The video game industry has weathered a tumultuous period, but a new report from DFC Intelligence suggests a significant turnaround is on the horizon. With a forecasted 15% growth in the PC and console game software market over the next four years, the industry is poised to bounce back from the challenges it has faced in recent years.

Unlocking the Future: The Video Game Industry's Promising Trajectory

Weathering the Storm: The Industry's Turbulent Past

The video game industry has endured a challenging period, marked by mass layoffs, extensive closures, and acquisitions of small and mid-sized studios. DFC Intelligence, a leading research and advisory firm focused exclusively on the industry, has been monitoring and analyzing these trends for over three decades. "We've been monitoring and analyzing the video game industry since 1995, and over the past 30 years, it's grown twenty-fold," said DFC Intelligence Founder and Principal David Cole. "While the pandemic initially boosted the market tremendously, it's been trending downward since early last year, with 2024 representing a chaotic nadir that included mass layoffs, extensive closures, and acquisitions of small and mid-sized studios."

A Promising Outlook: The Industry's Projected Resurgence

However, the new report from DFC Intelligence suggests a significant turnaround is on the horizon. The firm forecasts a 15% growth in the PC and console game software market over the next four years, taking it from $72 billion in 2024 to $83 billion in 2028. This would mark a substantial shift for an industry that has faced numerous challenges in recent years. "2025 will be a new beginning for the industry, with a long period of significant growth ahead," the report suggests.

Shifting Trends: The Changing Landscape of Hardware and Software Sales

The report also highlights some intriguing trends in the industry. In 2023, high-end game consumers spent more on game-related hardware than on software for the first time. This includes console systems, gaming PCs, and other related accessories. DFC Intelligence expects this trend to continue for the foreseeable future, driven by the anticipated releases of the PlayStation 5 Pro and the Nintendo Switch 2. However, the report suggests that only two upcoming console systems are expected to gain meaningful market penetration, with little news on upcoming consoles from Microsoft.

A Comprehensive Outlook: Accessing the Full DFC Intelligence Report

For those eager to delve deeper into the industry's future, the full DFC Intelligence report will be available in December. A summary of the report's key findings will also be released in a newsletter, providing a comprehensive overview of the video game industry's promising trajectory.