As 2025 closes, the games industry enters another year shaped by shifting economics, rapid advances in technology, and a volatile political climate.

Last Year: We Got Some Stuff Wrong, Some Right

Last year’s predictions focused on structural pressure points rather than specific outcomes. Many of those pressures materialized, though often faster and more unevenly than expected.

• Industry consolidation continued, largely as predicted. Capital concentrated around fewer, larger players, with foreign investment playing an increasingly visible role. What was less anticipated was how directly geopolitics would shape those transactions.
• Layoffs and studio closures also tracked closely with expectations. Cost cutting deepened across AAA publishers, and risk tolerance dropped sharply. Large studios leaned harder on established franchises and delayed or canceled experimental projects. We thought there would be a better rebound than there has been.
• Privacy and child safety regulation advanced largely as expected, but compliance proved inconsistent. Some platforms rushed implementation and introduced new security risks, while others delayed action until enforcement or public pressure forced their hand.
• Artificial intelligence evolved differently than anticipated. Adoption accelerated, but AI did not fade into the background as a quiet production tool as we might have thought. Instead, it became a visible and controversial issue.
• Platform governance became more central than predicted. Content moderation and censorship disputes arose driven by pressure from advocacy groups, payment processors, and governments.
• Transmedia and creator partnerships expanded as expected, but in more formalized ways. Creator involvement shifted from marketing support to deeper collaboration.

The Year Ahead:

Some trends unique to 2025 suggest a more turbulent period ahead. Looking across market behavior, regulatory pressure, and cultural forces, several developments appear likely to shape the legal landscape for games in 2026.

Censorship and platform moderation entered a new phase in 2025, driven as much by political advocacy as by safety concerns. Steam and Itch.io both removed or hid adult content after threats from payment partners, a move that raised questions about the line between acceptable safety controls and overbroad takedowns. Russia continued its pattern of restricting games and platforms, including a ban on Roblox for what the government described as extremist material and LGBTQ content, while other countries cited child safety issues for similar blocks. These events point to a fragmented regulatory environment in 2026, where legal requirements for content distribution will differ widely across regions. Developers and publishers working across borders will face increased pressure to understand local standards, build compliance frameworks, and evaluate the cost of fragmentation.

Privacy and security remain central concerns. The rollout of age verification tools in 2025 led to predictable challenges, including a major leak involving Discord’s verification partner that exposed private data from thousands of users. New privacy rules in multiple jurisdictions, including laws modeled on the Online Safety Act in the UK, continue to expand obligations around user data, especially for minors. Regulators have signaled greater willingness to pursue enforcement, which means more work for privacy, security, and trust and safety teams across the ecosystem. Studios of all sizes should expect increased scrutiny of age gates, data collection, retention practices, and parental consent systems.

Artificial intelligence continues to push the industry forward while raising new legal and reputational risks. The volume of AI-generated content in games is expected to grow, especially among smaller teams that rely on generative tools to accelerate development. Alongside this growth, more AI-driven low-quality titles will likely reach storefronts without meaningful review. Without new guardrails, storefront operators may face pressure to adopt clearer policies and review systems. At the same time, transparency around AI use may become a competitive factor among studios aiming to build trust with players. Larger publishers are unlikely to face significant commercial pressure over AI use. Independent and mid-sized studios, however, may feel those expectations more acutely.

Corporate consolidation reached new heights in 2025, with the acquisition of EA by Saudi Arabia’s Public Investment Fund and partners for $55 billion. The deal underscored the rising influence of foreign capital in the games economy, especially from the Middle East and Asia. Paramount’s (then Netflix, then Paramount) attempt to acquire Warner Bros., combined with ongoing investment activity from Tencent, Silver Lake, and others, suggests continued consolidation in 2026. (Though little value is being attributed to WB Games). These transactions often bring complex cross-border regulatory issues along with questions about governance, IP transfer, and foreign investment review. Smaller studios will also encounter the downstream effects, including shifts in publishing models and internal restructuring. More studio closures and layoffs, already significant in 2024 and 2025, appear likely.

Content creators and studios are continuing to work more closely together. Streamers, VTubers, and other creators increasingly invest in or co-develop game projects. These collaborations introduce legal questions around likeness rights, creator compensation, IP ownership, and endorsement rules. As creator-driven marketing becomes more central to discovery, agreements that balance creative control with regulatory obligations will grow in importance. Rules around material connections, FTC disclosures, and contractual compliance will be central features of these arrangements in 2026.

Transmedia success remains a powerful force. Films and television projects based on games continue to achieve strong results at the box office and across streaming. Studios and publishers will likely expand their transmedia efforts as a way to reach wider audiences and reinforce brand visibility. These partnerships raise familiar issues around licensing, revenue participation, creative approval, and shared ownership. They also open questions around union engagement and labor rules as more game-related projects interact with the film and television industries.

Cooperative and social games saw notable traction in 2025, with several titles finding large audiences and setting new expectations for accessible, chaotic multiplayer play. This momentum will likely continue in 2026, shaping investment and design decisions. Although these genre shifts do not directly create new legal obligations, they often change the scale of community management, safety commitments, and live operations needs. Studios operating games with active social components will continue to face legal challenges tied to moderation, user conduct, and platform rules.

Geopolitical developments are also poised to influence the industry. Trade policy remains dynamic, and tariff changes could affect hardware, components, and supply chains. Political use of game imagery reached new heights in 2025, including the use of Halo references by U.S. agencies and an AI-generated image of a political figure in Master Chief’s armor posted by the White House. As governments more openly engage with gaming culture, the intersection of IP rights and political communication may see increased attention in 2026.

Finally, delays and internal turmoil at major studios signal continued risk for large scale productions. The shift of Grand Theft Auto VI to late 2026 showed how even the most successful franchises face heightened development pressure. Financial concerns at companies like Ubisoft, which addressed a major shortfall through new investment from Tencent, illustrate how publishing and development models are evolving to meet changing expectations. These factors may push more AAA publishers toward conservative release strategies and fewer experimental projects.

The year ahead is likely to continue the industry’s cycle of rapid innovation and complex legal challenges. Content regulation, privacy, AI, cross-border investment, creator partnerships, and transmedia expansion will remain central themes. As the market grows across regions and platforms, the legal landscape around games will continue to expand in scope and complexity. Studios, publishers, and partners that anticipate these developments will be better positioned to navigate the shifting environment of 2026.