The global gaming industry is heading into 2025 with modest expectations, as the delay of Grand Theft Auto VI and rising console prices take some steam out of the market. That’s according to a new report from research firm Newzoo, which puts the year’s projected revenue at $188.9 billion, reflecting a slight growth of 3.4 per cent from the previous year.
It’s a cautious outlook for a market that had been widely expected to surge, driven by new hardware and major game launches. But the pushback of GTA 6 to 2026 has shifted those hopes, with the industry now eyeing next year for a real rebound.
“Expectations have adjusted because of changes in game release schedules, hardware pricing, and how fast consoles are reaching players,” said Michiel Buijsman, principal analyst at Newzoo.
Price hikes on the latest PlayStation and Xbox consoles have also added pressure. With inflation and tariffs pushing up production costs, manufacturers have passed those increases onto consumers. This has made buyers more hesitant, especially at a time when many are already watching their spending closely.
Nintendo, however, appears to be holding its ground. Its next-generation Switch 2 console has already broken internal pre-order records, suggesting strong demand despite the broader uncertainty in the hardware market.
There are still reasons to be optimistic. GTA 6, one of the most highly anticipated games of the decade, is now expected to land in 2026. That alone could trigger a major revenue jump. Other big releases like Capcom’s Resident Evil Requiem are also expected to drive momentum. GTA 6 is also expected to launch on PC after its console release, which could help keep the industry’s growth going through 2027.
Microsoft is also preparing to expand its hardware offerings. Earlier this month, it revealed the Xbox Ally, a handheld console developed in partnership with ASUS. The device is set to launch in the 2025 holiday season, as the company looks to tap into the fast-growing handheld gaming segment.
Looking ahead, Newzoo sees the industry growing at an average rate of 3.3 per cent annually through 2027. That’s slightly lower than its previous estimate of 3.7 per cent, but it still signals a healthy future.
In short, 2025 may not bring the boom many had hoped for, but with massive titles in the pipeline and new hardware entering the market, 2026 is shaping up to be a much bigger year for gaming.
