- By Alex David
- Sat, 21 Jun 2025 11:40 PM (IST)
- Source:JND
As predicted by the research firm Newzoo, the global video game industry is expected to see modest improvements in growth in 2025. As observed from past data, there is an anticipated ∼3.4% increase year-on-year that would put the market value at $188.9 billion (equivalent to ~₹16.33 lakh crores), which is a slight improvement over the 3.2% recorded growth of last year.
Expectations Dampened by GTA 6 Delay and Hardware Price Hikes
Analysts have noted that a significant portion of revenue was expected this year, mostly due to Rockstar releasing their Grand Theft Auto GAN-US VI along with new generation consoles slated for release as well. To many people’s disappointment, though, lifted expectations were when Rockstar pushed back GTA 6's launch date too early in 2026.
Consumer behaviour uncertainty has only been further compounded by price rises across low and mid-tier gaming equipment like Sony’s PlayStation 5 or Microsoft’s Xbox Series X/S consoles due to existing tariffs and taxes as well.
“This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines,” said Michiel Buijsman, Principal Analyst at Newzoo.
Long-Term Outlook: Slower But Steady Growth
Newzoo has adjusted its forecast for overall market growth to a compound annual growth rate (CAGR) of 3.3% through 2027, down from a previously estimated 3.7% mark. Growth in and beyond 2026 will be driven by the anticipated release of GTA VI, along with major titles such as Capcom’s Resident Evil Requiem and the planned PC launch of GTA VI.
Console Market Facing Mixed Signals
Amid ongoing inflationary pressures and economic uncertainties confronting consumers globally, new price point introductions for PlayStation and Xbox consoles could lead to a decline in hardware sales.
While Nintendo’s predicted Switch 2 is selling faster than any other console released before it, Microsoft’s Xbox seems to be experiencing weaker demand relative to previous generations:
“Xbox generally is falling further behind on Xbox One, so there will be more sales to come, but we don’t expect big numbers,” Buijsman noted. “We expect that the lifetime units of PS5 will still slightly trail PS4.”
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At the same time, Microsoft announced plans to venture into handheld gaming with the release of the collaborative ASUS-developed console Xbox Ally. Projected to hit shelves during the holiday season of 2025, the device will introduce new elements to handheld gaming.
Conclusion
Although 2025 may not bring the anticipated record growth, the video game industry is still steadily growing. The postponement of GTA VI, coupled with pricing headwinds, has tempered short-term expectations; however, significant releases combined with innovation in hardware are likely to strengthen momentum entering late 2026 and further.