The gaming industry is facing a challenging period marked by widespread layoffs and frequent studio closures. As development costs and timelines continue to soar, competition within the market has become fiercer than ever. Despite advancements in technology, the persistent issue of crunch culture leaves many developers both overworked and underpaid. With video games becoming increasingly expensive and risky investments, the industry’s future feels uncertain, raising concerns about the sustainability of the medium.
In the report State of Video Gaming in 2025, veteran investment analyst and researcher Matthew Ball from Epyllion examines key industry trends shaping the gaming landscape. The analysis covers diverse topics, including the performance of the mobile gaming market, the rising significance of emerging markets like China, and the evolving state of AR/VR gaming. In the final section, titled How Player, Playertime, and Player Spend Might Return to Growth, Ball explores various potential “growth engines” that could drive the industry’s future expansion.
Grand Theft Auto 6 ( GTA 6 ) Could Be Pivotal For The Industry
The gaming industry is buzzing with exciting developments, from the anticipated release of the Nintendo Switch 2 and the rise of AI in games to emerging genres and expanding into “non-core” markets. However, one topic stands out: the pricing of Grand Theft Auto 6 (GTA 6). The game is poised to dominate the market upon launch, with players worldwide expected to drop everything else for months. Other studios will likely steer clear of its release window, given its massive cultural impact and mainstream appeal.
What’s generating the most intrigue, however, is the potential price tag. Reports suggest Take-Two might price Grand Theft Auto 6 ( GTA 6 ) at $80—or even $100—breaking the long-standing $70 barrier for premium games. If any title can justify such a move, it’s Grand Theft Auto 6 ( GTA 6 ), often referred to as the gaming event of the decade. A price hike like this could set a precedent, encouraging other studios to follow suit.
That said, this prospect has sparked mixed reactions among players. While higher prices could benefit the industry by reflecting the growing costs of game development, many gamers, especially those outside the U.S., already feel the pinch due to unfavorable exchange rates. For them, a $100 game might translate into a significantly higher local cost, making this potential shift hard to swallow.
The reality is that, for video game development to remain sustainable, price increases are unavoidable. The current revenue model is insufficient to support the industry’s long-term viability. Gaming studios often operate on precarious financial footing, where a single failed title can threaten their survival. To ensure job security for workers and protect studios from catastrophic losses, the economics of making video games must become more stable and feasible.
Note
Video games started going up in price around the pandemic, and $70 has gradually become the norm for triple-A titles.
While Take-Two is poised to profit significantly, the bigger takeaway is the precedent this sets for other developers and publishers. Studios creating games of a similar scale, but without the certainty of success that Take-Two enjoys, may feel justified in adjusting their pricing accordingly. It’s essential to recognize that video games are a luxury product, not a necessity, and the rising costs of development naturally drive up prices. Economics makes this inevitable. However, once higher pricing becomes the standard, it’s unlikely to be reversed, no matter how much consumers voice their dissatisfaction.
Video Credit: The Gamer
But What About The Rest Of The Industry?
The gaming industry is a vast and diverse ecosystem, far beyond just the triple-A blockbusters. It includes double-A studios and indie developers, who often bring unique creativity and innovation to the table. However, if game prices continue to rise, these smaller players may bear the brunt of the fallout.
This economic pressure comes at a time when many people are already grappling with the challenges of late-stage capitalism. Across the globe, the cost of living is climbing steadily while wages remain stagnant. With limited disposable income, people must prioritize essentials like rent, groceries, and other necessities—leaving less room in their budgets for leisure activities like gaming. For many, the prospect of homeownership feels increasingly out of reach, underscoring the financial strain that shapes everyday life.
GTA 6 is poised to dominate the gaming industry, potentially leaving little room for other titles to thrive. With its massive appeal, the game might redirect funds that players would otherwise spend on a variety of games, further disadvantaging smaller and independent studios. This consolidation of attention and resources isn’t new in the gaming world, but GTA 6 could exacerbate the issue, pushing the industry closer to a breaking point.
The broader challenge lies in the increasing costs of game development. While it’s easy to point fingers at corporate executives, whose pay raises often coincide with mass layoffs, there are deeper systemic problems at work. Rising production expenses affect both big publishers and indie developers, creating a financial strain across the board. If the gaming industry is to avoid further decline, consumers may need to contribute more to sustain it. It’s a grim reality, but a stark reminder of the pressures capitalism places on creative industries.