In 1980, American youth raced to their television sets on Saturday mornings, not for cartoons, but to play Space Invaders on their Atari 2600s. Fast forward to today, where players worldwide coordinate across time zones to join massive multiplayer matches in Fortnite’s shared virtual world, using devices ranging from smartphones to gaming consoles. The contrast is staggering in comparison to a mere 44 years ago. This then begs the question: how did what began as a hobbyist pursuit in the 1960s evolve into a $100 billion ecosystem in the United States alone, surpassing both film and music combined?
This was the question I was seeking to answer when I applied for the Research Fellowship at The Strong National Museum of Play. Not only is it a relevant research question, but it has been the focus of industry leaders for decades. Through examining the Game Developers Conference (GDC) collection, specifically the keynote speeches dating back to 1998, I discovered industry leaders consistently grappling with two questions: “What does the future hold?” and “How can we shape it?” In their addresses, the leading figures of Sega, Microsoft, Naughty Dog, Nintendo, Sony, and more presented their vision of gaming’s future, hoping to rally developer and consumer support.
My research uncovered that the evolution of the video game ecosystem is rooted in a pattern of mutual adaptation and the emergence of complementary interactions among various stakeholders. Drawing from past successes, failures, and shared knowledge, contributions flow from diverse members of the ecosystem, all aiming to enhance or innovate play. I explored a rich array of records, catalogs, artifacts, and books, including materials from the Game Developers Conference, the Toys for Bob collection, From Sun Tzu to Xbox by Ed Halter, and the Indie Games collections. I discovered that innovations requiring adjustments from other ecosystem players often pave the way for new complementary interactions, driving this evolution forward. Three examples from The Strong’s collections particularly highlight this phenomenon:
The CD-ROM Revolution
When Sony introduced the PlayStation in the mid-1990s, its CD-ROM format represented more than a technical upgrade—it demanded fundamental changes in game development practices. Developers had to master new tools and workflows, while entertainment companies found fresh opportunities to integrate music and video. This mutual adaptation led to dramatic improvements in gaming’s audio-visual quality and storage capacity, while significantly reducing production costs.
Toys-to-Life Innovation
Studying the Toys for Bob collection revealed how one company’s innovation rippled through the entire ecosystem. Their Skylanders franchise introduced physical toys that players could digitize into their games using a special portal and RFID technology. This required new partnerships with toy manufacturers like Creata, and created an entirely new gaming genre, “toys-to-life.” The success prompted industry giants Nintendo and Disney to develop their own versions, demonstrating how innovation drives ecosystem-wide adaptation
The CrossPlay Challenge
Through GDC records and industry documentation, I traced the impact of Epic Games’ push for CrossPlay functionality in Fortnite, a significant disruption in the video game ecosystem. This innovation not only built upon advancements in server technology and high-speed internet connectivity but also required an unprecedented relinquishing of power from competing platform holders, such as Sony, Microsoft, and Nintendo. By enabling users to play together in a shared game environment—regardless of their platform, (e.g. Windows PC, iOS, or Xbox)—CrossPlay transformed the gaming experience. Although this adaptation faced initial resistance and legal challenges, it ultimately reshaped business models and inter-platform relationships across the industry, paving the way for new interactions and monetization strategies, including the freemium model and live-service structures.
My time at The Strong illuminated the clear patterns in gaming’s evolution, characterized by technical advancements, societal shifts, and business adaptations. From the transition to digital distribution to the rise of cloud gaming, these technical innovations open new possibilities. Meanwhile, social changes—such as the emergence of esports and content creation platforms—have redefined gaming’s cultural significance. Business innovations, including new monetization models and distribution strategies, have transformed how value is created and captured within the industry. These patterns are still unfolding today. The Strong’s extensive collections offered invaluable insights into how these adaptations interconnect, shaping the vibrant gaming ecosystem we know today. Thank you so much for the opportunity!
By: Kalan Horton, 2025 Strong Research Fellow