Gaming ended 2025 in a paradox: record revenue, louder layoffs and more visible questions about how studios actually scale without burning out teams. This wasn?t a year of a single breakout moment?it was the year the industry proved it could grow bigger while its structure thinned. The stories below are the ones that most clearly defined the shape of the business heading into 2026.
Data note: This recap uses publicly reported figures from industry trackers (such as Newzoo) and studio statements. Numbers may shift as firms publish final reports, so treat them as best-available estimates.
#5: Record Revenue Alongside Layoffs
Newzoo reported global gaming revenue of $197B in 2025, up 7.5% year over year. Mobile led with approximately $108B, PC near $43B and console around $45B. At the same time, layoffs hit over 15,000 developers across the industry, with notable reductions at Microsoft, Epic (reported at roughly 16% of staff) and Ubisoft amid live-service restructuring.
Why it matters: The industry grew even as staff shrank. That tension is now the defining structural question: can growth persist while headcounts decline and what does that do to quality, creativity and development timelines?
#4: Strong Indie Performances
Hades 2 entered early access and sustained strong engagement, with reported averages around 6.6K daily PC players and peaks over 17K. Meanwhile, smaller releases like Sorry We?re Closed and Blue Prince took top positions at the Indie Game Awards after a competitor?s disqualification, while Nintendo?s Donkey Kong Bananza punched above its weight with accessible, retro-leaning design.
Why it matters: 2025 was a reminder that small teams still win attention and engagement when execution is sharp. The ?indie-as-ecosystem? story remains healthy even as AAA budgets balloon.
#3: The Game Awards Viewership Breakout
The Game Awards 2025 reached an estimated 171M global livestream views, up 11% from 2024, with a peak of roughly 4.4M concurrent viewers. Total hours watched reportedly hit 18.8M, a new high.
Why it matters: The show has become a mainstream-scale launchpad for trailers and reveals and its reach now competes with traditional entertainment events. It?s no longer a niche celebration?it?s a distribution engine.
#2: Death Stranding 2 Trailer Momentum
Kojima Productions reignited hype with major Death Stranding 2: On the Beach footage around Summer Game Fest, highlighting returning cast members and a June 26, 2025 release date in reported coverage. The original franchise has crossed 10M+ units sold and the sequel?s trailers kept it in the top tier of 2025 discourse.
Why it matters: The year?s biggest trailers weren?t just marketing?they were event moments that reshaped anticipation cycles and kept the industry?s top IP in the spotlight.
#1: Clair Obscur Awards + the AI Policy Debate
Clair Obscur: Expedition 33 dominated the awards circuit, with reports noting nine category wins at The Game Awards and top recognition at the Indie Game Awards. Two days later, Six One Indie reportedly revoked those Indie awards after a confirmation that generative AI was used for placeholder textures early in development, triggering a zero-tolerance policy.
Why it matters: It exposed the clearest fault line of the year: most major events allow AI-assisted workflows, but smaller awards sometimes enforce stricter rules. That tension is the new policy battleground for 2026.
Key Patterns from 2025
- Scale without staff: Revenue grew while teams shrank.
- Indies stayed competitive: engagement-to-budget ratios tilted in their favor.
- Awards became policy battlegrounds: AI tooling is now an eligibility issue.
- Events became distribution: The Game Awards are now a marketing engine, not just a show.
What to Watch in 2026
- Console acceleration: hardware refresh cycles (including Switch 2 rumors) will determine console growth.
- Studio staffing models: how long can margins improve without creative burn-out?
- AI rules standardization: awards and storefronts will need a consistent position.
The Bottom Line
2025 was the year gaming proved it could be both massive and structurally fragile. Revenue hit new highs, yet creative labor became more precarious. Awards shows became policy forums. Indies remained competitive against blockbuster budgets. The industry enters 2026 bigger than ever?and more contested than ever.
