According to research firm Newzoo on Monday, videogame consoles, fueled by anticipated strong sales of Take-Two's "Grand Theft Auto VI" and Nintendo's next-generation Switch, are projected to drive substantial market growth until 2027. The industry has been slowly recovering from a post-pandemic decline, impacted by economic uncertainties and high inflation, leading to cutbacks and cancellations in 2024. However, analysts anticipate a resurgence with the upcoming releases of the new Switch and "GTA VI" later this year.
"Grand Theft Auto VI" is a predecessor known for its global success, having sold over 210 million copies by December 2024. Nintendo recently projected its full-year sales ahead of the new console’s launch. Major console releases like Sony's "Spider-Man" and "God of War" are drawing players, as highlighted by Emmanuel Rosier, Newzoo's director of market analysis. The report forecasts a 7% growth in console software revenue from 2024 to 2027, surpassing PC's 2.6% rise.
Console revenue in 2027 is expected to make up over 56% of the combined PC and console software revenue of $92.7 billion. The total playtime increased by 6% last year, with the fourth quarter seeing peak playtime due to the launch of Activision Blizzard's latest "Call of Duty" game.