Video games industry 'will return to form' in 2025 says gaming expert

The video games industry had a really tough 2024 but an expert believes 2025 is the year it will "return to form" - although he does warn there is still one "big question" companies need to answer.

A number of gaming companies, including some of the very biggest of all like Microsoft's gaming division, Unity and Ubisoft, were forced to make cuts to their workforce last year and several were forced to shut for good.

It was a fairly quiet year in terms of big game releases too but expert George Osborn thinks 2025 will see an upturn in the industry's fortunes, even if there will be some key challenges along the way.

Osborn is the creator of Video Games Industry Memoand the managing director of Half-Space Consulting with 15 years' experience in the industry, having also studied at the University of Cambridge.

Speaking to indy100, he said: "I think we will see the video games industry return to form a little bit.

"2024 was a really difficult year for the sector, there were significant layoffs, studio closures, there also weren't too many major releases.

"You could even see that at The Game Awards among the brilliant games that were nominated for Best Game, as something like Balatro, which is a great one-person indie game, was in the running along with the Elden Ring: Shadow of the Erdtree DLC.

"I think that showed it was a year light on releases whereas 2025 looks like it's going to have a very strong lineup."

George Osborn said as well as GTA 6, games such as Borderlands 4 (pictured) and Mafia: The Old Country mean there are a lot of top games for people to play and enjoy through 2025 Image from 2K

While Osborn is more optimistic about 2025, he did say there is one big question gaming companies will still need to answer and plan accordingly.

"Everyone is already talking about GTA 6 but when you've also got things like Borderlands 4, Sid Meier Civilization VII, even a new Mafia game, there's plenty for people to talk about across the year and plenty for people to be buying and enjoying," he said.

"I think the industry will kick back up but I think there's still a bit of a question about how much the industry's historic business models will hold up to scrutiny this year.

"Last year, one of the biggest facts and figures that was doing the rounds in the industry is that five video games more than six years old took up 25 per cent of total playtime on console and PC with things like Fortnite and Roblox top of the list.

"I still think there's going to be that question: is the most valuable thing in video games in terms of the market no longer the amount of money someone has but the amount of time?

"I think that's the big question that's going to be resolving itself across 2025. It's still going to an interesting period of adjustment."

Osborn's Video Games Industry Memo is sent out every Thursday and he's writing his debut non-fiction book called Power Play, a look at how video games are changing the world.

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