Driven by strong year-on-year growth from PC game sales, the gaming industry crossed the $200 billion threshold in 2025, setting a new milestone worldwide. The PC gaming market was spurred by multiple game releases in 2025 and was not solely focused on a single title.
Along with the launch of several games on PC, consoles and mobile platforms, 2025 also marked the arrival of the Nintendo Switch 2. Nintendo's current generation console has sold over 15 million units worldwide in its first seven months of availability. Although the Switch 2 will undergo a price increase starting September 1st, Nintendo has introduced new console bundles to offset some costs ahead of the planned move.
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2025 gaming industry set record in revenue
Despite the fact that 2025 was also marred by continued mass redundancies, the gaming industry set a historic record compared to previous years. According to a report by market research firm Newzoo on June 18, the global gaming industry crossed the $200 billion threshold for the first time, with $201.6 billion in revenue. 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 had the strongest year-over-year growth at 12%. PC games accumulated $43.6 billion in 2025, largely thanks to titles across multiple price points. Newzoo stated that AAA titles like Battlefield 6 and Monster Hunter Wildsalong with the award-winning RPG Clair Obscur: Expedition 33are some games that contributed to the growth of the PC market. Expedition 33 celebrated its one-year anniversary in April 2026 with a free content update.
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In comparison, console gaming revenue totaled $44.7 billion, a 2.8% year-over-year growth. Although the Switch 2 was a strong contributor to the console market in 2025, Newzoo noted that console gaming was “held back by softer live service performance and weaker than expected Nintendo ecosystem revenue.” Despite console gamers retreating to microtransactions, Newzoo said subscription services like Xbox Game Pass contributed 10.2% of revenue year-over-year.
However, Newzoo warned that the gaming industry will face some headwinds in 2026 and beyond. This is mainly due to the ongoing DRAM shortage crisis, which has caused the prices of RAM, solid-state devices and other components to skyrocket. Consumers of PC, console and mobile games will continue to experience rising costs throughout the year. For PCs in particular, the rising cost of hardware will be 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 starting September 1st. Various Android devices have also seen price jumps throughout the year, as smartphone shipments fell 6% year-over-year in the first quarter of 2026.
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Newzoo also predicted that Grand Theft Auto 6 will act as a major catalyst for console gaming and the entire gaming industry when it arrives on November 19th. GTA 6 pre-orders starting on June 25th, it remains to be seen how many copies of Rockstar Games' upcoming title will be sold during the holiday season.
Source: PC Gamer
