An Inside Look at the 10 Largest Video Game Companies Ruling the Growing Gaming Industry
The video game industry has accelerated into the stratosphere, estimated to be worth over $300 billion globally as of 20221. Driven by mega-hits across consoles, PC, and mobile platforms – video games have thoroughly infiltrated mainstream entertainment.
As the gaming market swells year after year, a select group of powerhouse companies have emerged as the driving forces responsible for this explosive growth. In this guide, we will explore the 10 largest video game companies worldwide based on revenue and valuation. For each company, we’ll spotlight their history, most impactful game franchises, major acquisitions, contributions that elevated gaming, future outlook, and more.
Let’s jump in!
#1 – Tencent: Mobile Gaming Behemoth Worth Over $560 Billion
China-based tech conglomerate Tencent tops the list as the largest video game company on Earth with 2021 gaming revenue exceeding $31.6 billion1.
Background
Founded in 1998, Tencent has grown into the world’s biggest video game publisher by focusing intensely on smartphone gaming3. Home to 1.01 billion mobile internet users, China presents uniquely massive opportunities in mobile that Tencent continues maximizing.
Beyond in-house development and publishing, the company holds equity stakes in many leading gaming firms:
- 100% ownership in Riot Games (League of Legends)
- 40% stake in Epic Games (Fortnite)
- 5% stake in Activision Blizzard (Call of Duty, World of Warcraft)
- 5% stake in Ubisoft (Assassin’s Creed)
This investment portfolio diversity provides great exposure to rising sub-sectors like competitive esports and western markets.
Gaming Hits
While little known outside Asia, Tencent games like Honor of Kings (Arena of Valor), PUBG Mobile, and Clash of Clans boast absolutely staggering player-bases and revenue, cementing the company’s mobile dominance.
Killer Acquisitions
Tencent has a keen eye for scooping up rising talent, securing full ownership of ascending developers like Supercell (Clash Royale) and Riot Games which both operate with creative autonomy.
Outlook
Sitting on a mountain of mobile gaming data and development talent, Tencent will likely continue its strategy – acquiring rising teams for creative franchises while leveraging its unrivaled size to improve monetization.
With a staggering market cap exceeding $560 billion as of March 20222, Tencent still has ample growth runways through foreign expansion and additional investments.
#2 – Sony Interactive Entertainment: Playstation Brand Approaching 600 Million Consoles Sold
Japanese tech giant Sony snags runner-up status thanks largely to its tremendously successful PlayStation console brand, generating over 95% of 2021’s $25 billion gaming revenue3.
Background
Sony Computer Entertainment was formed in 1993 after Ken Kutaragi convinced Sony executives to enter the video game market. The original PlayStation released in 1994 started an unprecedented run topping over 102 million units sold. Successive generations PS2, PS3, PS4 continued market dominance – soon approaching 600 million PlayStations sold cumulatively!
Sony’s internal studios are responsible for acclaimed franchises like God of War, The Last of Us, Spiderman and Uncharted – cementing its reputation for cinematic masterpiece games.
Gaming Hits
Sony marches into 2022 on a high note as the PlayStation 5 console repeatedly breaks sales records despite supply issues. System-sellers like Spiderman: Miles Morales and Horizon Forbidden West continue showcasing PlayStation’s industry-leading single-player experiences.
Notably, Sony is doubling down on service-based gaming with the new PlayStation Plus subscription which combines the PlayStation Now cloud streaming library with monthly downloads.
Killer Acquisitions
Sony turns heads by acquiring a laundry list of high-profile developers including Bungie (Halo, Destiny), Haven Studios led by Jade Raymond, plus support studios Firesprite and Nixxes. These deals bolster Sony‘s live service capabilities while bringing beloved IP like Destiny under their umbrella.
Outlook
With the PlayStation 5 selling faster than any previous generation3, Sony is capitalizing on the momentum by ramping first-party development dramatically. By supplementing blockbuster narrative games with a Netflix-style back-catalogue subscription, PlayStation gamers have never had more—or better—options.
Given Sony‘s continual industry leadership the past 3 decades, PlayStation 6 launches will likely continue breaking records down the road.
