Video Games Face Declining Attention Amidst Rising Alternatives

Feb 22, 2026, 2:35 AM

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The gaming industry is experiencing a significant shift in consumer attention, as highlighted in a recent report by Epyllion, led by industry expert Matthew Ball. This comprehensive analysis reveals that spending and interest in video games are declining in favor of alternative digital entertainment options such as online gambling, social media, and cryptocurrency platforms.

Since the pandemic, the landscape of gaming has changed dramatically. The report notes that key markets, including the United States and Canada, have seen a reduction in their gaming populations, resulting in an 8% drop in spending on PC and console games, equating to a loss of approximately $2.3 billion. In contrast, mobile gaming has managed to maintain a slight growth, with spending increasing by 12% compared to 2020.

Competing for Attention

Emerging sectors are increasingly capturing the attention of consumers who were once dedicated to video gaming. According to Epyllion’s findings, there are seven notable alternatives diverting attention from traditional gaming: social media platforms like TikTok, creator porn platforms such as OnlyFans, AI-driven applications, cryptocurrency trading, prediction markets, and online gambling.

The report indicates that spending on these alternatives has surged. For example, collective spending on OnlyFans, online betting, and iCasinos has risen by approximately $31.6 billion since 2019, overshadowing the $12.9 billion increase in video game software spending in the same period. This dynamic suggests a concerning trend for video game publishers who are struggling to retain player engagement.

The Impact of Online Gambling

Online gambling, particularly sports betting, has emerged as a major competitor for gaming. The Epyllion report highlights that net losses from sports betting in the US reached $17 billion in 2025, a substantial increase from previous years. Furthermore, iGaming has not only doubled the growth rate of mobile casino games but also now accounts for approximately 21% of all video game spending in the US.

This shift in consumer spending reflects a broader trend where individuals, particularly younger men aged 18 to 45, are more likely to engage with online gambling and creator porn than traditional video games. The report notes that these individuals represent a significant portion of the core gaming demographic, suggesting a potential long-term challenge for the gaming industry.

Adapting to New Trends

As players increasingly turn their attention to more interactive and engaging forms of entertainment, the gaming industry faces the pressing challenge of adapting. The report suggests that gaming publishers may need to explore innovative avenues to attract and retain their audiences.

One potential direction is the incorporation of more personalized gaming experiences, akin to the interactivity found in creator pornography and AI-driven platforms. For instance, Sony has experimented with AI chatbots based on popular game characters, allowing players to interact in real-time conversations. This could represent a new frontier in gaming, one that emphasizes interactivity and personalization to compete with the allure of alternative entertainment.

Despite these challenges, there remains a substantial opportunity for the gaming industry to evolve. As the market becomes increasingly fragmented, it will be crucial for publishers to identify and leverage the unique aspects of gaming that distinguish it from other forms of digital entertainment.

The Epyllion report serves as a wake-up call for the gaming industry, emphasizing the need for innovation and adaptation in an ever-changing digital landscape. Without a strategic response to these emerging competitors, the industry may continue to see a decline in its audience and spending, challenging its future viability.

In conclusion, the landscape for video games is shifting, and the industry must navigate these new challenges to remain relevant in the face of growing competition from online gambling, social media, and other alternative entertainment platforms. The time for innovation is now, as the future of gaming hangs in the balance.

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