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A video game is an electronic game that involves interaction with a user interface or input device (such as a joystick, controller, keyboard, or motion sensing device) to generate visual feedback from a display device, most commonly shown in a video format on a television set, computer monitor, flat-panel display or touchscreen on handheld devices, or a virtual reality headset, hence the name. However, not all video games are dependent on graphical outputs; for example, text adventure games and computer chess can be played through teletype printers. Most modern video games are audiovisual, with audio complement delivered through speakers or headphones, and sometimes also with other types of sensory feedback (e.g., haptic technology that provides tactile sensations), and some video games also allow microphone and webcam inputs for in-game chatting and livestreaming.
Video games are typically categorized according to their hardware platform, which traditionally includes arcade video games, console games, and computer (PC) games; the latter also encompasses LAN games, online games, and browser games. More recently, the video game industry has expanded onto mobile gaming through mobile devices (such as smartphones and tablet computers), virtual and augmented reality systems, and remote cloud gaming. Video games are also classified into a wide range of genres based on their style of gameplay and target audience.
The first video game prototypes in the 1950s and 1960s were simple extensions of electronic games using video-like output from large, room-sized mainframe computers. The first consumer video game was the arcade video game Computer Space in 1971. In 1972 came the iconic hit game Pong and the first home console, the Magnavox Odyssey. The industry grew quickly during the "golden age" of arcade video games from the late 1970s to early 1980s but suffered from the crash of the North American video game market in 1983 due to loss of publishing control and saturation of the market. Following the crash, the industry matured, was dominated by Japanese companies such as Nintendo, Sega, and Sony, and established practices and methods around the development and distribution of video games to prevent a similar crash in the future, many of which continue to be followed. In the 2000s, the core industry centered on "AAA" games, leaving little room for riskier experimental games. Coupled with the availability of the Internet and digital distribution, this gave room for independent video game development (or "indie games") to gain prominence into the 2010s. Since then, the commercial importance of the video game industry has been increasing. The emerging Asian markets and proliferation of smartphone games in particular are altering player demographics towards casual gaming and increasing monetization by incorporating games as a service.
Today, video game development requires numerous interdisciplinary skills, vision, teamwork, and liaisons between different parties, including developers, publishers, distributors, retailers, hardware manufacturers, and other marketers, to successfully bring a game to its consumers. As of 2020, the global video game market had estimated annual revenues of US$159 billion across hardware, software, and services, which is three times the size of the global music industry and four times that of the film industry in 2019, making it a formidable heavyweight across the modern entertainment industry. The video game market is also a major influence behind the electronics industry, where personal computer component, console, and peripheral sales, as well as consumer demands for better game performance, have been powerful driving factors for hardware design and innovation.