The global gaming industry has descended upon Cologne for the highly anticipated Gamescom 2025, hoping that upcoming blockbusters like “GTA VI” will rejuvenate an industry currently facing significant challenges. The event, which runs from August 21 to 24, promises to showcase major releases, with “Black Ops 7” from the “Call of Duty” series taking center stage during the opening night.
Trade visitors have the opportunity to explore the exhibition before the event opens to tens of thousands of eager gamers. Last year, Gamescom attracted nearly 335,000 attendees, transforming the Cologne exhibition center into a bustling hub where studios offer hands-on experiences with their latest releases.
Nintendo’s Return and Industry Dynamics
This year marks the return of Nintendo, riding high on the record-breaking launch of its Switch 2 console, after skipping the event last year. Meanwhile, Microsoft’s Xbox division is set to unveil new portable hardware expected later this year. In contrast, Sony has decided to sit this one out, opting not to participate in the 2025 edition.
The mood among the approximately 1,500 exhibitors is mixed. While major publishers have recently returned to profitability, the industry is still grappling with the aftermath of job cuts over the past two years. According to Rhys Elliott of Alinea Analytics, “The industry is consolidating quite a bit” following the boom years driven by COVID-19 lockdowns.
Economic Pressures and Market Trends
Since early 2023, around 30,000 workers have lost their jobs, with over 4,000 layoffs occurring this year alone. Despite these challenges, the global games market is expected to maintain steady revenue, just under $190 billion. The number of players and hours spent gaming remains stable, but the sheer volume of available titles means fierce competition for attention.
“Everyone’s fighting for a smaller share of that pie,” said Circana expert Mat Piscatella, highlighting the dominance of games like “Roblox” and “Fortnite,” which captivate hundreds of millions of monthly users.
Strategic Shifts and New Opportunities
In response to these pressures, Xbox has adopted a new strategy, increasingly offering its titles on competing consoles. “They’ve had really great success on the PlayStation platform. Sony is making a bunch of money on that too,” Piscatella noted. “It’s a little bit of a win-win all the way around.” This cross-platform strategy is mirrored by some PlayStation games, such as “Helldivers 2,” which are now available on Xbox and PC.
The high costs associated with developing AAA games, which can run into hundreds of millions of dollars, have prompted studios to seek new ways to shore up sales. However, several lower-budget games have demonstrated that success does not always require massive financial investment. French turn-based battler “Clair Obscur: Expedition 33,” which sold four million copies, exemplifies this trend.
“There’s a realization you don’t need to spend masses of money to deliver a high-quality game that can appeal broadly,” said Christopher Dring, founder of The Game Business.
The Challenges for Smaller Developers
Despite these success stories, the reality remains harsh for many smaller developers. “For every ‘Clair Obscur’ success story, there are 10 games that fail to find an audience at all,” Piscatella pointed out. The competition is particularly intense for products outside the major franchises, and smaller developers must work tirelessly to secure the funding they need.
Looking Ahead: The Promise of “GTA VI”
The industry is eagerly anticipating the release of Rockstar Games’ “Grand Theft Auto VI,” which analysts predict could achieve the biggest launch for any entertainment product in history. This potential blockbuster represents a beacon of hope for an industry seeking to navigate a complex landscape of economic pressures and evolving consumer preferences.
As Gamescom 2025 unfolds, the gaming world watches closely, hoping that the innovations and strategies unveiled in Cologne will pave the way for a new era of success and creativity in the industry.
