Video game consoles are likely to be the market’s biggest growth driver by 2027, research firm Newzoo said on Monday, citing strong expected sales of Take-Two’s upcoming Grand Theft Auto 6 and Nintendo’s next-gen Switch.
why it’s important
The video game industry has been slowly recovering after a post-pandemic slump, as concerns about economic uncertainty and still-high inflation have dented consumer spending on consoles and games.
This has led to massive layoffs, studio closures and project cancellations across the industry in 2024. But analysts expect the launch of the new Switch console and GTA 6, likely to be released this summer and fall respectively, will spur an economic rebound.
Take-Two Interactive’s predecessor to GTA 6 is one of the most profitable video games in the world, having sold more than 210 million copies as of December 2024. Meanwhile, Nintendo last month cut its full-year sales forecast for its old console ahead of the launch of its successor.
Key Quotes
The power of major console releases like Sony’s “Spider-Man” and “God of War” is driving players to spend more time on consoles, Newzoo director of market analysis Emmanuel Rosier told Reuters.
“And these types of AAA or AAAA releases have less of an impact on PC,” he added, attributing the trend to PC gamers’ preference for older games.
From a numerical perspective
Console software revenue is expected to grow 7% from 2024 to 2027, outpacing PC growth of 2.6%, the report said.
Console revenue is expected to account for more than 56% of total PC and console software revenue of $92.7 billion (approximately Rs. 8,03,109 crore) by 2027.
Total game time grew 6% last year, with the fourth quarter hitting a quarterly record as Activision Blizzard launched its new Call of Duty game.
© Thomson Reuters 2025
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