Record $200 billion and mass layoffs: game market paradox in 2025

6/19/2026, 11:25 AMЕвгения Слив

According to Newzoo, the global video game market surpassed $200 billion for the first time, earning $201.6 billion in 2025. The growth leaders were mobile segment, PC and console. However, this financial triumph contrasts with the protracted crisis: amid record-high industry revenues, mass layoffs and studio closures continue apace.

Experts link this paradox to huge increases in costs. The development budget for one AAA game exceeds $300 million, and prices for iron and memory are rising steadily. To offset costs, publishers are forced to increase the cost of consoles, games themselves, and subscription services.

Despite optimistic forecasts and expectations of super-profits from future hits like GTA 6, the state’s optimization continues. This summer alone, Xbox and Bungie Studios are planning massive cuts, which confirms that rising revenue does not save the company from having to cut costs.

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