It hasn’t been all fun and games for video game studios this year. After a pandemic boom, the sector has experienced a slowdown — with fewer users, modest declines in revenue, and later, industry-wide layoffs. However, a new report suggests that 2025 might be the year that gaming restores its HP bar.
- According to Newzoo, the games industry is set to grow 2.1% year-over-year (YoY) in 2024 — up from 0.6% last year but still less than expected.
- The report highlights that the 2025 launch of Nintendo’s new Switch console and the Take-Two’s Grand Theft Auto 6 will “boost the industry’s prospects.”
X to celebrate: In support of the gaming rebound, entertainment firm Tencent Holdings reported an 82% increase in net income in its latest quarterly results — an indicator that some of the industry angst is expiring in China. After a decline in 2022, YoY growth returned last year, with revenues reaching a new record as competition heated up among goliaths like NetEase and Mihoyo.
