The global video game market is set for a major boost, with console gaming expected to be the primary growth driver until 2027, according to a report by research firm Newzoo. The anticipated launches of Take-Two Interactive’s much anticipated Grand Theft Auto VI and Nintendo’s next-generation Switch are key contributors to this projected expansion.
Following a post-pandemic downturn, the gaming industry has been navigating a slow recovery amid economic uncertainty and persistently high inflation.
Notably, these challenges led to widespread layoffs, studio closures, and project cancellations in 2024. However, analysts suggest that the arrival of the new Switch console, expected in mid-2025, and GTA VI, likely launching in autumn, could revitalise the sector.
Take-Two’s previous instalment in the GTA franchise remains one of the highest-grossing video games ever, with sales exceeding 210 million copies as of December 2024. Meanwhile, Nintendo recently lowered its sales forecast for its ageing Switch, signalling an impending transition to its next-generation device.
Emmanuel Rosier, director of market analysis at Newzoo, highlighted the enduring appeal of major console releases such as Sony’s Spider-Man and God of War, which have encouraged players to invest more time in gaming. He noted that these large-scale titles tend to have a greater impact on console sales than on PCs, where gamers often favour older titles.
Newzoo’s report forecasts that console software revenue will rise by seven per cent between 2024 and 2027, outpacing the modest 2.6 per cent growth predicted for PC gaming. By 2027, console revenue is projected to make up over 56 per cent of the combined PC and console software market, which is expected to reach $92.7 billion.
Total playtime saw a six per cent increase in 2023, with the final quarter recording the highest engagement levels, largely driven by the launch of a new Call of Duty title from Activision Blizzard.
(With inputs from Reuters)
