Most people, even those who have worked in the gaming industry for years, don’t have a clear understanding of how big the gaming industry is. For example, people who work on or play mobile games don’t even know the big players in the AAA gaming field. There is also a common misconception that esports is the same as gaming.
Personally, I believe these misconceptions and lack of awareness are the fundamental causes of many problems in the gaming industry.
That’s why, in this article, I want to discuss gaming industry mapping so that people can have a clearer picture and, hopefully, contribute to bringing the gaming industry toward a brighter future.
1. Platform-Based Segmentation
Let’s start with the easiest category. Gaming can be categorized based on the platforms used to play games. These include:
A. PC Gaming
One of the most common misconceptions about PC gaming is that it is usually associated with high-performance hardware. While that’s not entirely wrong, it’s not the full picture. High-performance hardware is typically required for AAA gaming (games like Skyrim, Cyberpunk 2077, Avowed). Meanwhile, indie games and Free-to-Play games usually avoid setting high hardware requirements because they aim to reach as many players as possible.
Compared to other platforms, PC gaming is the most balanced, where AAA games are as popular as Free-to-Play games. It is also a great environment for esports titles and indie games. We will take a closer look at different genres, player interactions, and revenue models later on.
It’s worth noting that nowadays, it’s more common to find games that support multiple platforms. Genshin Impact, for example, can be played on PC, console, and mobile.
B. Console Gaming
A common misconception about the console gaming industry is that people often generalize the three major consoles into the same market.
However, if we look closer, there are significant distinctions between each console.
First, Sony’s PlayStation heavily emphasizes exclusive (or exclusive-first) AAA games. Stellar Blade, Ghost of Tsushima, and the Horizon series are a few examples that were released on PlayStation first before coming to PC years later. Compared to other consoles, PlayStation has the most iconic AAA games associated with the platform.
Meanwhile, Nintendo’s exclusive games are generally more family- or child-friendly, such as Animal Crossing, Pokémon Legends: Arceus, and The Legend of Zelda: Breath of the Wild.
Last, and sadly least, Xbox seems left out when it comes to exclusive games. The Halo and Gears of War series, which were once Xbox staples, are no longer exclusive. Even then, Xbox’s iconic games don’t quite reach the same level as PlayStation’s, such as God of War, Final Fantasy, Gran Turismo, and many others.
C. Mobile Gaming
If PC gaming is more balanced and console gaming is heavier on AAA or premium games, mobile gaming undoubtedly places a stronger emphasis on Free-to-Play games.
While mobile gaming does have premium titles, their popularity is nowhere near that of Free-to-Play games on mobile platforms—or even AAA games on PC or consoles.
This is primarily due to its massive user base. Nearly everyone owns a smartphone. On the other hand, while most workers use laptops or desktops, the majority of those PCs belong to offices, making them unsuitable for gaming. Consoles have an even smaller user base since they are primarily owned by middle-class or wealthier individuals who are gaming enthusiasts.
Because of its massive potential user base, Free-to-Play games have the highest chance of success on mobile platforms.
Another possible reason is the device’s main function and user behavior. Consoles are machines primarily designed for extended gaming sessions. Meanwhile, PCs are originally designed to be used for hours—whether for work or gaming.
On the other hand, personally, I can’t stare at my phone screen for too long. Maybe I’m just getting older, but I’d argue that phones—whether smartphones or feature phones—were originally designed for short but frequent usage.
D. Cloud Gaming
Now, let’s take a look at the youngest platform. Even though cloud gaming was officially introduced in 2000, 25 years later, it remains the least popular platform. In theory, cloud gaming should be able to surpass console and PC gaming since it eliminates the need for expensive gaming hardware.
However, in reality, our internet connectivity is still far from mature enough to handle large data streams with the lowest latency required for a proper cloud gaming experience. Besides internet connectivity, another major challenge for cloud gaming is its business model.
Let me explain.
Cloud gaming service providers must own the rights to distribute or allow users to play games on their platforms. This means cloud gaming providers need substantial capital, strong relationships with publishers, or significant authority in the industry. Without these, gaming publishers are unlikely to grant them permission to host their games. As a result, finding a pricing strategy for cloud gaming services that is competitive with traditional platforms is difficult.
2. Revenue Models
This is another simple categorization, with four types of games classified by their revenue model.
A. Premium Games
Premium games require users to purchase the game before playing, which is why they are also called Pay-to-Play games.
Within this category, games can be further divided into three subcategories:
- AAA Games: High-budget, large-scale games developed by major studios with significant marketing and production investments (GTA series, Cyberpunk 2077, Baldur’s Gate 3).
- AA Games: Mid-tier games with decent budgets and production values but not as extensive as AAA titles (Hellblade: Senua’s Sacrifice, Greedfall, Atomic Heart, Lies of P).
- Indie Games: With smaller budgets and teams, indie games have more freedom to focus on unique art styles, storytelling, and gameplay mechanics (Stardew Valley, Vampire Survivors, Balatro).
B. Freemium Games
Freemium games, often called Free-to-Play games for marketing purposes, generate revenue through in-game ads or in-app purchases.
Ironically, despite being labeled “free,” players can end up spending significantly more money on these games than on premium titles. In premium games, you typically pay once to access the full experience. Meanwhile, in freemium games, every advantage and additional convenience feature is most likely placed behind a paywall. They often incorporate artificial scarcity mechanics—such as Stamina or Energy—that limit playtime unless players spend money.
C. Subscription-Based Games
Subscription-based games are rare nowadays. Two that instantly come to mind are Final Fantasy XIV and World of Warcraft. Subscription models are unpopular because they are arguably the least favorable for both players and game companies.
For players, buying a premium game outright is often cheaper than paying for a subscription. Meanwhile, for publishers, subscription-based games don’t generate as much revenue as Free-to-Play games, where in-app purchases can occur millions (or even billions) of times daily. Even ad-supported Free-to-Play games can theoretically generate more income due to the sheer volume of ads served.
D. Web3/Blockchain Games
Last but not least, there are Web3/blockchain games. I place them in this revenue classification rather than the platform category because they can exist on mobile or PC—or both. More importantly, they are typically marketed with a Play-to-Earn model.
Although still niche, Web3 games gained popularity alongside other blockchain products like cryptocurrency and NFTs. While proponents claim Web3 gaming is the future, it remains to be seen if they will survive. The skepticism isn’t just due to the bad reputation of blockchain products, which are often linked to pump-and-dump schemes and bad actors, but also because Web3 games’ gameplay quality is nowhere near that of Free-to-Play or premium games.
3. Player Interaction Category
Now, we are starting to get into a more complex and commonly misunderstood categorization. Let’s break it down for better clarity.
A. Singleplayer Games
Singleplayer games are the oldest type of games, as multiplayer games require more advanced technology. However, contrary to what some game executives believe, singleplayer games are here to stay because they will always have a dedicated fanbase.
Singleplayer games are most commonly premium titles. They often feature the most advanced and visually stunning graphics, as well as the most intricate and engaging stories and lore.
User behavior for singleplayer games is more similar to that of moviegoers than multiplayer gamers. Singleplayer gamers typically don’t replay the same game repeatedly; instead, they complete one game and move on to the next.
It’s also important to note that some games can be played in both singleplayer and multiplayer modes. The Call of Duty series on PC and console, as well as the Borderlands series, are examples. These games offer a singleplayer campaign but also include multiplayer functionality.
B. Multiplayer Games
I’d say this is the most complex part of categorization. I have divided multiplayer games into four subcategories.
A. Cooperative (Co-op) Games
Usually known as co-op games, these are multiplayer games that allow players to play together cooperatively, usually fighting against NPCs or AI. In co-op games, there is no option to fight against other players—unlike the next type of multiplayer game.”
Some notable examples of co-op games include:
- It Takes Two
- Left 4 Dead (1 and 2)
- Genshin Impact
B. Competitive Games
Unlike the previous type, competitive games do not offer the option for players to work together. Instead, they focus on player-versus-player (PvP) combat. Competitive games can also be divided into two categories.
- Esports Titles: Games that have an established competitive scene and professional tournaments. Examples:
- Tekken series
- Street Fighter series
- Gran Turismo
- Assetto Corsa
- Non-Esports Competitive Games: Games that include competitive multiplayer but do not have a structured esports scene. Many mobile fighting and racing games fall into this category.
C. Co-op & Competitive Games (Hybrid)
This category combines cooperative and competitive gameplay. Most MMOs fall into this category since they allow both PvE (Player vs Environment) and PvP (Player vs Player) modes.
However, many players don’t realize that team-based esports games also belong in this category. MOBA games (MLBB, Dota 2, League of Legends) and team-based FPS games (VALORANT, Counter-Strike) are prime examples.
This is why solo queue in ranked play often leads to frustrating experiences—these games are fundamentally designed for team coordination, not solo play.
This category can also be divided into two subcategories:
- Esports Titles:
- MLBB, Dota 2, VALORANT
- Non-Esports Titles:
- World of Warcraft
- Many other MMOs with both PvE and PvP elements
D. Asynchronous Multiplayer Games
Many games in this category may appear to be singleplayer, but they involve indirect multiplayer interactions. Players do not play together in real time but can see leaderboards, interact through in-game systems, or compete in ghost-based challenges.
Examples include:
- Candy Crush Saga
- Survivor.io
- The Sims FreePlay
- FarmVille
This category is distinct from singleplayer games because it requires completely different game structures and features. The target audience and market dynamics are also very different.
4. Genre-Based Categorization
Since this article is already quite long, I’ll keep this part brief—especially since game genres have become increasingly arbitrary, oversaturated, or even misused to the point where they no longer have clear definitions.
For example, “RPG” and “Action RPG” are terms that have been stretched so much that they now cover vastly different gameplay experiences. Some game publishers loosely apply genre labels to their games, making classification even harder.
Another issue with genre-based categorization is that many games fit into multiple genres.
- The Borderlands series is both an FPS and an RPG.
- Fortnite is a shooter and a Battle Royale game.
Because of this, genre classification is helpful for understanding broad market trends, but it’s often insufficient on its own.
For reference, here are some common video game genres:
- Action
- Action RPG
- cRPG (Classic RPG)
- FPS (First-Person Shooter)
- Battle Royale
- MOBA
- Roguelike
- Bullet Heaven
- Casual Games
Closing
Once again, I emphasize that the gaming industry is incredibly complex. No article—even one with over 2,000 words—can fully explain it unless you have firsthand experience playing and studying the games.
However, I hope this article helps you navigate the gaming industry better.