The video game industry is set to bounce back from its recent slump, DFC Intelligence suggests in its 2024 market report

Nintendo's Next Console Will Drive Major Industry Growth In 2025, Analyst Predicts

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The sales of Nintendo's upcoming console will add to an ongoing trend of high spending on gaming hardware, which surpassed PC and console software sales in 2023. The category includes not only video game consoles, but PC parts and accessories, and handheld devices like the Steam Deck. This trend is driven by the core gaming audience, especially PC players who see high-end gaming hardware as a status symbol. Despite the cost of some video game accessories and hardware, DFC points out that it is still far more affordable than other hobbies like "sports cars, arts/antique collecting, travel, skiing, golf etc."

Despite the favorable outlook for hardware sales, DFC is predicting that there will be a major loser in the next generation of console wars--which could be either Sony or Microsoft depending on a number of variables. Getting in early is likely to be the deciding factor, but DFC also says a portability feature, like the Switch's, could make a difference. At this point Sony has a slight advantage thanks to its loyal user base, while Microsoft could pivot to focus on software and distribution as the largest software publisher in the industry.

"Overall, 2025 is also shaping up to be one of the best years ever for new game releases," DFC adds, singling out the highly anticipated release of GTA 6, which is expected to break records. The firm also expects that new consoles from Microsoft and Sony will release sometime between 2026 and 2028, contributing to DFC's prediction that PC and console revenue will reach $200 billion a year by 2028.

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This story originally appeared on: GameSpot - Author:UK GAG