The game ahead: what will trend in the gaming industry in 2025 and 2026

If you’ve been following the gaming news cycle, you might have noticed a curious duality. On one hand, there’s a buzz about innovation and expansion; on the other, headlines often hint at “layoffs” and “market maturity”of the gaming industry.

More often than not, though, these heady numbers and market predictions tell little to the average gamer, who’s often bearing the brunt of surprises—good or bad— of a sudden, major shift within the market. So, what’s the real story for gamers as we look towards 2025 and 2026? That’s what we’ll try to tell you, from our perspective as specialists, but also as consumers.

Money talks: we’re growing (but that may or may not be good)

First, the big picture. The global gaming industry is indeed poised for continued revenue growth, projected to approach $188.9 billion in 2025 and potentially reaching $205-205.7 billion by 2026, according to forecasts given by Newzoo and Ampere Analysis.

On the surface, that sounds like pure boom times. However, as with all things, context is key: in this case, these expansions occur against a backdrop of global inflationary pressures. And what does that mean for you? Well, while the nominal dollar figures climb, the real growth—the actual volume and accessibility of games and services—might feel a bit flatter.

It’s the well-used, but still applicable, “piece of the pie” analogy: companies within the gaming industry are earning more dollars (the pie’s filling is getting fuller, tastier), but this comes at the expense of your purchasing power: you’re either spending the same or more, but getting less (your piece of the pie is thinner, smaller).

Remember the whole debate about “raising a game’s base price” from a few weeks ago? This is precisely that. In practical terms, this means that we, as gamers, may get potentially smarter products (or, at least, what companies “see as” smart, anyway). On the other hand, you may have to shell out a hundred bucks for something that, until now, was seen at a $60 or $70 on the shelves.

Despite these financial headwinds, the sheer reach of the gaming industry continues to expand. The global gamer population is expected to surpass 3.5 billion in 2025 (again, Newzoo, and this time, corroborated by MIDiA Research) which is an incredible testament to gaming’s universal appeal. Much of this growth isn’t necessarily in established markets like North America or Europe, which are showing signs of maturity.

Instead, it’s flourishing in emerging regions like the Middle East and North Africa (MENA), Latin America (headed by Brazil and Mexico, mostly), and Southeast Asia. This shift means developers are increasingly adapting their games to be more accessible, often with lower hardware demands, and crafting content that resonates with a wider, more diverse global audience.

The rig you’re running on is less important (but still important)

No matter your preferred platform, significant shifts are underway, redefining how and where we interact with our favorite digital worlds.

By Newzoo’s projection, mobile gaming continues its reign as the dominant force, having commanded nearly half of the total market revenue in 2024, a trend set to continue with revenues potentially topping $103 billion in 2025. This growth is heavily fueled by those burgeoning emerging markets—who would’ve guessed that “gaming through a smartphone” would serve as a primary gateway for casual users, eh?

On that note, expect an influx of free-to-play titles and clever “hybrid-casual” games that blend simple, addictive gameplay with strategic monetization. A point of contention for some players, however, might be the ongoing evolution of in-app purchasing strategies, potentially even exploring options outside traditional app stores as regulatory landscapes like the EU’s Digital Markets Act prompt changes.

Yes, Apple, this is about you—and on you, specifically.

When it comes to consoles, after a period of recalibration, the market is anticipated to stage a nice little rebound, with strong growth projected for 2025 and record revenue expected in 2026.

You might think the Switch 2’s arrival would be the sole responsible for this, and while Nintendo will bear a good chunk of this credit, this resurgence will also, by and large, be thanks to the continued strong performance of the PlayStation 5—if they regain their composure by bringing on more exclusives. Now’s not the time to be gun-shy, Sony. Just sayin’…

Microsoft, meanwhile, continues to lean heavily into its Game Pass subscription model, soon strengthened by the full integration of Activision Blizzard titles. You might’ve seen PRG mention this once or twice over the past week or so but, by Microsoft’s own admission, hardware sales are less of a focus for them. A notable trend here is the dwindling relevance of physical game sales, projected to constitute a mere 2% of total industry revenue by 2026. For players who cherish owning physical media, this digital-first future presents a clear shift.

Meanwhile, PC gaming remains robust, showing healthy growth in 2024 and projected to continue outpacing other platforms towards 2031. Its inherent openness remains a key strength, offering unparalleled player choice and fostering continuous innovation. We’re seeing fewer strict console exclusives as many major titles also launch on PC, blurring traditional platform lines.

A key development is the growing player interest in alternatives to Steam, with a desire for DRM-free options and more flexible digital storefronts gaining traction – a clear signal of players advocating for greater control over their game libraries.

AI will be key in development and publishing; and gaming will be more connected

Now this, this is where things might get dicey: there are winds sailing towards the higher adoption of artificial intelligence (AI) applications within gaming. While that does not mean anything crazy like “ChatGPT on Grand Theft Auto”, there might be some fundamental changes on user experience, with more intelligent worlds and responsive gameplay.

Not that this is anything new, mind you: you may remember a handful of games that had an “adaptative difficulty”, where “enemies would learn your strategies” and readjust their approach towards you? That’s all AI, and if things proceed like we think they will, this will become more prevalent and easy to notice.

That’s because AI is rapidly becoming a foundational element in game development. While much of this work happens behind the scenes – from aiding content creation to streamlining art and dialogue – the player will feel its impact directly.

Imagine NPCs that adjust dialogue to your play style and actions, remembering past interactions and engaging in talks that feel genuinely dynamic and personal. It’s no longer about the graphics, or frames per second, nor visual resolutions, shaders and anti-aliasing: it’s about game worlds that feel more reactive, where basically every playthrough is unique.

And while we’re still on PC department (but bringing a topic that will influence all platforms in general) cloud gaming is still, undeniably, on an upward trajectory: projections hint at over $8 billion in 2025, with a compelling core promise: high-fidelity gaming without the need for expensive hardware, allowing you to stream demanding titles to almost any internet-connected device.

We all remember Stadia, Google’s ill-fated attempt at entering the gaming industry, right? Well, it’s that, except done correctly, most likely. We already have a few players on this, too: NVIDIA’s GeForce NOW, Microsoft’s Xbox Cloud, even PlayStation Now, which you might think shuttered in 2022, was heavily incorporated in PlayStation Plus’ most powerful subscription tiers.

It’s likely these will be more prevalent over the next year and a half.

And finally, VR and AR applications in gaming will, probably, continue to grow, but still be seen as outliers. Both topics continue to advance, fostering strong engagement within its existing user base, but mass-market adoption for dedicated gaming, compared to mobile or console, is still a more distant prospect.

These technologies are, however, increasingly integral to broader “metaverse” visions that blend entertainment with social, educational, and even professional applications. Similarly, tech like blockchain and Web3 gaming, despite their underlying potential, will also be relegated, still, to a business perspective of usage (i.e. schools, business presentations, meta applications in closed, intranet-like spaces).

Content, commerce & culture: the “What”, “How” and the “Why” we play will matter even more

Did you watch the South by Southwest streams this year, by any chance? Blizzard’s Johanna Faries had a very interesting take during her panel (with Conan O’Brien, go figure…and yes, we know he’s a major gamer and used to have a spot on his show for it).

We’ll not reproduce the whole thing here, but the overall message she had was one of “gaming as the new, universal language”, essentially becoming some sort of “universal language”. The panel is entirely available on YouTube, and it is an interesting watch (Kojima was there, too, talking about Death Stranding 2: On the Beach, but since most reviews are out now, that’s old news…).

Well, most reputable research solutions out there tend to agree with Faries assessment, claiming the gaming industry as increasingly connected to the public’s daily life. The way we consume, buy and play will all be a pathway for the gaming industry’s business to thrive.

This is more prevalent, nowadays, in how we relate to content. The industry is increasingly leaning into remakes and reboots of established franchises—an obvious, albeit intelligent, attempt at tugging at our heart strings with projects with a high nostalgia appeal.

This strategy often presents a safer bet for publishers given the mixed performance of some recent, ambitious, and prohibitively expensive original AAA titles. However, innovation persists, especially within the thriving indie scene, fueled by accessible platforms like Steam and user-generated content powerhouses like Roblox.

There’s also a discernible trend towards “right-sizing” single-player games, focusing on high-quality, more concise experiences that might not stretch into hundreds of hours. And keep an eye out for more gaming IPs making the leap to film and TV – these “transmedia fandoms” are a powerful force, deepening engagement with beloved universes (hellooooo, Cyberpunk Edgerunners 2—our bodies are ready!).

In terms of monetization, in-app purchases remain the dominant payment method, accounting for a steady 77% of all of gaming industry’s payments in 2024 (Financesonline.com). Subscription services continue their strong growth trajectory, and it wouldn’t be surprising to see existing services introduce even more tiered options, like ad-supported models, for instance.

This reinforces the gaming industry’s firm shift towards digital distribution and access-based models. The balancing act for publishers will be to manage the potential for higher base game prices alongside ongoing monetization, ensuring players feel they are receiving commensurate value.

Perhaps the most significant and consistently positive trend is the cultural aspect of gaming: like we said, it’s becoming more and more mainstream, cementing its place as a core component of our social and cultural fabric.

For Gen Z, gaming is often described as their “social glue,” with a striking 70% of gamers reporting that it helps them connect with others, at least according to Unity’s Gaming Report 2024. Platforms like Discord and Twitch continue to be bustling community hubs where friendships and shared experiences thrive. At the same time, eSports continues its rapid maturation, with mobile competitive titles playing a crucial role in democratizing competitive gaming, making it more accessible and affordable for a massive global audience.

Significant investment, particularly from regions like Saudi Arabia, is further solidifying eSports’ global legitimacy, even leading to universities developing dedicated esports degree programs. This isno longer about watching the pros play; it’s about the gaming industry’s undeniable status as a major cultural and economic force, increasingly standing shoulder-to-shoulder with traditional sports.

Final thoughts: the gaming industry’s next chapters promise a wild ride

Sorry for all that slog of paragraphs: we like to keep things short and sweet but there was so much data to sift through, and very little of it “ignorable”, we kinda got carried away. But after all of that, what’s the ultimate takeaway for those of us who just enjoy a controller in our hands and giving life to digital objects on a screen?

The gaming industry is undoubtedly navigating a period of intense transformation. It’s a landscape shaped by economic realities, technological marvels, and ever-evolving player habits. While there are certainly challenges – from market maturity in some areas to the careful balance of pricing and value – the underlying currents point to a future that’s more interconnected, intelligent, and globally diverse.

For players, this means an increasingly personalized experience, a wider array of accessible games, and a continued expansion of gaming’s role as a vital social and cultural touchstone. It’s a dynamic period, certainly, but one that continues to push the boundaries of what interactive entertainment can be. As a veteran, I find that continuous adaptation, for both the industry and its players, is ultimately what keeps this world so endlessly compelling.

What about you? Any insights you feel like sharing with the audience? Perhaps telling everyone the things you DON’T want in the future of gaming? Let us know in the comments!