The growth rate of the global video game market is anticipated to see a slight increase in 2025 compared to the previous year, according to a report from the research firm Newzoo, which was exclusively reviewed by Reuters on Tuesday.
Industry analysts had previously predicted a significant spike in growth for this year, driven by the much-anticipated launch of Take-Two’s Grand Theft Auto VI and the introduction of new gaming hardware.
However, the postponement of the highly awaited title until next year, along with rising prices for video game consoles due to tariffs, has created uncertainty regarding consumer spending.
The global video game market is expected to expand by 3.4 percent to reach $188.9 billion (approximately Rs. 16,33,527 crore) in 2025, a modest increase from last year’s growth of 3.2 percent, as outlined in the report.
“This forecast takes into account various factors, including hardware cycles, pricing trends, growth of the install base, and upcoming title releases,” said Michiel Buijsman, principal analyst at Newzoo.
Looking ahead, Newzoo projects that the market will grow at an annual compounded rate of 3.3 percent through 2027, a revision from its earlier estimate of 3.7 percent.
With the launch of “GTA VI” scheduled for 2026, the gaming industry is likely to experience a sales boost next year alongside the release of other high-profile games such as Capcom’s “Resident Evil Requiem.”
The report also suggests that the release of Grand Theft Auto VI on PC is expected to sustain growth through 2027.
Concerns over reduced hardware sales have emerged due to price increases for Microsoft’s Xbox and Sony’s PlayStation, as consumers worldwide navigate a climate of market uncertainty. This comes even as Nintendo’s Switch 2 has achieved record-breaking sales for the company.
“The Xbox brand continues to lag behind, especially the Xbox One, so we anticipate continued sales, but not at significant levels. We predict that the total units sold of the PS5 will likely still be slightly below that of the PS4,” Buijsman remarked.
Earlier this month, Xbox introduced its own handheld console, the Xbox Ally, developed in collaboration with ASUS, which is slated for release during the holiday season in 2025.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
