According to Midia Research, the worldwide gaming industry's value is projected to hit $236.9 billion by 2025

The international gaming sector is projected to grow 4.6% by 2026, reaching $236.9 billion, and is anticipated to further ascend to $280.1 billion by 2031.

A report from Midia Research explains that with the International Monetary Fund estimating global inflation at 4.2% in 2025, the gaming market's real growth remains stagnant.

In software, revenues are expected to climb 4.4% annually, amounting to $203.2 billion by 2025. This increase is attributed to high-profile releases like Grand Theft Auto 6, games accompanying the "Switch 2" launch, including Monster Hunter Wilds and Assassin's Creed Shadows. By 2031, software revenues might reach $237 billion.

The PC category is expected to expand more rapidly than others, poised to achieve $44.5 billion in 2025, up from $41.6 billion in 2024.

Console software is forecast to hit $47.9 billion this year, improving from $45.1 billion the previous year, while mobile software should grow to $110.9 billion by 2025 from $108.1 billion in 2024.

Hardware revenue is predicted to rise 8.4% year-over-year to $20.6 billion, fueled by the introduction of Switch 2. This follows a 19.9% decline in 2024, affected by Xbox's strategic focus on services and the end-of-life of the original Switch. By 2031, hardware revenue could reach $24.6 billion.

Midia suggests a shift back to premium titles from a period crowded with live-service games, forecasting in-game revenue to diminish to 67% by 2031.

Consoles are expected to continue dominating the market for premium games, capturing 60% market share compared to 38% for PCs.

Regarding subscription services, the report anticipates revenue increases through potential price hikes and ad-supported tiers, but asserts the market has matured.

The inclusion of Call of Duty in Xbox Game Pass has contributed to a 16% rise in overall subscription service revenue, hitting $11.8 billion in 2024. This figure is forecast to climb to $13.1 billion by 2025 and $18.5 billion by 2031.

The global player base is anticipated to grow to 3.27 billion by 2025 and increase to 4.02 billion by 2031. Midia reports that crossover entertainment, exemplified by HBO's The Last of Us and Amazon's Fallout, is appealing to potential new players.

Yet, much of this growth is expected from emerging markets in Latin America, Southeast Asia, and Africa, as internet connectivity and infrastructure improvements attract new participants.

"The gaming industry faces challenging conditions, necessitating smarter strategies for success," noted Midia games analyst Rhys Elliot. "Developers must innovate and avoid laying off talent vital for creating value. Nintendo, FromSoftware, and Naughty Dog illustrate the benefits of retaining talent long-term."

Elliot advised prioritizing efficiency and innovation over trend-following, promoting better treatment for industry professionals: "To expand the market, we must appeal beyond the same player base."

For further insights, you can read the complete report on Midia's website.