Why Watch When You Can Play?

A 16-year-old anxiously stares at his phone. Then, relief—she said yes. The date is set. That evening, he will take the girl of his dreams out for the first time. Naturally, they’ll go to the cinema, accompanied by a group of friends to mask his true intentions. In the hours leading up to the outing, he channels his nervous energy into a quick round of Call of Duty.

Fast forward ten years. Now 26, he lives alone. The girlfriend has long since moved on, and his circle of friends has shrunk post-university. The idea of going to the cinema? Too much effort. Asking someone to join? Even harder. And let’s not forget the cost. Far easier to switch on the Xbox and fall asleep to another round of Call of Duty.

When Baby Boomers discuss youth culture, they default to film—cinema was their formative medium. Some still refuse to acknowledge just how unwatchable Easy Rider really is, clinging to its cultural significance rather than its narrative coherence. But for Millennials, and even more so for Gen Z, video games are the defining medium. The digital natives, key demographic groups raised on both computers and smartphones, have long since shifted their engagement away from films.

Films vs. Games: David vs. Goliath

The numbers reflect this shift. While Hollywood never fully recovered from COVID-19, the industry’s decline predates the pandemic. Box office revenues peaked at $42.3 billion in 2019, but by 2023 had rebounded to around $34 billion. Even this growth, however, was largely fueled by expansion in the Asian market over the previous decade. Meanwhile, production budgets have skyrocketed, raising the stakes for each new release.

Gaming as the Storytelling Medium of the 21st Century

Gaming’s ascendancy among younger audiences is hardly surprising. Since the early 2000s, video games have strived for a cinematic experience. Once reliant on animated cutscenes for narrative flair, games now feature fully realised storylines and immersive worlds, often rivaling Hollywood’s narrative depth. Today, leading actors lend their voices and motion-capture performances to game characters. Nowhere is the industry shift more apparent than in the fact that George R.R. Martin, struggling to finish A Song of Ice and Fire, instead dedicated himself to shaping the lore of Elden Ring.

The notion that games are at least potentially an art form is no longer dismissed—it is now a mainstream industry talking point. Veteran developers like Tim Schafer openly argue that games are “the new novels,” offering not just stories, but experiences that players shape themselves. This interactive element fosters a level of emotional engagement beyond passive viewing.

The Waiting Game for the Next Crash

But is gaming really delivering deeper emotional experiences? The numbers suggest otherwise. Despite the “games as art” rhetoric, much of the industry’s explosive growth owes itself not to narrative ambition, but to aggressive monetisation. Microtransactions, once confined to mobile freemium games, now dominate even AAA titles.

This raises an uncomfortable question: how sustainable is gaming’s meteoric rise? Many of its most lucrative revenue streams—particularly loot boxes and gambling-adjacent mechanics—are just one legal ruling away from collapse. Meanwhile, gaming faces the same creative stagnation that plagues Hollywood. Budgets are ballooning (Grand Theft Auto VI is rumoured to exceed $1 billion), yet risk-averse studios churn out franchise sequels rather than innovating. The indie scene provides some creative respite, but mainstream gaming remains formulaic.

Gaming’s underlying crisis simmers beneath the surface. The past few years have seen mass layoffs across the industry, and speculation of an impending gaming crash—akin to the infamous 1980s industry collapse—is growing. Each uninspired franchise sequel edges the industry closer to its breaking point. Ironically, the biggest franchise of them all—Grand Theft Auto—might be the catalyst. If its upcoming installment fails to meet expectations, it could trigger a domino effect.

A Future Without Films or Games?

Will gaming continue to overshadow Hollywood? Perhaps, but its growth remains volatile. An estimated 83.6% of people over 16 worldwide engage with video games in some form. But those expecting East Asia—home to gaming giants like Japan, South Korea, and China—to top the rankings are in for a surprise. Instead, it is Southeast Asia (the Philippines, Indonesia) and the Arab world (Saudi Arabia, UAE) where over 90% of the population plays. Japan, despite its foundational role in the industry, ranks last at 64,4%.

Japan’s case is particularly revealing. As one of gaming’s earliest adopters, it remains a global powerhouse through exports from Sony and Nintendo. Yet, domestic engagement is notably low. South Korea, famous for its esports scene, similarly underperforms in gaming

Are these nations—once early, intensive adopters—signposting the future? A shift away not just from cinema, but from gaming as well? The West has yet to experience such a shift, but an industry collapse could accelerate it. When that moment arrives, it will only be a matter of time until consumers will inevitably seek a new obsession. Japanese culture, despite it’s openness to technological innovation, also embraces traditional hobbies and crafts. Statistics show that other than video games and movies, the ever popular mangas, but also more traditional hobbies such as travelling and even things like reading, crafting and even calligraphy have an enduring place in Japanese society. Maybe the way forward for the West will also lie in the rediscovery of such elements.

Statement

Hollywood’s cultural dominance is waning as gaming surges ahead. Box office revenues have stagnated, while gaming now generates $184.4 billion annually. Youth engagement is shifting—cinema struggles to retain audiences, whereas gaming binds players across generations. Once emulating film, games now rival Hollywood in narrative depth, yet their explosive growth is fueled by microtransactions rather than storytelling. The industry mirrors Hollywood’s bloat: billion-dollar budgets, franchise fatigue, and looming overproduction. With layoffs mounting and a gaming crash whispered, Japan’s declining gaming engagement hints at the future. The next crash is coming and what follows after may be neither game nor movie.

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