2025
8
Canada Future of Gaming Report 2025
2025-04-09T13:02:58+01:00
REPCF1DCC00_77CC_4D60_8632_A6EEB1B75B57
3695
181143
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Report
en_GB
The Future of Gaming, Canada – 2025 Report explores the resilience and growth of Canada’s gaming industry, analyzing economic challenges, technological advancements and market trends shaping its future. It highlights…
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  8. Canada Future of Gaming Report 2025

Canada Future of Gaming Report 2025

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The Future of Gaming, Canada – 2025 Report explores the resilience and growth of Canada’s gaming industry, analyzing economic challenges, technological advancements and market trends shaping its future. It highlights technologies like the Nintendo Switch 2, NVIDIA GeForce RTX 5000 series and the impact of AI, VR and AR on gaming.

The Report examines trends like the rise of mobile gaming over traditional platforms and demographic insights on preferences by age and gender. It addresses key drivers and challenges, including inflation, tax changes, tariffs on hardware costs and the potential of cloud gaming to influence hardware innovation. Diversity and inclusion take centre stage, focusing on authentic representation in games and cultural accuracy demands.

Emerging opportunities include the popularity of handheld gaming among younger, diverse audiences and AI’s role in game development. Marketing strategies highlight the importance of social media and influencers, with platforms like TikTok and Threads key to engaging younger gamers. The report concludes with recommendations for navigating Canada’s evolving gaming market, helping stakeholders stay competitive in this dynamic space.

This report looks at the following areas:

  • Video game brand and play activity, along with play frequency
  • Ownership and purchase interest in handheld consoles
  • Factors important to consumers when purchasing a handheld
  • Reasons why consumers may not be interested in handhelds
  • Cloud gaming platforms streamed on
  • Reasons for not using cloud gaming platforms
  • Factors consumers are satisfied with when it comes to traditional gaming
  • AI innovations consumers would be interested in when purchasing a video game

Canada’s gaming industry surges with $11.69bn in 2024, spearheaded by mobile and cloud gaming, while advanced tech reshapes the gaming landscape.

Michael Lloy, Research Analyst

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Market predictions
    • What consumers want & why
    • Opportunities
    • Canada’s opportunity to lead the future of cloud gaming
    • Diversity in gaming: embracing Canada’s multicultural future
    • Canada’s handheld gaming boom: a growing opportunity for innovation and market expansion
  2. THE MARKET

    • Market context
    • Canada’s gaming industry: resilience, growth and the future of cloud gaming
    • Market drivers
    • Costs remain elevated for Canadians
    • Graph 1: consumer price index, 2021-25
    • Tax changes and rising costs: how the expiration of GST/HST exemptions impacts the gaming industry and consumer spending
    • Canadians are struggling to feed their families, power their vehicles and heat their homes
    • Graph 2: issues that have been affecting Canadians over the past two months, 2024
    • How Canada’s tech and media brands can use AI to adapt to value-driven consumers in uncertain times
    • Graph 3: household savings rate, Q1 2020-Q4 2024
    • How multiculturalism is shaping the future of Canada’s gaming industry
    • Graph 4: proportion of visible minority in Canada, 1981-2036
    • Unlocking opportunities: how the game industry can engage and empower seniors
    • Graph 5: population aged 0-14 and 65+, 2000-40 (projected)
  3. CONSUMER INSIGHTS

    • Setting the stage: gaming in 2025
    • Gaming is a mainstream hobby
    • Mobile gaming is a slightly more popular gaming format than traditional gaming
    • Graph 6: gaming formats played in the past three months, 2025
    • Gamers are highly engaged with their hobby
    • Graph 7: frequency of playing video games, 2025
    • A higher proportion of traditional gamers play on mobile platforms than vice versa
    • Graph 8: played video games on traditional formats in the past three months, by those who have played video games on mobile formats, 2025
    • Graph 9: played video games on mobile formats in the past three months, by those who have played video games on traditional formats, 2025
    • What does this mean for gaming brands? Mobile franchise tie-ins can be a good way to engage fans on multiple platforms
    • PlayStation is winning the console war, with two-thirds of console gamers utilizing the platform in the past three months
    • Graph 10: console brands played video games on in the past three months, 2025
    • Likely due to multiplayer, a higher percentage of Xbox players have played PlayStation in the past three months than vice versa
    • Graph 11: console brands played video games on in the past three months, by console brands played video games on in the past three months, 2025
    • Consumers over the age of 55 were significantly less likely to have played video games over the past three months
    • Graph 12: gaming formats played in the past three months, by age, 2025
    • For those under the age of 55, men and women were just as likely to play on mobile platforms
    • Graph 13: played videos games on a mobile phone in the past three months, by age and gender, 2025
    • Graph 14: played videos games on a tablet in the past three months, by age and gender, 2025
    • Men, in general, were more likely to play on traditional platforms
    • Graph 15: played video games on a static console in the past three months, by age and gender, 2025
    • Graph 16: played video games on laptop/PC in the past three months, by age and gender, 2025
    • Younger women are jumping into the handheld space
    • Graph 17: played video games on a handheld console in the past three months, by age and gender, 2025
    • Additionally, older women (55+) were significantly more likely than any other demographic to play videogames daily
    • Graph 18: play video games daily, by age and gender, 2025
    • Significantly more of Canada’s Black, Chinese and South Asian consumers play games than Canadians overall
    • Graph 19: gaming formats played in the past three months, by race, 2025
    • What gamers want
    • Aesthetics and library depth are strengths for the gaming industry, while consumers are less satisfied with online toxicity and price
    • Graph 20: traditional gaming platform satisfaction, 2025
    • Brands may be able to shift focus from graphical fidelity – especially when targeting women
    • Graph 21: “I would like video game graphics to be photo-realistic” (% agree), by age and gender, 2025
    • Brands can focus on accessibility and community to increase satisfaction among older players
    • Graph 22: satisfaction with game features (% any satisfied), by age, 2025
    • From the perspective of Black consumers, gaming brands are doing well with diversity and inclusion
    • Graph 23: satisfied with the level of diversity/inclusion within games (% any satisfaction), by race, 2025
    • However, there is always room for improvement
    • Graph 24: “game developers could do more to make games inclusive and representative” (% agree), by race, 2025
    • Striking a balance is hard however and a heavy focus on diversity may alienate other gamers if they perceive other elements of the game to be lacking
    • Graph 25: “I find that games that focus too heavily on diversity end up lacking in other areas” (% agree), by age and gender, 2025
    • Handheld gaming
    • Three quarters of gamers value portability when gaming
    • Graph 26: “I value the ability to play games anywhere and everywhere” (% agree), by age, 2025
    • Most Canadians do not own a handheld gaming console, but there is significant opportunity for brands to expand the space
    • Graph 27: handheld gaming ownership and purchase interest, 2025
    • Ownership of handhelds declines with age, but more swiftly for women
    • Graph 28: handheld console ownership (net), by age and gender, 2025
    • Among handheld owners, consumers are twice as likely to show interest in repurchasing as not
    • Overall, just under half of consumers are interested in purchasing a handheld
    • Graph 29: handheld gaming purchase interest (% any interest), by age and gender, 2025
    • Is there an opportunity to convert older mobile gamers (ie women aged 55+) to handhelds?
    • Price is the defining factor when it comes to consumer purchase decisions for new handhelds
    • Graph 30: important factors when choosing a new handheld gaming device, 2025
    • Age is a primary driver for what features consumers want from their handheld consoles
    • Graph 31: important factors when choosing to purchase a handheld console (select), by age and gender, 2025
    • Men are significantly more likely to care about device hardware than women
    • Graph 32: graphical fidelity, by age and gender, 2025
    • Graph 33: loading speed, by age and gender, 2025
    • Black gamers are significantly more likely to desire playing games anywhere and everywhere
    • Graph 34: “I value the ability to play games anywhere and everywhere” (% agree), by race, 2025
    • For Black and South Asian consumers also exhibit higher ownership and and purchase interest of handheld consoles than Canadians overall
    • Graph 35: “I do not own a handheld gaming console, but am interested in purchasing one”, by race, 2025
    • Older consumers are simply not interested in playing games on the go
    • Graph 36: reasons for disinterest in purchasing a handheld console, by age, 2025
    • Gaming communities and online spaces
    • Two thirds of gamers find online gaming spaces inclusive
    • Younger men are significantly more likely to feel that online spaces are inclusive
    • Graph 37: “I find online gaming communities to be inclusive” (% agree), by age and gender, 2025
    • Black and South Asian Canadians are significantly more likely to feel that gaming spaces are inclusive
    • Graph 38: “I find online gaming communities to be inclusive” (% agree), by race, 2025
    • Traditional gaming media outlets need to pivot if they are to remain relevant
    • Consumption habits are driving gaming media channel shifts among younger consumers
    • Graph 39: traditional games media (eg IGN and other review sites) are being surpassed by individual content creators (eg YouTube reviewers) (% agree), by age, 2025
    • Circling back to diversity and inclusion, individual content creators surpass faceless brands
    • Graph 40: traditional games media are being surpassed by individual content creators (% agree), by race, 2025
    • Cloud gaming
    • With how expensive gaming platforms are, many consumers are finding it hard to keep up
    • Console streaming services are more popular than all others
    • Graph 41: video game streaming/cloud streaming services used, 2025
    • As one might expect with newer technology, younger consumers are early adopters
    • Graph 42: video game/cloud streaming services used, by age, 2024
    • Black and South Asian consumers were significantly more likely to use most streaming services
    • Graph 43: video game/cloud streaming services used, by race, 2025
    • Consumers are worried about oversaturation of the Cloud Streaming market – but fears are potentially unfounded
    • When it comes to non-streamers, perceptions of cost and lack of knowledge are the largest barriers
    • Graph 44: reasons why consumers don’t use cloud streaming services, 2025
    • Half of consumers feel that cloud gaming isn’t suitable for multiplayer
    • While men are among the most likely potential users for cloud gaming, an unlikely user group shows potential: women aged 35-54
    • Graph 45: “I expect to use cloud gaming services more than consoles in the next five years” (% agree), by age and gender, 2025
    • Gaming and the AI revolution
    • Half of gamers are interested in playing games with a heavy amount of AI-generated content
    • Graph 46: “I am interested in playing games with a large amount of AI-generated content” (% agree), by age and gender, 2025
    • Procedural generation and voice acting sees less interest than AI-driven dynamic difficulty
    • Graph 47: AI innovations consumers would be interested in when purchasing a video game, 2025
    • Younger gamers – particularly men – are significantly more interested in AI innovations in their games
    • Graph 48: AI innovations consumers would be interested in when purchasing a video game, by age, 2025
    • Over half of consumers feel that utilizing AI in game development is unethical
    • Graph 49: heavily utilizing AI in game development is unethical (% agree), by age and gender, 2025
  4. COMPETITIVE STRATEGIES

    • Launch activity and innovation
    • Nintendo Switch 2 announced: 4K gaming, new features and enhanced performance
    • NVIDIA GeForce RTX 5000 Series: Revolutionizing Gaming Performance and Visuals
    • Cloud Gaming in 2025: growth, innovation and challenges reshaping the industry
    • Microsoft unveils Muse: the AI model transforming Game Development
    • Razer unveils game-changing innovations at CES 2025: Blade 16, Project Arielle and Project Ava
    • Marketing and advertising
    • Facebook, YouTube and Instagram are the most-utilized social media platforms on a daily basis
    • Graph 50: daily social media usage, 2025
    • Leveraging social media trends to engage gaming audiences in Canada
    • Graph 51: daily social media usage, by age, 2025
    • Men aged 18-24 are among the highest-engaged traditional gamers
    • Every three months, Nintendo releases highly engaged direct-to-consumer marketing videos, known as Nintendo Directs
    • Wining and dining YouTube creators and influencers can guarantee good preliminary press for a game
  5. APPENDIX

    • Consumer research methodology
    • Generations
    • Abbreviations and terms
    • Abbreviations and terms (cont’d)

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