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‘GTA VI’ Delay Slows Global Video Game Market Growth, Newzoo Report Shows

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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.

Nintendo Switch 2 Sets Record as Fastest-Selling Console in Company History

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Nintendo announced on Wednesday that its recently launched Switch 2 console sold over 3.5 million units within the first four days, marking the fastest sales start for any Nintendo gaming device to date. The launch took place on June 5.

The Kyoto-based gaming giant projects that Switch 2 sales will reach 15 million units by the end of the current financial year in March 2026, reflecting strong global demand.

Doug Bowser, President and COO of Nintendo of America, highlighted the enthusiasm from fans worldwide, praising the Switch 2 as an enhanced gaming experience that works seamlessly both at home and on the go.

Since its debut in 2017, the original Nintendo Switch has sold 152 million units, supported by blockbuster games like “The Legend of Zelda” series and the viral success “Animal Crossing: New Horizons” during the COVID-19 pandemic.

The Switch 2 offers a more powerful performance, featuring a larger screen and upgraded graphics while maintaining many design elements familiar to Switch users. It launched alongside popular titles such as “Mario Kart World,” fueling the early sales surge.

Gamers Line Up for Nintendo Switch 2 Amid High Demand on Launch Day

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Enthusiastic gamers queued up on Thursday for the launch of Nintendo’s Switch 2, showcasing strong demand for the next-generation gaming console. The new device, priced at $499.99, features a larger screen and improved graphics while debuting with titles like Mario Kart World.

In Tokyo’s Ikebukuro district, winners of a sales lottery by electronics retailer Bic Camera gathered early to collect their Switch 2 units. Yumi Ohi, a 30-year-old delivery contractor who traveled from nearby Saitama prefecture after missing previous lotteries, expressed her excitement: “I feel like I’m going to cry.”

Since its original launch in 2017, the Nintendo Switch has sold 152 million units and become a cultural phenomenon with hits such as The Legend of Zelda and Animal Crossing: New Horizons. Analyst Piers Harding-Rolls of Ampere Analysis expects the large Switch user base to help drive strong initial adoption for the new model. He added that Nintendo appears better prepared to meet demand this time around.

The launch is also a test for Nintendo’s supply chain amid ongoing U.S.-China trade tensions. Nintendo forecast sales of 15 million Switch 2 units this financial year, alongside 4.5 million of the original Switch.

President Shuntaro Furukawa said the company will boost production and focus on sales promotion to surpass these targets. The Switch 2 sales lottery on Nintendo’s Japanese store drew 2.2 million applicants, while pre-orders at Target in the U.S. sold out in under two hours.

Serkan Toto, founder of Kantan Games, warned buyers they might face weeks or months before the console becomes widely available in stores. Investor enthusiasm is high, with Nintendo shares up 28% year-to-date despite a recent 2% dip.

However, some analysts caution that casual gamers might wait to see how the Switch 2’s game library expands beyond launch titles. Ampere forecasts sales exceeding 100 million units by 2030.

The launch also sparked debate over game pricing, with Mario Kart World priced at $79.99 in the U.S. Longtime gamer Akitomo Takahashi, 40s, considered this reasonable given historical game prices and looks forward to playing Elden Ring on the new console.