Newzoo: Gaming Market surpassed $200 Billion in 2025 - sponsored by PWN Games
A lot of things went better than expected in 2025 compared to the initial Newzoo expectations.
Newzoo includes spending on physical and digital game copies, in-game purchases, subscription services (such as Xbox Game Pass), and mobile platform revenue. Newzoo does not include advertising revenue, console and peripheral sales, B2B services, gambling, or betting.
All figures are reported before taxes.
The games market in 2025
According to Newzoo’s latest estimates, the global games market reached $201.6 billion in 2025 (+9.1% YoY). This exceeded initial expectations, driven by stronger-than-expected PC market performance, D2C revenue growth, mini-games, and successful releases.
The mobile market reached $113.3 billion in 2025 (+10.7% YoY). This was above forecast despite declining download volumes. However, Newzoo highlights several concerning trends: paid user acquisition costs continue to rise, while developers are increasingly focused on monetizing their existing audiences.
The console market grew to $44.7 billion (+2.8% YoY). Increased spending on new game releases and subscription services more than offset declines in DLC and microtransaction revenue. The launch of Nintendo Switch 2 contributed significantly to growth, with more than 15 million units sold during its first seven months on the market.
The PC market grew by 12% in 2025, reaching $43.6 billion. Not only was this figure above forecast, but the growth rate itself was the highest recorded in Newzoo’s history.
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Revenue mix on PC and consoles
Game sales increased by 25% YoY on PC and by 8.1% YoY on consoles, supported by a strong lineup of new releases.
Microtransaction revenue on PC increased by 9.1% YoY. Newzoo specifically highlights the growth of Counter-Strike 2 and Roblox.
On consoles, however, microtransaction revenue declined by 4.6% YoY. Fortnite and Call of Duty underperformed compared to previous years. Given how concentrated player spending is within these titles, any slowdown in their monetization has an immediate impact on the broader segment.
Subscription services (PlayStation Plus, Xbox Game Pass) grew revenue by 10.2% YoY in 2025.
Regional breakdown
Every region posted revenue growth in 2025. North America grew the slowest, increasing by 5.7% YoY to $54 billion.
The Asia-Pacific region delivered particularly impressive results. Despite already being the largest regional market at $95 billion, it still grew 9.9% YoY, largely driven by growth in Japan and South Korea.
MEA grew by 15% YoY to $7.7 billion, making it the fastest-growing region globally. Latin America grew by 9.6% YoY, reaching a total market size of $8.6 billion.
Europe ranked second in growth, up 10.7% YoY to $36.3 billion. Growth was driven by several factors simultaneously: a strong PC gaming audience, a favorable euro-to-dollar exchange rate, and growing interest from mobile developers in the European market. European PC revenue increased by 15.7% YoY, while mobile revenue grew by 15.5% YoY. 2025 marked the third consecutive year in which Europe’s mobile market outperformed the global average growth rate.
Forecast for 2026–2028
Newzoo expects a CAGR of 5.1% between 2025 and 2028. By the end of this period, the market is projected to reach $234.4 billion.
The forecast has been adjusted to account for rising gaming hardware prices, the launch of GTA VI, and potential structural challenges in the mobile market.
According to Newzoo, 64% of all PC gaming time in 2025 was spent in games released before 2019. These titles generally do not require hardware upgrades.
The previously anticipated announcement and launch of a new console generation in late 2027 now appears unrealistic. Considering supply chain issues experienced at the start of the current generation, rising component costs, and the unrealized potential of existing hardware, the current generation is likely to remain on the market longer than previously expected.
The mobile market is also being affected by hardware-related challenges. Smartphone shipments declined by 6% YoY in Q1 2026 as consumers reduced purchases in response to rising device prices.
Thanks to the release of GTA VI, Newzoo expects console revenue to grow to $46.9 billion in 2026 (+5.1% YoY). If the game is delayed for any reason, the entire console market could end 2026 in decline.
Despite GTA VI launching on consoles, Newzoo expects the PC market to continue growing at a faster pace. The forecast for 2026 is +5.3%, driven primarily by the Chinese market and Honor of Kings: World.
The mobile market is projected to grow to $121.1 billion in 2026 (+6.8% YoY). Growth is slowing, but remains impressive given the size of the segment. The primary growth drivers are expected to be Chinese publishers with Merge and 4X titles, mini-games within WeChat, and the continued expansion of D2C solutions.