The global video game market is expected to grow only modestly in 2025, according to a Newzoo report seen exclusively by Reuters. The slowdown is partly attributed to the highly anticipated delay of Take-Two's Grand Theft Auto VI to 2026, as well as higher hardware prices linked to tariffs.
The market is expected to grow by 3.4% in 2025 to reach $188.9bn, following a 3.2% increase in 2024. Analysts had initially expected a sharp acceleration this year, driven by the launch of GTA VI and new consoles.
"This forecast reflects concrete changes: hardware cycles, pricing trends, growth in the installed base, and the release schedule for titles," explains Michiel Buijsman, principal analyst at Newzoo.
The compound annual growth rate is now estimated at 3.3% through 2027, down from 3.7% in previous forecasts. The delay of GTA VI, now scheduled for release in 2026, will therefore postpone the impact of this flagship title on the sector's results. It should be accompanied by other major releases, including Capcom's Resident Evil Requiem, scheduled for the same year.
The PC version of GTA VI is expected to extend the commercial momentum until 2027.
In addition, price increases for Xbox (Microsoft) and PlayStation (Sony) consoles are fueling concerns about a possible slowdown in hardware sales. In this uncertain environment, Nintendo's Switch 2 stands out, having achieved the best launch in the manufacturer's history.
"Xbox continues to lag behind the Xbox One generation. There will still be sales, but we don't expect major volumes... and we believe that the PS5 will end up slightly below the cumulative sales of the PS4," said Buijsman. However, Xbox is no longer hiding its strategy focused on its GamePass subscription.
This month, Microsoft unveiled its own portable console, the Xbox Ally, developed in partnership with ASUS, which is scheduled for release in late 2025.
