According to the latest projections from market‑research firm Newzoo, the worldwide video‑game industry is set to expand by 6.1% in 2026, bringing total revenues to roughly $213.9 billion. More than half of this spending will be generated by players in just two countries – China and the United States – underscoring the continued dominance of these two markets in the global ecosystem.
The figures come from Newzoo’s Global Games Market Report, which will be released in full on September 10. The report breaks down the forecast by platform, region, and business model, offering a detailed view of where growth is expected to originate and which trends will shape the industry over the next few years.
**Console segment** Console sales are predicted to account for 22% of the total market, translating to about $46.9 billion in revenue. This represents a 5.1% increase over the previous year and reflects steady demand for next‑generation hardware and flagship titles. A key driver for this uplift is the highly anticipated release of Rockstar Games’ Grand Theft Auto VI in November 2026.
Newzoo expects the game’s launch to lift full‑game spending by 17.5%, the strongest growth rate among all business models tracked in the report. The title’s massive fan base and the franchise’s history of record‑breaking sales are likely to push console purchases, hardware upgrades, and ancillary merchandise higher than usual. **Mobile gaming** Mobile remains the largest platform by a wide margin, expected to capture 57% of global gaming revenue – roughly $121.1 billion.
This segment is projected to grow 6.8% year‑on‑year, driven by two complementary forces. First, players are spending more per user, with higher average revenue per paying user (ARPPU) as premium titles and live‑ops experiences become more sophisticated. Second, the rise of direct‑to‑consumer (D2C) distribution channels is giving developers greater control over pricing, promotion, and data collection.
A recent FastSpring and Omdia survey found that 96% of studios either already run a D2C web store or plan to launch one, citing benefits such as stronger brand visibility, deeper player loyalty, and richer first‑party data insights. **PC gaming** The PC market is forecast to hold the smallest share at 21%, amounting to $45.9 billion.
Growth is expected to slow to 5.3% year‑on‑year, down from the 12% compound annual growth rate (CAGR) that Newzoo projected for 2025. Despite the deceleration, PC gaming is still poised for geographic diversification, with notable expansion in the Asia‑Pacific, Latin America, and Middle East‑Africa (MEA) regions. Premium and mid‑priced releases will continue to sustain full‑game revenue on PC, while microtransactions are expected to reclaim the top spot as the most lucrative business model overall. **Player base dynamics** The global player population is projected to reach 4.07 billion by 2029, growing at a 3.2% CAGR after a 4.4% rise in 2026.
However, Newzoo cautions that future growth will rely increasingly on retaining and monetising existing gamers rather than on attracting brand‑new users. Penetration rates are expected to inch up from 61.5% to 62% in 2026, indicating limited headroom for expanding the base through deeper market saturation. Instead, the industry will focus on extracting more value from the current online population, which is itself expanding by about 3.5% to reach 5.97 billion people.
**Regional outlook** Emerging markets are the primary engines of growth, with the Asia‑Pacific region remaining the largest contributor to revenue and player numbers. The Middle East and Africa are expanding the fastest, reflecting rising smartphone adoption, improving broadband infrastructure, and increasing disposable income.
Mobile players alone are estimated to hit 3.10 billion in 2026, representing 84% of the total gaming audience. PC users are projected at 977 million (about 26% of the market), while console enthusiasts will number around 651 million (approximately 18%). **Business‑model shift** Microtransactions, which encompass in‑game purchases such as cosmetics, battle passes, and loot boxes, are forecast to regain their position as the largest revenue‑generating model across all platforms. This resurgence is linked to the continued success of live‑service titles that keep players engaged for months or even years after launch.
At the same time, premium full‑game sales will remain important, especially for blockbuster releases on consoles and PC that command higher price points. **Implications for developers and publishers** The data suggests that studios will need to balance investment between high‑impact flagship releases – like Grand Theft Auto VI – and the ongoing development of live‑service ecosystems that drive microtransaction revenue. Moreover, the growing emphasis on D2C storefronts means that companies must build robust e‑commerce capabilities, cultivate direct relationships with their audiences, and leverage first‑party data to personalise offers and improve retention. In summary, Newzoo’s outlook paints a picture of a mature yet still expanding gaming market.
While overall revenue growth remains healthy at just over six percent, the composition of that growth is shifting: mobile continues to dominate in sheer volume, consoles benefit from marquee titles, and PC markets diversify geographically. Success in the coming years will hinge on a developer’s ability to retain existing players, monetise them effectively through a mix of premium sales and microtransactions, and harness the power of direct‑to‑consumer channels to deepen brand loyalty and extract richer insights from player behaviour.