State of the Video Game Industry

All eyes are on the $178 billion video game business in 2025, a year that will likely be defined by the performance of one new major console and the delay of what would have been the biggest game of the year.

Franchise behemoth “Grand Theft Auto 6” was expected to drop at an undetermined date in the fall, but publisher Rockstar in May pushed the game to May 26, 2026.

And while Nintendo Switch 2 does have a clear June 5 release date, President Trump’s unpredictable tariff policies have already had a demonstrable impact on the new console’s asking price amid speculation that overall hardware sales will struggle this year.

The new 23-page “State of the Video Game Industry” report represents the fourth consecutive year Variety Intelligence Platform has done a thorough exploration of this world, with this 2025 edition putting particular emphasis on how IP such as “A Minecraft Movie” and “The Last of Us” are gaining currency in Hollywood.

The data-fueled report also examines the connection between gaming IP and the industry seeking it out for transmedia purposes, as well as how that plays when the roles are reversed.

No trend impacting this dynamic sector goes unnoticed, from the elevated level of layoffs that have persisted since 2023 to the M&A activity reshaping primarily mobile and online companies including Scopely, which scooped up “Pokémon Go!” and other Niantic gaming assets in a proposed $3.5 billion deal this year.

Meanwhile, the biggest AAA games from reputable publishers are undergoing dramatic strategy shifts. Titles such as “Assassin’s Creed Shadows” are now forming the backbone of company spinoffs, as is currently underway at Ubisoft, to better preserve and boost profitability for these franchises.

VIP+ has amended the text above to reflect the news of the release date for “Grand Theft Auto 6,” which broke the day after we published this report.