The video game industry is expected to rebound in 2025 and beyond, with major growth predicted by analyst firm DFC Intelligence. Despite a slump over the past two years, driven by uncertainty, layoffs, and studio closures, the industry will return to growth, fueled by the increasing number of gamers worldwide.
As of 2024, there are approximately 3.8 billion gamers globally, with this number expected to reach 4 billion by 2028. The core gaming audience accounts for 10% of this total, spending 65% of all video game revenue, while casual gamers make up the remaining 90%.
Nintendo’s next console, known as the Switch 2, is set to release in 2025 and is expected to drive significant growth. DFC predicts that the Switch 2 will sell between 15-17 million units in 2025, with sales reaching over 80 million by 2028.
The gaming industry is also seeing a trend of high spending on gaming hardware, surpassing PC and console software sales in 2023. This trend is driven by the core gaming audience, who view high-end gaming hardware as a status symbol.
However, DFC warns that one major loser in the next generation of console wars could be either Sony or Microsoft, depending on various factors. Early adopters and innovative features such as portability are likely to give them an edge over their competitors.
In addition, new game releases are expected to drive growth, with highly anticipated titles like GTA 6 breaking records. DFC predicts that PC and console revenue will reach $200 billion a year by 2028, driven in part by new consoles from Microsoft and Sony releasing between 2026 and 2028.
Source: https://www.gamespot.com/articles/nintendos-next-console-will-drive-major-industry-growth-in-2025-analyst-predicts/1100-6528534