The Future of Play: Key Trends in the Games Industry for 2026

2025 was a turbulent year for the video games industry. Whilst revenues reportedly increased to nearly $200 billion (across more than 3 billion players worldwide), 2025 saw studio closures and lay-offs, high profile litigation on industry-critical issues, and an acceleration of the trend towards tighter regulation. Indeed, governments worldwide are scrutinising issues ranging from player protection (particularly for minors) and data privacy in connected gaming experiences through to platform responsibilities for user-generated content and some fundamental areas of monetisation (such as virtual currencies and loot boxes). As we enter 2026, we believe the industry will continue to see increased regulation (backed up by more enforcement activity) and rapid technological advancement (particularly, but not exclusively, in relation to AI).

This article explores the key developments expected to shape the games industry in 2026, focusing on the regulatory engine room of the UK/EU, but also bringing in an international perspective from our international offices. We explore stricter player protection measures across multiple jurisdictions, the consolidation of casual gaming’s market dominance, AI’s transition from an experimental tool to a core developmental feature, and new opportunities for foreign investment in China. 

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