In a nutshell: Although spending on PC and console games declined slightly last year, and older titles take up the most playtime, analysts expect Nintendo and Rockstar to contribute to strong industry growth over the next few years. The optimism comes despite the recent announcement of historically high US tariffs that some analysts say will increase prices and lower sales expectations.

Recent market reports from Newzoo and DFC Intelligence predict that US tariffs will slow but not stop PC and console game spending over the next few years. The Nintendo Switch 2 and Grand Theft Auto VI, arriving in 2025, are expected to reverse recent industry stagnation.

Newzoo’s annual PC and console gaming report states (via Eurogamer) that overall spending fell two percent to $80.2 billion last year, continuing the sluggishness seen since the pandemic boost wore off. Although older free-to-play and live-service games dominate the PC market, new premium-priced titles like GTA 6 and the recently announced Nintendo Switch 2’s launch lineup could help console sector revenue reach $85.2 billion in 2025 and $92.7 billion in 2027.

However, rising game prices might impact that growth. While analysts have theorized that Rockstar Games could get away with selling GTA 6 for up to $100, Nintendo recently pushed the envelope by announcing an $80 price tag for Mario Kart World, the Switch 2’s flagship launch title. Nintendo blamed inflation for its decision to charge $450 for the upcoming hybrid console but paused pre-orders in North America after the White House announced severe worldwide tariffs.

Some of the worst duties impact Vietnam (46 percent), Japan (24 percent), and Cambodia (49 percent). Furthermore, President Trump recently increased anti-China tariffs to a staggering 104 percent. The import taxes would compound for Switch 2 and many other devices built with components from these and other countries.

Meanwhile, DFC Intelligence estimates (perhaps optimistically) that the new handheld’s price could rise by 20 percent over the next two years, increasing to $530. Nintendo has already shipped numerous Switch 2 units to the US ahead of the tariffs, but how long they will last remains to be seen.

The research firm expects Nintendo to sell around 15 million units before the end of 2025 – down from an initial projection of 17 million but still unprecedented for the company. In comparison, the original Switch, Wii, and PlayStation 4 took over a year to reach 15 million.