Driven by strong year-on-year growth from pc the gaming industry has crossed the $200 billion mark in 2025, a new milestone worldwide. The PC gaming market was boosted by the release of several games throughout 2025 and was not exclusively focused on a single title.
Along with the release of several games for PC, console and mobile platforms, 2025 also marked the arrival of the Nintendo Switch 2. Nintendo's current generation console sold over 15 million units worldwide in its first seven months of availability. Although the Switch 2 will go through a price hike starting September 1st, Nintendo has introduced new console bundles to offset some of the costs ahead of the planned move.
The gaming console that outsold the PS5 is coming to another region
The brand new gaming console is getting ready to hit the market in another region after the sale of the PlayStation 5.
The gaming industry saw record sales in 2025
Although 2025 is also marked by continued mass layoffs, the gaming industry achieved an all-time high compared to previous years. According to a report by Newzoo on June 18, the global gaming industry crossed the $200 billion mark for the first time with revenues of $201.6 billion. A total of $201.6 billion was split between PC, console and mobile games. While mobile gaming made up the majority at $113.8 billion (56%), the PC gaming market saw the strongest year-over-year growth of 12%. PC games will accumulate $43.6 billion during 2025, mainly due to titles across different price levels. Newzoo said they like AAA titles Battlefield 6 and Monster Hunter Wildsalongside the award-winning RPG Clair Obscur: Expedition 33are some of the games that have contributed to the growth of the PC market. Expedition 33 celebrated its first anniversary in April 2026 with a free content update.
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Identify the silhouettes before time runs out.
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Identify the silhouettes before time runs out.
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In comparison, console game revenue reached $44.7 billion, up 2.8% year-over-year. Although the Switch 2 was a strong contributor to the console market in 2025, Newzoo said console gaming was “held back by softer-than-expected live services performance and weaker-than-expected returns from the Nintendo ecosystem.” Despite console gamers pulling away from microtransactions, Newzoo said subscription services like Xbox Game Pass contributed 10.2% to year-over-year revenue growth.
However, Newzoo warned that the gaming industry will face headwinds in 2026 and beyond. The reason is primarily the ongoing DRAM shortage crisis, which has caused the prices of RAM, SSD and other components to skyrocket. Consumers of PC, console and mobile gaming will continue to experience rising costs throughout the year. For PCs in particular, rising hardware costs will present a steep barrier to entry for new builders to overcome. Additionally, the PS5 and Xbox Series X/S have already seen price increases, while the Switch 2 has an imminent price increase from September 1st. Various Android devices also saw price jumps over the year, as smartphone shipments fell 6% year-on-year in the first quarter of 2026.
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Newzoo also predicted this Grand Theft Auto 6 will serve as a major catalyst for console gaming and the entire gaming industry once it arrives on November 19th. WITH GTA 6 with pre-orders starting on June 25, it remains to be seen how many copies of Rockstar Games' upcoming title will sell heading into the holiday shopping season.
Source: PC Gamer
