Report

Games Industry in 2025

1 January 202537 pages5,479 words

Summary

The global games content and services market reached a record $199.4 billion in 2024, a 3.5% year-on-year increase that surpassed pandemic-era peaks. Despite this financial milestone, the industry faces significant structural challenges, including widespread layoffs, studio closures, and a shift toward de-risking strategies. Growth is expected to slow to 0.9% in 2025, largely due to the delay of Grand Theft Auto VI into 2026, which is projected to remove $2.7 billion from the 2025 console market. However, the industry is forecast to surpass the $200 billion threshold for the first time in 2025, with growth accelerating to 2.2% in 2026. Key growth opportunities center on new hardware and emerging markets. The anticipated launch of the Nintendo Switch 2 in 2025 represents a $7-8 billion content opportunity, with significant potential for increased in-game monetization. Geographically, the Middle East, Africa, and Southeast Asia are expected to outperform Western markets, with the Middle East and Africa projected to grow by 6.3% in 2025. Additionally, significant headroom exists in mature markets like the U.S. by targeting underserved cohorts, specifically females aged 16-24 and adults over 55. The industry is navigating a transition in monetization and platform dynamics. In-game spending accounts for 77% of total revenue, while physical media is expected to dwindle to just 2% of the market by 2026. To combat escalating AAA development costs, publishers are increasingly utilizing remakes, remasters, and transmedia franchise strategies. While mobile gaming remains the largest segment at 58% market share, PC gaming showed the strongest growth in 2024 at 5.7%. The analysis utilizes proprietary market modeling, financial KPIs, and quantitative consumer research across global regions to provide a comprehensive outlook through 2026.

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