The Shifting Spotlight: Why AI Is Outshining Gaming
tl;dr: AI is growing faster than gaming.
In a recent conversation with a blockchain gaming startup, I found out that investors are increasingly shifting their focus away from blockchain gaming and toward artificial intelligence (AI). While I’ve long believed blockchain could revolutionize gaming — especially in areas like in-game asset ownership and decentralized economies — the reality is that crypto-driven gaming has left many players and token holders with a sour taste. But this investor pushback isn’t just about blockchain games’ missteps; it’s reflective of a larger trend: AI is rapidly gaining momentum across industries, overshadowing gaming in many ways.
Below is an overview of what the data says about AI and gaming, including a look at Google Trends and revenue forecasts, followed by why it appears investors and the broader tech community are more excited about AI’s potential growth than gaming’s near-term stability.
Google Trends: AI, Gaming, Game, Minecraft
I wanted to confirm whether people’s online searches reflect this shift.
Using Google Trends, I checked:
- “Gaming” vs. “AI”: Surprisingly, AI outperforms “gaming” in search popularity and is growing faster.
- “Game” vs. “AI”: “Game” ranks higher than “gaming” and, for now, can rival “AI” in overall search volume — yet the growth rate for AI-related searches is much steeper.
- “Minecraft” vs. “AI”: One of the best-selling and most popular games of all time, “Minecraft,” does show strong search presence, but still trails behind both “AI” and “game.”
The key takeaway? Interest in AI is increasing more rapidly than interest in gaming overall. While search terms aren’t a perfect proxy for market trajectory, these trends echo the sentiment that AI is quickly capturing mindshare.
Gaming Revenues: Slower but Steady Growth
Let’s look at some numbers on gaming’s recent performance and outlook:
- 2023 Revenues: Gaming revenues stabilized at about $183.9 billion, effectively flat compared to 2022. This signalled the end of a brief post-pandemic slump.
- 2024 Projections: Newzoo data expects the global games market to reach $187.7 billion, or about a +2.1% year-on-year increase.
- 2025 and Beyond: Forecasts suggest a modest acceleration, with a rebound to $207 billion by 2026 and potential for over $213 billion by 2027. This implies a fairly conservative growth rate (~3% CAGR).
In simpler terms, the global games industry remains massive but no longer sees the explosive double-digit gains it enjoyed during the pandemic boom. Gaming is also heavily consumer-facing (i.e., primarily B2C entertainment), so revenue growth is often tied closely to discretionary spending and large franchises’ success.
AI Revenues: Exponential Climb
By contrast, AI’s market expansion looks far more dramatic:
- 2024 Market Size: Global AI market estimates range between $180 and $230+ billion. This is already nearly on par with the gaming sector but growing much faster.
- 2030 Outlook: Even conservative forecasts place the AI market well above $800 billion by 2030, with some projections going as high as $1.3 trillion at a ~35% CAGR.
- 2034 Forecasts: Analysis from Polaris Research (and others) suggests jumping from $235 billion in 2024 to $3.58 trillion by 2034 — an annual growth rate of roughly 31% for a full decade.
The difference here is striking. AI’s adoption is still in relatively early stages, spanning nearly every industry — healthcare, finance, retail, automotive, manufacturing, and more. Each sector invests heavily in AI for efficiency, analytics, automation, and advanced research. This broad, B2B-driven demand propels AI spending far faster than what we see in consumer entertainment.
Why AI Growth Looks More Promising
- Market Penetration: Gaming already has a wide user base; the majority of internet users play some form of game. AI, however, is far from saturation and potentially near-endless use cases.
- Revenue Streams: Gaming primarily earns from consumer purchases, subscriptions, and in-game microtransactions. AI solutions, on the other hand, attract massive enterprise budgets; companies see AI as a strategic multiplier that can reduce costs and unlock new revenue streams.
- Innovation Pace: AI is still revealing new frontiers (generative models, robotics, AI-driven analytics, etc.), driving fresh investment. Gaming innovation, while ongoing, is comparatively incremental and tied to established business models.
What It Means for Blockchain Gaming
While the concept still excites a niche segment, widespread adoption has been slow (I don’t wholly believe DAU numbers). Investors are understandably cautious when broader gaming revenue is growing slowly.
That’s not to say blockchain gaming won’t see a resurgence — particularly if new, stable tokenomics models emerge and perhaps by necessity a focus on real revenues.
Concluding Thoughts
When you look at both Google Trends and revenue data side by side, it’s clear why AI is the new darling of investors: Its market potential and growth rate surpass gaming’s trajectory, especially post-pandemic. Gaming, as an industry, is far from stagnant — there’s still a steady climb. But AI, with its broad enterprise adoption and massive R&D investments, offers much larger upside in the next decade.
For developers and entrepreneurs, there’s an important lesson here: Keep an eye on where the exponential growth is happening. While gaming remains a lucrative and influential entertainment sector, AI’s influence is exploding across nearly every industry. Whether you’re building the next blockchain game or pivoting to AI solutions, understanding these trends is critical to staying ahead in a rapidly evolving tech landscape.
