While spending on PC and console games fell slightly last year, with older titles accounting for the most gaming time, analysts expect Nintendo and Rockstar to contribute to strong industry growth in the coming years. Despite the recent announcement of historically high tariffs in the United States, which some analysts say will drive up prices and lower sales expectations, there is still optimism about the gaming market.

Recent market reports from Newzoo and DFC Intelligence predict that U.S. tariffs will slow but not stop PC and console game consumption in the coming years. The Nintendo Switch 2 and Grand Theft Auto VI will be available in 2025 and are expected to reverse the recent industry stagnation.

Newzoo's annual PC and console gaming report (via Eurogamer) noted that overall spending fell 2% last year to $80.2 billion, continuing a slump since the pandemic stimulus subsided. While older free-to-play and live-service games dominate the PC market, new high-priced games like GTA 6 and the recently announced launch lineup for Nintendo Switch 2 are likely to help console industry revenue reach $85.2 billion in 2025 and $92.7 billion in 2027.

However, rising game prices may impact this growth. While analysts believed Rockstar Games could sell GTA 6 for as much as $100, Nintendo recently pushed that boundary by announcing that its flagship Switch 2 launch game, Mario Kart World, would cost $80. Nintendo blamed inflation for pricing its upcoming hybrid console at $450, but suspended North American pre-orders after the White House announced tough tariffs globally.

Some of the most severe tariffs affect Vietnam (46%), Japan (24%) and Cambodia (49%). Additionally, President Trump recently increased anti-China tariffs to a staggering 104%. These import taxes will impact the Switch 2 and many other devices manufactured with components from these and other countries.

Meanwhile, DFC Intelligence estimates (perhaps optimistically) that the price of the new handheld console could rise 20% over the next two years, to $530. Nintendo had been shipping a large number of Switch 2 units to the U.S. before the tariffs took effect, but how long they can last remains to be seen.

The research firm expects Nintendo to sell around 15 million units by the end of 2025, down from its initial forecast of 17 million units but still unprecedented for the company. By comparison, it took more than a year for the original Switch, Wii and PlayStation 4 to reach 15 million unit sales.