The Gaming Industry Is Making $197 Billion In 2025, And It Is All Coming Out Of Your Pocket

News
Written By NLM Team

If you felt like your bank account was draining faster than usual this year every time you bought a game, you were right. The industry is booming, but the cost of entry has never been higher.

According to a new report from Newzoo (via Derek Strickland at TweakTown), the global video games industry is projected to hit a record-breaking $197 billion in revenue for 2025. That is a massive number. It is a 7.5% jump over last year. But before we pop the champagne for the shareholders, we need to look at why that number is so high. It isn't just because more people are playing. It is because everything costs more.

PC Is About To Overtake Console

One of the most interesting takeaways from the data is the platform war. Mobile gaming is still the undisputed king, raking in a staggering $108 billion (55% of the total). We can complain about microtransactions all we want, but they clearly work.

The real battle is happening below that. Console revenue sits at $45 billion, while PC revenue is right on its heels at $43 billion. The gap has almost vanished. Microsoft seems to have predicted this, which explains reports that the next Xbox will essentially be a Windows 11 PC disguised as a console. The line is blurring, and PC gaming is becoming just as lucrative as the traditional living room box.

The Price of "Record-Breaking" Revenue

So how did they make all this money? By squeezing us.

The report highlights that this revenue jump is driven largely by price increases. We saw Nintendo launch the Switch 2 in June, which obviously drove hardware spend. But we also saw the normalization of the $80 AAA game, with Mario Kart World proving that people will happily pay a premium for high-quality nostalgia.

Microsoft didn't hold back either. They raised Xbox console prices twice in 2025. Even worse, Xbox Game Pass Ultimate saw a brutal price hike, jumping from $20 to $30 a month. That subscription is now a serious monthly bill, not just a casual add-on.

Nowhere To Hide

It puts gamers in a tough spot. As Reddit user jugaverdasorda perfectly summarized in the comments:

"The ridiculous console price increases are happening just in time for people to make the switch to PC gaming only to get punched in the face by scalped RAM prices which will shortly probably make GPU prices shoot up again. What a time to be alive."

They are absolutely right. Console gaming is becoming a luxury hobby with $700+ hardware and $80 games. PC gaming is getting hammered by component shortages and scalpers. The industry is making nearly $200 billion, but for the average player, 2025 is shaping up to be the most expensive year in history to enjoy the hobby.

We are breaking records, alright. Just not the fun kind.

YOU MIGHT ALSO LIKE

NLM Team
Next

Hideo Kojima Just Dropped The Roadmap For The Next 10 Years, And Yes, We Need To Talk About ‘OD’