State of Play: Who Holds the Power in the Video Games Industry in 2025
In 2025, the video games industry has seen significant consolidation and disruption. Saudi Arabia's Public Investment Fund made headlines with major deals, including a $55 billion bid to acquire Electronic Arts and the March purchase of Niantic, underscoring a trend of state-backed consolidation through Savvy Games Group. This follows in the footsteps of Microsoft's 2023 acquisition of Activision, which set a precedent for concentrated economic power within the industry.
The sector also faced substantial job losses, with over 5,000 games-industry positions cut in 2025. Notable studios affected include Monolith Productions. Alongside economic shifts, widespread AI disruption has taken hold. Companies are striving to justify heavy investments in AI tools, incorporating AI-generated artwork and voiceovers into top game titles, though this has prompted resistance from workers.
Labor unions have become more visible and influential. The United Videogame Workers union was formed in the US and Canada under the Communications Workers of America (CWA). In the UK, the IWGB Game Workers Union drew attention following the firing of 30 staff members at Rockstar.
Despite these challenges, successes continue in the indie and mid-budget game segments. Titles such as Clair Obscur: Expedition 33 and Hollow Knight: Silksong have thrived, with Silksong achieving sales of seven million copies.
Hardware developments also marked 2025, with the announcement and release of the Nintendo Switch 2. The device was generally well received by consumers, although its launch was somewhat overshadowed by tariff-related controversies involving former US President Donald Trump.
