According to DFC Intelligence, the Nintendo Switch 2 is anticipated to emerge as "the clear winner" among next-generation gaming consoles

The gaming industry is anticipated to experience significant expansion in 2025, driven by the much-anticipated releases of the Switch 2 and Grand Theft Auto 6.

According to the latest market report and outlook from DFC Intelligence, as highlighted by VGC, Nintendo is expected to outpace Sony and Microsoft, with the potential for only one of these companies to keep up with Nintendo's new console.

The report emphasizes that "there isn't room for more than two major consoles," suggesting that either Sony or Microsoft will face significant challenges securing the third position, which heavily depends on which company gains a head start.

Sony is seen as having an advantage owing to its "dedicated fanbase and strong Sony IP." On the other hand, Microsoft is set to become "the world's largest software publisher" following its integration of Activision Blizzard in October 2023.

Moreover, DFC Intelligence forecasts that the global gaming population will exceed four billion by 2027.

David Cole, founder and CEO of DFC Intelligence, remarked that, "The video game sector has expanded over 20-fold in the last 30 years. After a slowdown in hardware and software sales, the industry is set to grow at a substantial rate through the decade's end."

Cole further stated that while 2025 will kickstart this growth, major uncertainties persist, including the outcomes of the next-gen console battle and the game software distribution competition.

He also noted that with major companies concentrating on live services for enduring franchises, smaller development studios will find abundant opportunities.