Global Gaming Market Eyes Modest Rise Amid Delays, Tariffs
The global video game market is forecast to grow 3.4% in 2025, despite hardware price hikes and delays to blockbuster titles like GTA VI, a Newzoo report shows.
Introduction: Industry Faces Slow But Steady Climb in 2025
After a year of high hopes and mixed signals, the global video game market is preparing for a modest rebound in 2025. A new report by gaming analytics firm Newzoo reveals a tempered optimism for industry growth, driven more by gradual momentum than explosive releases. The much-anticipated “Grand Theft Auto VI,” once expected to supercharge 2025 sales, has been pushed to 2026, leaving gamers and investors to readjust their expectations.
Context & Background: From Blockbuster Hopes to Measured Growth
At the start of the year, many in the gaming industry forecasted a sharp uptick in market expansion. With the anticipated launch of Take-Two Interactive’s Grand Theft Auto VI and new gaming consoles, 2025 was supposed to be a defining year. However, delays to major releases and rising hardware prices have muted the outlook.
One of the key dampeners has been the deferral of GTA VI’s launch to 2026. Combined with the impact of global tariffs on gaming consoles, which has led to price hikes for devices from Microsoft, Sony, and others, consumers are reconsidering their spending habits.
Main Developments: Newzoo Forecasts Tepid Growth Amid Challenges
According to the Newzoo report, the global video game industry is expected to grow by 3.4% in 2025, reaching an estimated $188.9 billion in market value. This is a slight improvement from the 3.2% growth recorded in the previous year.
The report cites several key factors influencing the forecast:
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Ongoing hardware refresh cycles
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Fluctuations in pricing due to tariffs
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The size of the global install base
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A mixed pipeline of title releases
While growth is expected to continue through 2027, Newzoo now projects an average annual growth rate of 3.3%, down from its previous estimate of 3.7%.
Expert Insight: Analysts Tread Cautiously
“The numbers reflect evolving market realities—pricing trends, hardware cycles, and upcoming software pipelines are all impacting consumer behavior,” explained Michiel Buijsman, Principal Analyst at Newzoo.
He emphasized that while the fundamentals remain strong, expectations need to be recalibrated in light of current market disruptions, especially delays to high-profile games and hardware pricing volatility.
Impact & Implications: The Bigger Games Are Yet to Drop
The full impact of GTA VI is now expected in 2026, when its console release will be followed by a PC version likely to extend its revenue-generating momentum into 2027. Other titles, including Capcom’s Resident Evil Requiem, are slated to bolster industry revenues next year, helping offset some of the growth deferment caused by GTA VI’s delay.
Meanwhile, hardware dynamics remain in flux. Microsoft and Sony have increased prices for Xbox and PlayStation consoles, raising concerns over reduced consumer purchasing power in a volatile economic climate. Nintendo, however, has seen success with its upcoming Switch 2, which has become the fastest-selling console in the company’s history.
Adding to the hardware competition, Microsoft recently unveiled the Xbox Ally, a handheld gaming device developed in collaboration with ASUS. Scheduled for a holiday 2025 release, it’s expected to appeal to on-the-go gamers and could serve as a new revenue stream for Xbox.
Conclusion: Industry Enters Holding Pattern Before 2026 Boom
The video game industry’s short-term outlook remains stable, albeit underwhelming, as it enters a year of regrouping. With blockbuster titles postponed and hardware prices climbing, 2025 is shaping up to be a transitional phase rather than a breakout year.
However, with highly anticipated releases queued for 2026 and innovations in both software and hardware on the horizon, industry stakeholders remain hopeful for a stronger rebound in the near future. For now, moderate gains and strategic patience appear to be the name of the game.
⚠️ (Disclaimer: This article is a rewritten version based on a Reuters report referencing Newzoo data. All factual information remains aligned with the original source. No speculative content or unverifiable claims have been added.)