Globant says gaming’s next phase will be built on cloud, AI, and control — not hype
Globant says the next phase of gaming will be shaped less by spectacle and more by infrastructure, automation, and trust — a shift that is already underway across global markets and accelerating in the Middle East.
In its newly released Game On report, the company argues that 2026 will mark a structural reset for the gaming industry. Not because players want radically different games, but because the systems that build, distribute, and regulate those games are being rebuilt at the same time.
Global gaming revenues are expected to reach $189 billion this year, according to Newzoo, while the Middle East gaming market is projected to grow to $9.57 billion by 2030 at a compound annual growth rate of nearly 13%. That growth, the report suggests, is being driven by a convergence of portable hardware, cloud infrastructure, artificial intelligence, and creator-led discovery — forces that are reshaping both how games are made and how audiences find them.
The report identifies five structural shifts that will define the next era of gaming.
The first is a platform realignment. Gaming is moving away from fixed consoles toward handheld, hybrid, and cloud-based systems, with continuity across devices becoming more important than raw processing power. In the Middle East, cloud gaming is projected to grow from $1.25 billion in 2025 to $7.85 billion by 2031, supported by rapid expansion in Gulf data-centre capacity to meet latency demands.
The second is the quiet normalisation of AI inside game studios. According to the report, 97% of developers already use AI in some form, primarily for asset creation, testing, and localisation. Used carefully, AI reduces production bottlenecks rather than replacing creative roles. But it is also becoming a financial lever. Following its acquisition by a Gulf investment group, Electronic Arts publicly stated it would use AI to streamline operations and cut costs — a signal to investors that automation is now embedded in publisher strategy, not experimental tooling.
The third shift is where growth comes from. Instead of chasing new audiences, studios are leaning into retention — live services, expansions, remasters, and legacy franchises that keep players inside long-running ecosystems. In MENA, that strategy is reinforced by state-backed investment. Saudi Arabia’s Esports World Cup, with a prize pool exceeding $70 million, and the UAE’s push to support more than 70 studios under AD Gaming reflect a broader effort to anchor gaming as a long-term economic pillar rather than a consumer fad.
Discovery, meanwhile, has moved out of the hands of publishers. Platforms like TikTok, YouTube, and Twitch now dominate how players find new games, turning creators into distribution channels and, increasingly, co-developers. User-generated content ecosystems are no longer peripheral — they are central to monetisation and engagement strategies.
Finally, regulation is tightening. Governments are paying closer attention to loot boxes, gacha mechanics, and opaque AI-driven systems, particularly where psychological risk and monetisation intersect. Trust, the report argues, is becoming a design constraint rather than a compliance afterthought.
“Industry consolidation remains one of the most influential forces shaping gaming. Large acquisitions will continue to redefine the competitive landscape well into the next decade,” said Kevin Janzen, CEO of Globant’s Gaming & EdTech AI Studio. “At the same time, smaller development teams are proving capable of producing blockbuster-level experiences — a dynamic expected to intensify by 2026.”
The Middle East features prominently in Globant’s analysis, not just as a fast-growing market but as a strategic investor. Sovereign wealth and regional capital are flowing into global publishers at the same time as local ecosystems are being built from scratch.
“Gaming is emerging as a cultural and economic force in the Middle East shaping national strategies for innovation and youth engagement,” said Federico Pienovi, CEO of MENA and APAC at Globant. “With gaming projected to contribute billions to GDP and anchor initiatives like Vision 2030, the industry is becoming a catalyst for jobs, digital infrastructure, and creative economies across MENA.”
What the report ultimately outlines is not a creative revolution, but an operational one. Studios that survive the next cycle will be those that treat AI as infrastructure, portability as default, creators as partners, and trust as a competitive advantage. The rest may find that growth projections alone are no longer enough.
The next era of gaming, Globant suggests, will not belong to the loudest launches — but to the companies that quietly rebuilt how games are made, distributed, and governed.