The report also finds that video games are increasingly a social activity, with more than three-quarters of gamers under 25 engaging in virtual conversations with other players
SYRACUSE, N.Y., April 23, 2025 /PRNewswire/ — KS&R, an industry-leading strategic consultancy and marketing research firm, today announced the availability of a free report, Game On: Unleashing New Opportunities in the Gaming World. Based on KS&R’s nationwide survey of 3,650 consumers ages 13–76, the report explores how gamer preferences are evolving and identifies the biggest emerging opportunities in the gaming industry.
Upon analyzing the data, KS&R identified important trends, including the following:
Microtransactions: Big profits from small spends
The survey found that 30% of gamers aged 18–41 have recently purchased in-game content such as skins, battle passes, and XP boosts, while playing free-to-play games. These frequent, small purchases are becoming a cornerstone of gaming monetization strategies, transforming how developers and publishers think about revenue generation.
Many players now view these purchases as a regular part of their entertainment budget, and as gamers allocate more money to in-game purchases, there may be a corresponding decrease in spending on other forms of entertainment.
Augmented Reality (AR) games: The next big thing
Augmented Reality (AR) games are growing in popularity, but KS&R found that nearly 4 in 10 (39%) of gamers aged 18–41 are still not familiar with them. Increasing awareness among gamers about the AR gaming experience could open up new opportunities for growth, as 40% of those who learn about AR games say that they would enjoy playing them.
“Developers and marketers need to showcase to gamers the unique and engaging experiences that AR games can provide,” said Jennifer Longo, Telecom, Entertainment and Recreation Director at KS&R. “They have a big opportunity to attract a broader audience and drive growth with AR, expanding the reach of gaming into new demographics.”
Video games are social activities, especially for younger gamers
Online gaming is a deeply social activity, and player conversations while gaming are now a core part of the experience. Through voice, text, and video chat, players connect, strategize, and build communities. Overall, more than half of gamers engage in virtual conversations while playing, and engagement is even higher among younger gamers.
The following age groups in the survey said they engage in social conversations with other gamers while playing:
There is a clear demand for specialized communication tools for the gaming community. Discord has become popular for gaming chats, but many players still use more general apps such as FaceTime. There’s a big opportunity for developers of communications tools that cater specifically to gamers.
“Video games make up a huge chunk of the typical consumer’s entertainment budget, and the sector becomes more important the younger the gamer is,” Longo said. “It’s a big industry, generating high revenue, but our research shows that there are still big opportunities for further growth.”
To read the full report, visit https://www.ksrinc.com/wp-content/uploads/2025/04/KSR_Gaming-Media-Report-04.09v.pdf
About KS&R
KS&R is a nationally recognized strategic consultancy and marketing research firm that provides clients with timely, fact-based insights and actionable solutions through industry-centered expertise. Specializing in Technology, Business Services, Entercom & Recreation, Healthcare, Retail & E-Commerce, and Transportation & Logistics verticals, KS&R empowers companies globally to make smarter business decisions. For more information, please visit www.ksrinc.com.
SOURCE KS&R
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