COLOGNE—The global games industry is converging at Gamescom 2025 in Cologne this week, eager to unveil potential blockbusters like “GTA VI” that could revitalize the sector. The event kicks off with an opening night showcasing major upcoming releases, with “Black Ops 7,” the latest installment in the “Call of Duty” series, taking center stage.
Trade visitors will have the opportunity to explore the exhibition stands and forge connections before the event opens to tens of thousands of enthusiastic gamers from August 21 to 24. Last year’s Gamescom attracted nearly 335,000 attendees to the Cologne exhibition center, where gaming studios set up expansive displays featuring consoles and PCs for hands-on experiences with the latest games.
Nintendo’s Return and Industry Dynamics
Nintendo is making a comeback in 2025 after skipping last year’s event, buoyed by record-breaking sales of its Switch 2 console. Microsoft’s Xbox division is set to reveal new portable hardware expected later this year, while Sony has opted to sit out this year’s event.
The mood among the approximately 1,500 exhibitors is mixed. Although major publishers have recently returned to profitability, the industry is still grappling with job cuts over the past two years. “The industry is consolidating quite a bit,” remarked Rhys Elliott of Alinea Analytics, reflecting on the post-pandemic era when lockdowns created a captive gaming audience.
Around 30,000 workers have lost their jobs since early 2023, with over 4,000 layoffs occurring this year alone.
Market Stability and Competitive Landscape
Despite the challenges, global games market revenue is expected to remain steady at just under $190 billion this year. While the number of players and hours spent gaming are stable, an ever-growing array of titles are competing for attention. Major players like “Roblox” and “Fortnite” continue to dominate, capturing the interest of hundreds of millions of monthly users.
“Everyone’s fighting for a smaller share of that pie,” noted Mat Piscatella, an expert at Circana. This competitive pressure has prompted Xbox to adapt its strategy by offering its titles on rival consoles. “They’ve had really great success on the PlayStation platform. Sony is making a bunch of money on that too,” Piscatella explained. “It’s a little bit of a win-win all the way around.”
Some PlayStation games are also crossing over to Xbox, with “Helldivers 2” being the first to become available on both Xbox and PC.
Cost of Development and Independent Success
As the costs of developing high-spec “AAA” games soar into the hundreds of millions of dollars, studios face significant financial risks. However, several breakout hits have demonstrated that lower-budget games can still captivate players with compelling gameplay, narrative, and art style. One such success is the French turn-based battler “Clair Obscur: Expedition 33,” which has sold four million copies.
“There’s a realization you don’t need to spend masses of money to deliver a high-quality game that can appeal broadly, and so everyone is rushing towards that model,” said Christopher Dring, founder of The Game Business website. Nevertheless, Piscatella cautioned, “For every ‘Clair Obscur’ success story, there are 10 games that fail to find an audience at all.”
“It’s hyper-competitive for those products outside of that big sphere,” Piscatella added, highlighting the challenges smaller developers face in securing necessary funding.
Looking Ahead: The Anticipation for “GTA VI”
Analysts are predicting that Rockstar Games’ highly anticipated “Grand Theft Auto VI” could achieve the biggest launch for any entertainment product in history. The excitement surrounding this title underscores the industry’s ongoing quest for the next big hit, as developers and publishers navigate a rapidly evolving landscape.
As Gamescom 2025 unfolds, the gaming world watches closely, hopeful that new releases will not only captivate audiences but also drive the industry forward in a time of both challenge and opportunity.
