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Summary: Although spending on PC and console games decreased slightly last year and older titles dominate playtime, analysts predict that Nintendo and Rockstar will drive significant industry growth in the coming years. This optimism persists despite the recent announcement of historically high US tariffs, which some analysts believe will lead to higher prices and lower sales forecasts.
Recent market analysis from Newzoo and DFC Intelligence indicates that US tariffs will slow rather than halt PC and console game spending in the next few years. The anticipated release of the Nintendo Switch 2 and Grand Theft Auto VI in 2025 is expected to counteract recent stagnation within the industry.
According to Newzoo’s annual report on PC and console gaming (as noted by Eurogamer), overall spending fell by two percent to $80.2 billion last year, indicating a continuation of the slowdown seen since the boost from the pandemic wore off. Although older free-to-play and live-service games dominate the PC market, new premium titles like GTA 6 and the launch lineup for the upcoming Nintendo Switch 2 could propel console revenue to $85.2 billion in 2025 and $92.7 billion by 2027.
However, increasing game prices may influence that growth trajectory. Analysts speculate that Rockstar Games might price GTA 6 as high as $100, while Nintendo recently announced an $80 price tag for Mario Kart World, the flagship title for the Switch 2. Nintendo attributed this pricing to inflation and set a price of $450 for the new hybrid console, but subsequently paused pre-orders in North America due to severe newly imposed tariffs by the White House.
Some of the most substantial tariffs affect Vietnam (46 percent), Japan (24 percent), and Cambodia (49 percent). Additionally, President Trump recently increased tariffs on Chinese imports to an astounding 104 percent. These import taxes will compound for the Switch 2 and many other products utilizing components sourced from these countries.
DFC Intelligence estimates (potentially optimistically) that the pricing for the new handheld could increase by 20 percent over the next two years, reaching $530. Nintendo has reportedly sent numerous Switch 2 units to the US prior to the tariffs being implemented, although the availability timeframe remains uncertain.
The research firm anticipates that Nintendo will sell approximately 15 million units by the end of 2025, a decrease from an initial forecast of 17 million but still an impressive feat for the company. In contrast, the original Switch, Wii, and PlayStation 4 took over a year to reach the same milestone.
