The global video game market’s growth is projected to improve slightly in 2025, increasing by 3.4% to reach $188.9 billion, according to a report by research firm Newzoo, exclusively seen by Reuters on Tuesday. This marks a modest rise from last year’s 3.2% growth.
Industry experts had anticipated a stronger surge in 2024 driven by the anticipated launch of Take-Two Interactive’s blockbuster title Grand Theft Auto VI (GTA VI) alongside new gaming consoles. However, the game’s delay to 2026, combined with hardware price hikes caused by tariffs, has created uncertainty in consumer spending patterns.
Michiel Buijsman, Newzoo’s principal analyst, noted that the forecast accounts for factors such as hardware cycles, pricing trends, growth in installed user bases, and the slate of upcoming game releases. Despite the delay, Newzoo projects an average annual growth rate of 3.3% through 2027, down from an earlier forecast of 3.7%.
The market is expected to benefit from GTA VI’s launch in 2026 and other premium games such as Capcom’s Resident Evil Requiem. The PC release of GTA VI is also predicted to sustain growth through 2027.
Price increases for major consoles like Microsoft’s Xbox and Sony’s PlayStation have raised concerns about slowing hardware sales amid global economic uncertainty. Meanwhile, Nintendo’s Switch 2 has become the company’s fastest-selling console to date, bucking this trend.
Buijsman highlighted that Xbox sales continue to lag behind PlayStation’s previous generation, projecting moderate hardware sales ahead. Xbox recently announced its new handheld device, the Xbox Ally, developed with ASUS, which is slated for release during the 2025 holiday season.