The gaming industry is projected to see a spending surge in the coming years, driven by two major launches: Nintendo Switch 2 and Grand Theft Auto 6. This expectation follows a recent dip in PC and console game revenue, alongside the introduction of new US tariffs that may raise consumer prices.
Industry recovery expected through new releases
Reports from market analysis firms Newzoo and DFC Intelligence indicate that while recent tariffs will likely slow growth in PC and console game spending, they won’t prevent a rebound. Industry observers believe that the arrival of new hardware and high-profile titles in 2025 could reinvigorate consumer interest and spending.
Also read: Nintendo Switch 2: Release date, expected price, games, key features and more
According to Newzoo (via Eurogamer), global spending on PC and console games dropped by two percent to $80.2 billion in the previous year. The decline follows a broader industry slowdown that began after the pandemic-related surge in gaming activity. Despite the dominance of older, free-to-play, and live-service games, upcoming premium releases such as GTA 6 and the launch of the Switch 2 are expected to increase console revenue. Projections estimate that the console segment could reach $85.2 billion in 2025 and rise to $92.7 billion by 2027.
Also read: Leaked GTA 6 price sparks debate: Could Rockstar’s next game set a new price standard?
Pricing concerns and trade policy impact
However, the impact of rising prices remains uncertain. Rockstar Games may price GTA 6 at up to $100, and Nintendo recently revealed an $80 price point for its upcoming title Mario Kart World. The Switch 2 is expected to retail at $450, a price Nintendo attributes to inflation. Pre-orders in North America were suspended following an announcement from the White House detailing higher tariffs on electronics.
New tariffs will affect imports from several countries, including Japan (24 percent), Vietnam (46 percent), and Cambodia (49 percent). Additionally, tariffs on products from China have risen to 104 percent under policies introduced by former President Trump. These taxes could significantly raise the cost of producing and importing consoles such as the Switch 2.
Also read: Xbox Game Pass may add GTA 5 in April to prepare players for GTA 6 launch – Details
Sales projections remain strong despite challenges
Despite this, DFC Intelligence predicts that the handheld console’s price may increase by 20 percent in two years, reaching $530. Nintendo has already begun shipping units to the US before the tariffs take effect. The company is projected to sell around 15 million units by the end of 2025, slightly below an earlier estimate of 17 million but still marking a rapid rollout when compared to previous generations.
