- Console software sales hit a record high in 2025 as global software gross went up 5.3% to $195.6 billion.
- The PC gaming market is also continuing to thrive, growing 30% since the pandemic-induced high of 2020.
- However, investment in the gaming sector fell by 55% last year, signaling a worrying trend for the industry.
There has been a lot of doom and gloom in the gaming industry lately due to the AI boom and the rising costs of gaming components, which are pricing out a large consumer base. Due to the current situation, the PC market share in the industry is expected to drop by a solid 7-9% in 2026.
However, the bigger picture is still more positive than negative. According to analyst Matthew Ball, global revenue from video game content sales actually increased in 2025, amassing a whopping $195.6 billion across all platforms.
Why it matters: Despite numerous hurdles, the gaming industry continues to set new records, but the real test for the sector will come in 2026.
According to Ball’s State of Video Gaming report, software sales rose by 5.3% in the global gaming market last year, with console software grossing a record-high of $41.6 billion.
The numbers on the console side even crossed the record revenue generated during the pandemic, surpassing that threshold by 2.3%. However, most of this amount has been spent on services such as PlayStation Plus, Xbox Game Pass, and Nintendo Switch Online.
In reality, raw game sales have taken a hit, down 11% in 2025, underscoring why giants like Xbox are emphasizing subscription services.
On the other hand, PC Gaming is thriving and contributed heavily to the $195 billion total. The PC software market has grown consistently by 30% since the 2020 pandemic, and Chinese players account for a large chunk of this consumer base, making up 20% of global spending.
Nevertheless, the gaming industry is facing a shortage in investment, as funding from private firms dropped by a whopping 55% last year. Therefore, unless this trend reverses, smaller studios will continue to hang in the balance if their titles aren’t huge hits.
Do you think the gaming industry will feel the brunt of the memory crisis in 2026, or will it continue to coast? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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