Newzoo Forecasts Global Gaming Industry to Reach $213.9 Billion by 2026, Up 6.1% YoY

According to the latest outlook from market‑research firm Newzoo, the worldwide video‑game industry is set to expand by roughly 6.1% over the next year, pushing total revenues to an estimated $213.9 billion in 2026. The projection underscores the continuing dominance of two key territories—China and the United States—where more than half of all consumer spend on games is expected to originate.

The figures come from Newzoo’s Global Games Market Report, which will be released in full on 10 September. The report breaks down the forecast by platform, business model and regional dynamics, offering a detailed picture of where growth is likely to come from and what challenges the sector may face. **Console segment** Console‑related revenue is predicted to represent about 22 % of the total market, equating to roughly $46.9 billion. This marks a 5.1 % year‑on‑year increase and reflects a modest but steady recovery after the pandemic‑driven surge.

A major catalyst for the console space is the anticipated November launch of Rockstar Games’ highly‑anticipated title Grand Theft Auto VI. Newzoo expects the new installment to lift full‑game spending by an impressive 17.5 %, labeling it the strongest growth rate among all business models for the year. The excitement surrounding GTA VI is also expected to spill over into ancillary sales such as downloadable content, premium editions and in‑game accessories.

**Mobile dominance** Mobile gaming remains the powerhouse of the industry, projected to capture the largest share at 57 % of total revenue, or $121.1 billion. The sector’s growth rate of 6.8 % YoY is driven by two intertwined trends. First, players are spending more per user, with higher average revenue per daily active user (ARPDAU) across both casual and mid‑core titles.

Second, the rise of direct‑to‑consumer (D2C) distribution channels—where developers sell games and in‑app purchases directly through their own storefronts—has opened new monetisation pathways and reduced reliance on traditional app‑store fees. A recent survey conducted by FastSpring and Omdia revealed that 96 % of game studios either already operate or plan to launch a D2C web store.

Studios cite better brand visibility, stronger player loyalty and direct access to first‑party customer data as primary motivations. These insights enable developers to tailor experiences, run targeted promotions and refine pricing strategies based on real‑time behavioural analytics.

**PC outlook** The personal‑computer segment is expected to hold the smallest slice of the market, at 21 % or $45.9 billion. Growth for PC games is forecast at 5.3 % YoY, a slowdown compared with the 12 % compound annual growth rate (CAGR) that Newzoo had projected for 2025. The deceleration reflects a maturing market and the increasing competition from mobile and console platforms.

Nevertheless, PC growth is anticipated to be geographically broad‑based, with notable expansion in the Asia‑Pacific region, Latin America and the Middle East‑Africa (MEA) corridor. **Business‑model shifts** Premium and mid‑priced releases are expected to continue sustaining revenue from full‑game sales, while microtransactions are projected to regain their status as the leading business model in terms of total income.

This resurgence is tied to the growing sophistication of in‑game economies, the popularity of battle‑royale and live‑service titles, and the increasing comfort of players with small, recurring purchases. **Player base trends** The total number of gamers worldwide is forecast to reach 4.07 billion by 2029, growing at a compound annual rate of 3.2 % after a 4.4 % increase in 2026. Newzoo notes that future expansion will rely more on retaining and monetising existing players rather than on attracting large numbers of new users.

This shift reflects the limited headroom for deeper market penetration; player penetration is expected to edge up from 61.5 % to 62 % in 2026, as the online population itself expands by about 3.5 % to reach 5.97 billion. **Regional dynamics** Growth continues to be concentrated in emerging markets. The Asia‑Pacific region remains the largest contributor to total revenue, while the Middle East and Africa are expanding at the fastest pace.

Mobile gaming will dominate player counts, with an estimated 3.10 billion mobile gamers in 2026—accounting for roughly 84 % of the total player base. PC gamers are projected at 977 million (about 26 % of all players) and console gamers at 651 million (approximately 18 %).

**Implications for developers and publishers** The data suggests that studios should prioritize diversified monetisation strategies, balancing high‑margin full‑game sales with robust microtransaction ecosystems. Investing in D2C capabilities can yield richer data and stronger brand relationships, while focusing on emerging regions can unlock new revenue streams.

Moreover, the expected slowdown in player‑base growth underscores the importance of community‑building, live‑ops, and content updates to keep existing audiences engaged over the long term. In summary, Newzoo’s outlook paints a picture of a thriving yet increasingly competitive gaming landscape.

With total revenues projected to surpass $213 billion and mobile platforms commanding the lion’s share, the industry’s next few years will be defined by how well developers can adapt to shifting consumer habits, leverage direct‑to‑consumer channels, and deliver compelling experiences that keep players coming back for more.