Introduction
Canada has long been recognized as a nation of gamers, with its residents embracing interactive entertainment across PC, console, and mobile platforms. However, new research from Epyllion, the consulting firm led by renowned analyst Matthew Ball, reveals a startling transformation in Canadian entertainment habits. Between 2018 and 2022, Canada lost approximately one in six adults who regularly played video games before the COVID-19 pandemic . This dramatic exodus represents hundreds of thousands of former players who have redirected their time and money to alternative forms of digital entertainment. The Canadian market, once considered a reliable growth territory for game publishers, now serves as a cautionary example of how quickly consumer behavior can shift in the attention economy. This article explores the factors behind this decline, the platforms benefiting from gaming’s loss, and what the future holds for the industry in the Great White North.
The Scale of Canada’s Gaming Decline
The numbers from Matthew Ball’s comprehensive 164-page report paint a concerning picture for Canada’s gaming ecosystem. Among the eight mature markets studied—the United States, Japan, United Kingdom, Germany, France, Canada, South Korea, and Italy—Canada experienced one of the most severe contractions in player participation . The loss of one in six pre-pandemic adult players represents a demographic shift with profound implications for game developers, retailers, and platform holders operating in the Canadian market.
This decline becomes even more significant when viewed in the context of Canada’s overall population. Unlike some other mature markets that have maintained stable player bases, Canada’s gaming community has contracted despite the country’s growing population and high levels of digital connectivity. The players who have left aren’t being replaced by younger generations at the same rate, creating a demographic gap that will take years to address.
The financial impact of this exodus extends beyond Canada’s borders. When players in mature markets reduce their gaming time, global revenue suffers. The report indicates that PC and console gaming consumption across these eight countries has fallen approximately 8%, translating to $2.3 billion in lost revenue . For Canadian game developers—and there are many, from major studios in Montreal and Vancouver to independent creators across the country—this contraction means competing for a smaller pool of domestic consumer spending.
Where Did Canadian Players Go?
Understanding why Canadian players have abandoned gaming requires examining the alternative entertainment options that have captured their attention. Matthew Ball’s research identifies several categories of digital activity that have grown explosively while gaming participation has declined .
Short-form video platforms represent perhaps the most direct competitor for gaming time. TikTok and similar services offer endless streams of brief, engaging content designed to trigger rapid dopamine releases. Unlike games, which often require significant time investment and cognitive engagement, short-form video can be consumed in brief moments throughout the day. The format’s addictiveness has proven particularly effective at capturing former gamers who once filled their evenings with extended play sessions.
Adult content platforms have also siphoned significant attention and spending away from gaming. OnlyFans and similar creator economy platforms generated approximately $5 billion in US consumer spending during 2025 . While separate Canadian figures weren’t provided, the platform’s popularity extends across North America, with many former gaming consumers redirecting subscription budgets to content creators.
Sports betting and iGaming have experienced explosive growth since the expansion of legal gambling options across North America. User losses on these platforms in the US now exceed $17 billion annually, representing money that might previously have been spent on games, hardware, or in-game purchases . The convenience of mobile betting apps, combined with aggressive marketing during sporting events, has normalized gambling for a generation of young adults.
AI applications focused on roleplay and entertainment have approached one billion downloads globally . These tools offer interactive experiences that compete directly with gaming’s traditional value proposition—providing engaging, responsive digital environments. For some users, conversing with AI characters has replaced the social interaction they once sought in multiplayer games.
The Demographics of Departure
The players leaving gaming aren’t evenly distributed across all demographic groups. Research indicates that men aged 18-35—traditionally gaming’s core audience—are also the heaviest users of competing platforms . These individuals are up to twice as likely to identify as gamers compared to the general population, but they’re 3.6 times more likely to use short-form video apps, OnlyFans, AI applications, and prediction markets .
This demographic overlap creates a zero-sum competition for attention. Every hour a young Canadian man spends scrolling TikTok or placing sports bets is an hour he isn’t playing Call of Duty or EA Sports FC. For game publishers, this means their most valuable customer segment now has more entertainment options than ever before, each designed by highly sophisticated technology companies competing for the same limited resource.
Impact on Canadian Game Development
Canada’s gaming industry has grown substantially over the past two decades, with major studios establishing operations in cities like Montreal, Toronto, and Vancouver. The country produces globally successful franchises and employs thousands of developers. However, the contraction in domestic players creates challenges for this ecosystem.
Canadian developers increasingly rely on international audiences, particularly in the United States and Asia, to achieve commercial success. While this global focus makes business sense, it also means Canadian players’ preferences receive less attention from studios prioritizing larger markets. The domestic market, once a reliable testing ground and revenue source, has diminished in strategic importance.
For independent Canadian developers, the situation is more acute. Smaller studios often rely on local communities for early support, word-of-mouth marketing, and grassroots enthusiasm. A shrinking domestic player base means fewer potential customers for indie games, making it harder for new studios to gain traction before expanding internationally.
The Mobile Exception
While PC and console gaming has suffered in Canada, the mobile gaming segment has proven more resilient. Mobile game spending remains higher than pre-pandemic levels and has actually exceeded console spending in some mature markets . However, even mobile’s growth has slowed significantly, with year-over-year increases flattening since 2025 .
Mobile gaming’s relative stability reflects its different usage patterns. Mobile games are often played in short sessions throughout the day, competing directly with social media and short-form video for attention. The format’s accessibility and low time commitment make it more compatible with modern fragmented attention spans than traditional console or PC gaming.
Conclusion: Adapting to the New Reality
The decline in Canadian gaming participation represents not a temporary fluctuation but a fundamental restructuring of the entertainment landscape. Gaming now competes with a diverse array of digital options, each optimized for maximum engagement. For Canadian players who remain active, this competition may ultimately benefit them, as publishers work harder to retain their attention with higher-quality experiences and more compelling content.
For the industry as a whole, Canada’s experience offers valuable lessons about the importance of understanding broader entertainment trends. Game developers must now consider themselves competitors not just with other games but with TikTok, sports betting apps, and AI platforms. Those who succeed will be the ones who best understand what modern audiences want and how to deliver it in an increasingly crowded attention marketplace.