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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.

FTC Drops Microsoft–Activision Blizzard Case, Ending Challenge to $69 Billion Merger

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The U.S. Federal Trade Commission (FTC) has formally dropped its legal case against Microsoft’s $69 billion acquisition of Activision Blizzard, bringing a definitive end to one of the most high-profile antitrust challenges in the gaming industry.

The FTC announced Thursday that it would not pursue further legal action, citing that continuing the case was “not in the public interest.” The decision comes after the agency lost an appeal on May 7 to block the deal, which officially closed in 2023.

The acquisition—the largest in gaming history—gives Microsoft control over blockbuster franchises such as Call of Duty, World of Warcraft, and Candy Crush, solidifying its dominance in both console and cloud-based gaming.

Shifting Priorities Under New FTC Leadership

FTC Chairman Andrew Ferguson, recently appointed by President Donald Trump, is redirecting the agency’s focus toward matters aligned with the current administration’s priorities. This includes:

  • A probe into advertiser collusion on Elon Musk’s X platform (formerly Twitter), as first reported by Reuters.

  • Ending legacy antitrust efforts, including a price discrimination case against PepsiCo, also dropped Thursday.

This pivot marks a departure from the aggressive antitrust posture of Ferguson’s predecessor, Lina Khan, who launched the Activision challenge over concerns that Microsoft might use the acquisition to suppress competition in the gaming sector—particularly via Xbox exclusivity and its Game Pass subscription service.

Microsoft’s Response

In a statement, Microsoft President Brad Smith praised the FTC’s decision, calling it:

“A victory for players across the country and for common sense in Washington, D.C.”

Microsoft has repeatedly argued that the merger will benefit consumers, pledging to keep popular titles like Call of Duty available across platforms, including Sony’s PlayStation.

Background and Legal Outcome

Though the FTC initially failed to secure a preliminary injunction to halt the deal before closing, it retained the option to pursue a post-closing trial in July 2025 aimed at unwinding the acquisition. That option is now off the table.

The deal had already secured regulatory approval in the EU and U.K., the latter after Microsoft agreed to restructure parts of the acquisition, such as cloud gaming rights.

With the FTC now stepping aside, the merger’s legal battles appear fully resolved, cementing Microsoft’s expanded position in the global gaming industry.

Asus ROG Ally 2 and ‘Project Kennan’ Xbox Handheld Appear in US FCC Listings

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Asus is gearing up to launch the much-anticipated second generation of its handheld gaming console, the ROG Ally 2, with new details about its design and specifications recently leaked online. According to a listing on the US Federal Communications Commission (FCC) website, both the ROG Ally 2 and Asus’s Xbox-branded handheld, codenamed ‘Project Kennan,’ will sport 7-inch displays with a smooth 120Hz refresh rate. The devices are expected to be powered by AMD processors, signaling a focus on delivering robust gaming performance in a portable form factor. Visuals from the listing hint at a fresh design direction, with the consoles resembling traditional gaming controllers to enhance ergonomics and gameplay comfort.

Further insights reveal that Asus plans to release the ROG Ally 2 in two variants, distinguished by color and hardware specs. Certification documents from Indonesia’s SDPPI website confirm the existence of a black model (RC73X1) and a white model (RC73YA). These model numbers also appear on the FCC site, confirming their authenticity. The black version features a dedicated Xbox button, though its exact functionality remains unclear. Some industry reports suggest that Microsoft is working on optimizing Windows for handheld gaming devices to improve the user experience, especially on smaller screens where traditional Windows UI can feel cumbersome.

In terms of hardware, the black variant of the ROG Ally 2 is expected to pack a powerful octa-core AMD Ryzen Z2 Extreme processor, delivering up to 36W of power, coupled with 64GB of high-speed LPDDR5x-8533 RAM. This combination is likely aimed at gamers seeking top-tier performance on the go, enabling smooth gameplay even for demanding titles. On the other hand, the white variant appears to be a more budget-friendly option, featuring a less potent AMD Aeirth Plus processor running at 20W, though details about its RAM capacity remain under wraps.

As Asus prepares to unveil the ROG Ally 2 lineup, the inclusion of a dedicated Xbox-branded handheld device highlights the company’s collaboration with Microsoft and its ambition to carve out a strong presence in the handheld gaming market. With enhanced hardware, high-refresh displays, and design tweaks aimed at improving comfort, these new devices could offer compelling choices for gamers looking for portable yet powerful consoles. Fans eagerly await an official launch date and pricing information in the coming weeks.