Video Games Year in Review: Part 1, 2025

Key insights

7 takeaways

01
Saudi Arabia’s Public Investment Fund is set to acquire a 93% stake in Electronic Arts for $29 billion, according to a regulatory filing in Brazil.
02
Nintendo’s Switch 2 launched in June 2025 at a price of £395 ($449), achieving 3.5 million units sold within its first four days.
03
In April 2025, the U.S. implemented a new tariff regime that imposed a 145% tariff on Chinese imports and a 10% baseline tariff on most other nations, forcing hardware manufacturers like Microsoft, Sony, and Nintendo to raise device prices.
04
A May 2025 court ruling forced Apple to allow third-party payment options and end its restrictive 'steer' policies, effectively breaking its monopoly on iOS app stores in the U.S. and Europe.
05
The EU and UK implemented bans on the export of video game hardware to Russia in January and May 2025, respectively, to prevent the use of game controllers in military applications.
06
The Pokémon Company was awarded $15 million in compensation following a successful legal action against the unauthorized title 'Pocket Monster: Remake'.
07
The horror game 'Horses' by Santa Ragione Game Studio was rejected by Steam and Epic Games but was subsequently accepted for distribution on GOG.

Summary

The first half of 2025 was defined by significant geopolitical volatility, major hardware launches, and ongoing legal battles over digital platform control. This review highlights how macroeconomic shifts, particularly trade policies and international relations, directly impacted the global video game industry. The period saw a notable intersection of political agendas and corporate strategy, ranging from hardware export bans to the influence of sovereign wealth funds on major game publishers.

Key industry developments included the launch of the Nintendo Switch 2, which achieved 3.5 million sales in its first four days despite a high price point and a sparse launch library. Concurrently, the industry faced substantial disruption from a new United States tariff regime, which forced hardware manufacturers like Microsoft, Sony, and Nintendo to raise prices due to increased costs in key manufacturing hubs. Legal and regulatory pressures also intensified, most notably with a court-ordered ruling that forced Apple to open its iOS ecosystem to third-party payment providers, effectively ending its long-standing app store monopoly.

The period was also marked by significant consolidation and labor activism. Saudi Arabia’s Public Investment Fund continued its expansion into the sector, with the $3.5 billion acquisition of Niantic’s game division by the Saudi-owned firm Scopely, and reports of the fund moving toward a 93% ownership stake in Electronic Arts. Meanwhile, labor efforts gained momentum as professionals in the United States and Canada formed the United Videogame Workers union to address industry-wide layoffs and workplace conditions. These events collectively underscore a year of transition, where regulatory oversight, trade protectionism, and shifting ownership models fundamentally altered the competitive landscape for developers and hardware manufacturers alike.