The global video game market is expected to see only a modest improvement in growth in 2025 compared to the previous year, according to a report by research firm Newzoo. Analysts and industry experts had initially projected a more significant boost for the industry this year, fueled by the highly anticipated launch of Grand Theft Auto VI from Take-Two Interactive and the release of next-generation gaming hardware.
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However, the delay of GTA 6 to 2026, coupled with rising console prices due to tariffs, has cast uncertainty over consumer spending in the gaming sector.
According to Newzoo's report, the global video game market is projected to grow by 3.4% to $188.9 billion in 2025, slightly higher than the 3.2% growth recorded in 2024. “These projections reflect tangible shifts in hardware cycles, pricing trends, install base expansion, and the upcoming game release schedule,” said Michiel Buijsman, lead analyst at Newzoo.
A Bigger Boost Expected in 2026
With GTA VI now set for a 2026 release, the industry is expected to see a more significant sales boost next year, especially with other major titles like Capcom’s "Resident Evil Requiem" also on the horizon. The report noted that the eventual release of GTA 6 on PC could help extend the growth momentum into 2027.
Hardware Pricing and Market Concerns
The report also highlighted consumer concerns surrounding rising hardware prices. Both Microsoft’s Xbox and Sony’s PlayStation consoles have seen price increases, which may deter potential buyers amid ongoing economic uncertainty worldwide.
Even though Nintendo’s Switch 2 is on track to become the company's fastest-selling console, Xbox is still trailing behind the sales performance of its previous generation. “We expect higher Xbox sales than last year, but not record-breaking numbers,” Buijsman explained. “As for PlayStation 5, sales are projected to stay slightly below those of the PlayStation 4.”
New Hardware on the Horizon
Microsoft recently unveiled its new handheld gaming device, the Xbox Ally, developed in collaboration with ASUS. The device is scheduled to launch during the 2025 holiday season, potentially adding momentum to the market during the year-end sales window.
Despite the current tempered growth, 2026 is shaping up to be a milestone year for the gaming industry, with flagship game launches and new hardware releases poised to drive stronger performance across global markets.
