Next-level growth for gaming industry delayed to 2026 with GTA VI release, Newzoo report

The highly anticipated launch ofGrand Theft Auto VI, now confirmed for 2026, has deferred hopes of a major uplift in the global videogame market this year, according to a report by research firm Newzoo, shared withReuters.

Initially expected to power industry growth in 2025, the blockbuster title’s delay has led analysts to revise forecasts. The global videogame market is now projected to grow by 3.4 per cent next year, up slightly from a 3.2 per cent increase in 2024. Though positive, the uptick is modest and reflects the absence of major software launches in the immediate term.

“This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines,” said Michiel Buijsman, principal analyst at Newzoo.

The market’s longer-term outlook has also been adjusted. Newzoo now expects the sector to expand at a compounded annual growth rate of 3.3 per cent through to 2027, down from its earlier projection of 3.7 per cent.

Growth momentum is now largely expected to come in 2026, whenGTA VI is due for release alongside other high-profile titles such as Capcom’sResident Evil Requiem. The anticipated PC version ofGTA VI, expected post-console launch, is forecast to further support market expansion into 2027.

Meanwhile, hardware sales are facing headwinds. Recent price increases to Sony’s PlayStation and Microsoft’s Xbox consoles, partly driven by tariffs, have stirred concerns over consumer demand amid ongoing economic uncertainty. In contrast, Nintendo’s upcoming Switch 2 console is off to a strong start, quickly becoming the company’s fastest-selling hardware.

Adding to the hardware narrative, Microsoft recently unveiled the Xbox Ally — a handheld console developed in partnership with ASUS — which is set for release during the 2025 holiday season.

While 2025 may serve as a transitional year for the industry, with incremental growth and ongoing platform shifts, experts suggest that the real gains lie ahead, with 2026 shaping up to be a pivotal moment for both developers and gamers worldwide.

(With inputs from Reuters)