2025 in Review: The Most Significant Games Industry News Stories

Join us as we revisit the major games industry news stories of 2025, including substantial takeover deals, closures of historic studios, significant hardware launches, and intense debates surrounding tariffs and AI. The year began with Sony's cancellation of two unannounced live-service titles from Bend Studio and Bluepoint Games, marking a shift away from the live-service strategy. Phil Spencer, Microsoft's gaming CEO, discussed plans to make Xbox first-party titles available across other platforms, highlighting the company's commitment to accessibility. The year also saw the launch of Nintendo's Switch 2, which achieved impressive sales figures despite initial concerns over the lack of indie games and the use of Game-Key Cards. Other notable developments included the closure of Warner Bros. Games San Diego, Player First Games, and Monolith Productions, as well as significant layoffs across the industry. The US tariffs on goods from dozens of countries led to a surge in speculation about the impact on the games industry, with companies like Sony and Nintendo reassessing their manufacturing and pricing strategies. The year also witnessed key advancements in AI, including the use of generative AI in game development and the debate surrounding AI-generated content. Other major stories included the Savvy Games Group's acquisition of Niantic's game business, the launch of Peak and other breakout indie games on Steam, and the public falling out between Krafton and the former leadership team of Subnautica studio Unknown Worlds. The games industry also saw significant legal battles, including Sony's lawsuit against Tencent over the alleged cloning of its Horizon series. Microsoft initiated a major round of job cuts, affecting around 4% of its workforce, and the year saw over 9,000 layoffs across the industry. The US actors' union SAG-AFTRA voted to end its 11-month strike, reaching a pay agreement and ensuring 'safety guardrails and gains around AI.' The UK's Online Safety Act came into force, requiring companies to implement effective age verification measures, and a pressure group campaign led to a crackdown on adult games on Steam and Itch. The year also saw the ratification of Activision studio Raven Software's first union contract with Microsoft, guaranteeing a 10% wage increase and seeking to eliminate crunch. The ZA/UM Workers' Alliance became the first recognized workers union in the UK games industry, marking a significant milestone for labor rights. The release of Hollow Knight: Silksong crashed global stores, selling over 7 million copies in three months, and the Game Developers Conference announced a rebrand as GDC Festival of Gaming. The year ended with significant developments, including the announcement of EA's acquisition by a group of investors, the disruption of Amazon Web Services, and the delay of GTA 6. The games industry also witnessed the rise of unionization efforts, with the Independent Workers' Union of Great Britain accusing Rockstar Games of union busting. The year concluded with Valve's announcement of three new devices, including the Steam Frame VR headset, a new Steam controller, and the console-like Steam Machine, which is set to be released in early 2026 with competitive pricing. Overall, 2025 was a year of significant change and development in the games industry, marked by major acquisitions, technological advancements, and intense debates surrounding AI, labor rights, and industry trends.