2025 Gaming Industry Review: Key News and Developments

The gaming industry in 2025 was characterized by substantial developments, including major acquisition deals such as the purchase of EA by a group of investors and Netflix's acquisition of Warner Bros. The year also saw significant studio closures, including Warner Bros. Games San Diego and Monolith Productions, with the latter being a notable loss given its 30-year history and iconic titles like No One Lives Forever and Middle-earth: Shadow of Mordor. The Switch 2's launch by Nintendo was a major hardware event, selling over 3.5 million units in its first four days and 10.36 million units in the first four months, doubling the original Switch's sales over the same period. However, the Switch 2 faced criticism over the lack of indie games and the use of Game-Key Cards, which raised concerns about game preservation. On the software side, the year saw the breakout success of indie co-op games like Peak, which achieved 10 million sales by the end of August, and Hollow Knight: Silksong, which sold over 7 million copies in three months and caused a rush of release date shifts by other game companies. The legal landscape saw significant battles, including Sony's lawsuit against Tencent over the game Light of Motiram, which was eventually settled, and Microsoft's job cuts affecting around 4% of its workforce, including the shuttering of The Initiative studio. The industry also faced challenges related to AI, with controversies over the use of generative AI in game development and concerns about job displacement. Regulatory changes, such as the UK's Online Safety Act, required companies to implement effective age verification measures, leading to challenges for some game firms. The year ended with significant announcements, including Take Two Interactive's delay of GTA 6 to November 2026 and Valve's reveal of the Steam Machine, a console-like device set to release in early 2026, which could potentially be an industry turning point. Overall, 2025 was a year of substantial change and evolution in the gaming industry, marked by both opportunities and challenges that will shape its future.