Revenue from the US video game industry might drop in 2024, but a comeback is predicted for 2025 thanks to Grand Theft Auto VI and Switch 2.
The Future of Games report by Circana, published today, highlights how the video game industry saw massive growth during 2020 and 2021 as people turned to gaming for entertainment and social connection during the pandemic.
Since those peak times in 2021, fewer people are playing video games and spending less time on them. Circana notes that rising prices for essentials like groceries have left people with less money to spend on games.
In 2024, revenue from video game hardware is expected to keep falling. This is because fewer units are being sold and their prices are dropping. Many gamers are now using more accessible platforms like PCs and mobile devices, which has softened the blow for the console market.
“This year will remain tough for game makers and publishers as overall spending is predicted to dip slightly,” said Piscatella.
However, Piscatella believes that in 2025, the US video game industry will recover. The highly anticipated Grand Theft Auto VI and Switch 2 are expected to play a big role in this turnaround.
“Nintendo’s next-gen hardware platform is expected to debut in the first half of the year and should boost the industry significantly. Plus, Grand Theft Auto VI might become the biggest entertainment launch ever in the US,” Piscatella mentioned.
Fans hope this prediction comes true.
This year, not only are revenues falling but also many major developers are laying off employees. Over 10,000 jobs in the video game industry have been cut worldwide so far in 2024.
