The Main Revenue Sources for the Electronic Gaming Industry

July 1, 2021
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The gaming industry is an ever-growing market that has had very humble beginnings, the electronic games, or video games as we all call them started with coin-operated machines, which had very limited game options. The industry as we know it today took its first steps into the entertainment industry as home consoles like Nintendo and Atari, these console had pixelated 8-bit graphics, a couple of decades later video games are on top of the entertainment industry which are divided into three major categories: consoles gaming, PC gaming, and mobile gaming.

Some of the most important players in the console market are Sony PlayStation, Microsoft Xbox, and Nintendo Switch. These companies have been around for decades and know how to provide a quality product that will keep you coming back for more. They also offer a variety of different options so there’s something out there for everyone no matter what your budget may be. The best part about these devices is that they never go out of style because people always want to play video games. The majority of the revenue from the electronic video gaming industry is divided into the following three parts.


Hardware is the most important part of the gaming industry, whether a person is a console, pc, or mobile gamer they are in constant need of new and improved hardware. Apart from the console itself, hardware includes controllers, headsets, chargers, and other things. For PC gamers the list of hardware is more extensive as they have the option to build their rig from scratch (which is always recommended), hence the hardware component could include processors, RAM, SSD/HDD, GPUs, and many other peripherals. For mobile gamers, the list could include game controllers, headsets, wireless controllers, and power banks. 

Software (Includes in-game purchases as well)

The software includes the game itself along with all the other in-game purchases and downloadable content. Games themselves are an important part of the electronic gaming industry because without new titles the industry would eventually die. Every year hundreds of new titles are released whether AAA, MMO, RPG, or Indie titles these games generate the revenue that keeps the industry going. Titles like GTA V, Minecraft, PUBG, and Zelda are some of the most famous titles that have sold millions of copies over a number of platforms. Some free-to-play games offer in-game purchases like skins, DLCs, and packs which offer players competitive advantages, these in-game purchases are also a major revenue generator for the gaming industry.

Live Services

Live services are also an essential part of the video game industry, these services include monthly subscriptions for various MMO games, game subscription services like Xbox game pass and EA play offer a number of games on monthly basis, cloud gaming like PS Now and Google Stadia offer cloud gaming. Microtransaction and season passes allow players to partake in certain events, one best example is the season passes are the Battlepass for Fortnite and Call of Duty: Warzone.

These are some of the ways with which the gaming industry generates billions in revenue annually.

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