Midia Research: Global games industry estimated to reach $236.9bn in 2025
Report highlights that as the IMF projects a global inflation rate of 4.2% this year, the “global games market is essentially flat”
The global games industry is predicted to increase by 4.6% in 2026 to $236.9 billion, and is expected to reach $280.1 billion in 2031.
This is according to a new report by Midia Research, which notes that as the International Monetary Fund has projected the global inflation rate to be 4.2% in 2025, “the global games market is essentially flat.”
Looking at software, the firm predicts revenues to rise by 4.4% year-over-year to $203.2 billion in 2025. It highlights gains from “several premium releases” this year and in 2026, including Grand Theft Auto 6 and “Switch 2 launch-window games” as well as titles such as Monster Hunter Wilds and Assassin’s Creed Shadows. By 2031, software revenue is estimated to grow to $237 billion.
PC software is “predicted to outpace other segments towards 2031,” reaching $44.5 billion in 2025 compared to $41.6 billion in 2024.
Console software is estimated to reach $47.9 billion this year compared to $45.1 billion last year, while mobile is forecast to reach $110.9 billion in 2025 compared to $108.1 billion compared to 2024.
Hardware revenues are projected to grow by 8.4% YoY to $20.6 billion, driven by the Switch 2 launch. This follows a decline of 19.9% in 2024 “when Xbox struggled due to its focus on services and off-platform revenues and the original Switch neared the end of its life cycle.” Hardware revenues are estimated to reach $24.6 billion in 2031.
According to Midia, a key change for the rest of the decade is a refocus on premium titles following an “oversaturation of live-serve games”. As a result, in-game revenue is forecast to decrease to 67% by 2031.
The firm predicts that consoles will continue to be the most popular choice for premium games, with the ecosystem taking up 60% of the market share compared to 38% on PC.
As for multi-game subscription services, the report says that while revenues may see a boost from price increases and the potential addition of ad-based tiers, it has “reached maturity.”
Midia highlights how Call of Duty’s addition to Xbox Game Pass helped overall subscription service numbers rise by 16% YoY to $11.8 billion in 2024. It predicts this amount to grow further in 2025 to $13.1 billion, followed by $18.5 billion in 2031.
The number of global players is expected to increase in 2025 to 3.27 billion, and even further by 2031 to 4.02 billion. Midia notes that cross-entertainment is adding potential consumers via adaptations such as HBO’s The Last of Us and Amazon’s Fallout.
However, it predicts that “most new players will enter the market via emerging countries and regions such as Latin America, Southeast Asia, and Africa.” Midia notes that as internet access and online infrastructure continues to improve, more players will emerge from these areas.
“Things will continue to be difficult in the games market, and these challenging market conditions mean developers are being forced to think smarter to succeed,” said Midia games analyst Rhys Elliot. “Luckily, the industry is teeming with some of the smartest, most creative, and passionate minds in the world. Just don’t expect double-digit growth.”
Elliot continued: “Laying off the employees who create value is short-sighted. After all, a big reason why Nintendo, FromSoftware, and Naughty Dog are so successful is because they retain and nurture talent long term.
“My recommendation: less waste, less trend-chasing, more innovation, more data-backed segmentation and better (read: humane) treatment of the people in the industry creating value. The market can’t keep catering to the same gamers and expect the pie to grow.”
