Bigger, bolder, better: Entertainment hubs continue to excel as ‘third places’

For the past several years, Americans have been plagued by a “loneliness epidemic”—a powerful enough issue that the U.S. Surgeon General equates lonliness with an increased risk for premature death at levels comparable to smoking 15 cigarettes a day. 

According to a 2023 report by the U.S. Department of Health and Human Services, the loneliness epidemic has been affecting adults even before the global Coronavirus pandemic brought us further apart than ever before. Furthermore, the disappearance of third spaces in recent years has shown to have potential consequences for adult health and wellbeing. 

All is not lost, however. The revitalization of entertainment hubs has brought people together again. From spaces that cater to physical activities and sports to technology-enabled gaming locales, “playtainment” is alive and well. In 2025, the lines are increasingly blurring between entertainment, art, and branding. 

But what makes a great entertainment space? What has changed in the market in 2025? How has the rise in artificial intelligence (AI) affected the entertainment landscape? Here’s a look into the sector and its varying trends for this year. 

Tariffs and Trends in Entertainment Spaces in 2025 

As consumers increasingly prioritize immersive, shareable, and premium experiences, mixed-use developments have a unique opportunity. That is according to Nicole Rehfuss, Director of Visual Strategy, Retail, Little Diversified Architectural Consulting. 

“Think shopping and e-sports by day, transitioning to dining, live music, and movies by night,” says Rehfuss. 

In the past 12 months, Rehfuss has seen some trends in the entertainment sector take hold. Multi-use entertainment hubs thrive by being diverse, accessible, and experience-driven, appealing to rising disposable incomes and a cultural pivot from ownership to experience. 

While some entertainment spaces cater to next-generation engagement strategies like integrating AI through hyper-personalization and co-created content, others are targeted to the Gen-Z crowd who demand low-cost, tech-light “third spaces” such as malls.

While conceptualizing grand or tight-knit spaces is definitely a priority, some industry partners and clients are “proceeding with caution,” according to Rehfuss. 

“Many are deferring new store openings to 2026 and instead shifting focus toward immediate, revenue-generating strategies,” says Rehfuss. The recent tariffs announced by the Trump Administration have sent caution waves across the country. Retail corporations are prioritizing domestic production transitions, stockpiling imported goods and materials to hedge against short-term price volatility, and streamlining operations and partnerships to maintain relevance and profitability. 

“The coming months will reveal the true impact of evolving tariff policies on the bottom line,” says Rehfuss. 

Meanwhile, consumers are making more mindful purchases and emphasizing repair, refurbishment, and reconditioning to extend product life. As this “care culture” takes place, there is a growing shift that supports a preference for quality over quantity. 

In fact, “quality” is the operative word when it comes to entertainment. As entertainment venues continue to take cues from hospitality, immersive and wellness-focused experiences are top-of-mind for many. 

Fun, Food, and Fitness 

Recently, global architecture and design firm MG2 released a research report on the connection between food and entertainment. Dubbed “eatertainment,” the report outlines several key factors that go into building successful entertainment spaces. 

For the Thrill of It: Eatertainment Experiences That Cater to All suggests that successful eatertainment venues are driven by a hospitality mindset. Consumers value a multifaceted dining experience, from sit-down to self-serve. 

Many eatertainment experiences are tied to nostalgia and an activity— shuffleboard, darts, bowling, mini-golf, etc.—with a variety of consumer types participating in the fun. MG2 outlines three personas: Funclusives, Food Fanatics, and the Competitively Social. 

Funclusives are the most common persona (48% of survey respondents). They simply want to enjoy themselves and have fun. Socializing is the point. Food Fanatics (29%) expect the food offerings to be equal to or better than the entertainment experience, and Competitively Social individuals (23%) are avid fans of a particular activity—socializing and food are secondary. 

Across the board, however, each consumer craves connection and a sense of community. Every persona finds value in technology, too, even those not participating in the action. This can come in the form of tracking and scoring. This is true as long as the role of technology is additive and doesn’t detract from the connection between humans. People should be drawn to the shared narrative that technology can provide. 

That’s where immersive design comes in: An important role in capturing and maintaining the focus of others. A lot of that experience comes in the form of interior decor, audio, lighting, and other technological elements. 

“Consumers want to be immersed in the theme of the experience from the moment they walk through the door,” says Melissa Gonzalez, Principal, MG2. 

Though eatertainment excels at providing consumers with physically-based activities like sports, not all entertainment venues need to appeal to that same demographic. 

Gaming Meets Modern Technology 

The gaming market is estimated to reach $189 billion by the end of 2025—a 3% growth year-over-year, according to Newzoo's Global Games Market Report 2024. For one firm, “playtainment” is all the rage. 

Gensler partnered with social gaming startup Virsona to develop a digitally connected series of entertainment spaces. These pop-up “portals” offer hybrid entertainment options where players can game together from afar. Each venue’s portal connects to another portal somewhere else—they “talk” to one another, from across the room or even in other cities. 

The concept experience was tested in New York City. Gensler’s Design Director Alexia Beghi likens the concept to a sports bar.

“You can be really engaged with the game or just there for the vibes, to hang with friends or colleagues, grab a craft cocktail and snack,” says Beghi. 

With the portals, technology is the enabler for human connection via gaming. Immersive design takes hold when lighting is adjusted based on the content being streamed, or leaderboards showcase the winning team across all Virsona venues. 

In Gensler’s “Trends to Watch” for 2025, the concept of IP-based development was found to be notable across the world. In regions like China and Latin America, IP-based storytelling excels—think Disney and Universal. In China, the convergence of gaming and storytelling is growing “in a really big way,” according to Ann Morrow Johnson, AIA, Global Entertainment Leader, Design Director, Gensler. 

Though entertainment venues are varied, there are many solutions that bring people together in these spaces. From a connection to food and nostalgia to modern-day technology and gaming, well-designed entertainment hubs may prove to be a successful way to beat the loneliness epidemic.