home to the Mario, Pokémon, and Legend of Zelda franchises, Nintendo’s status in the gaming realm is nothing short of legendary. In fact, it’s impossible to think of what gaming would be without this more-than-a-century-old company’s contribution.

From the NES in 1983 to the 2012 Wii U, Nintendo has been on the lips of every true gamer for decades. And this gilded history is what makes it one of the largest video-game names in the world. Nintendo racked up a hefty $9.9 billion last year with its gaming products. 
 

• Activision Blizzard (ATVI)

In contrast to the above entries, Activision Blizzard is not a console provider, but rather a game developer and publisher. Nevertheless, their mark on the industry is indelible, with paradigm-shifting masterpieces like Call of Duty and the Warcraft/World of Warcraft series.

Speaking of which, AB enjoyed a profit of $7.2 billion in 2018. Titles such as the aforementioned Call of Duty, and WoW, as well as Overwatch, made up much of these earnings. And the massively positive reception of Sekiro: Shadows Die Twice promises to make 2019’s figures even higher.
 

• Electronic Arts (EA)

EA is well-known for its numerous sports games, letting players take to football fields, rugby pitches, and basketball courts alike. But these are far from the only kinds of video games they’ve produced: releases like Medal of Honor and the largely acclaimed Apex Legends are both in our lives courtesy of EA. And EA has been quite the success last year, garnering as much as $5.2 billion from its video games.
 

The Future for The Video-Game Market

One thing remains certain: the gaming industry isn’t going anywhere for a long time. In fact, it only promises to grow, judging by the predicted figures for 2019.

Two trends promise to become more prominent. The first is the breakthrough of free-to-play games: they’re free, but in-game transactions (skins and other tiny features) cost a bit of money. The likes of Fortnite amassed over 100 million players, and League of Legends isn’t too far behind.

The other phenomenon comes in the form of portable platforms. Smartphone games are slowly taking over the market, and by 2020 they should account for half of all active gaming. Interestingly, much of mobile gaming also includes free-to-play games. But the convenience of playing on the go, plus the rapidly improving technology behind mobile devices, is undeniable.

Overall, video games are doing better than ever.