Gaming Hit $195.6B in 2025 While Layoffs Finally Cooled Off

Global video game sales grew 5.3% last year, but private funding cratered another 55%.

Gaming Hit $195.6B in 2025 While Layoffs Finally Cooled Off

The gaming industry posted a solid comeback in 2025. Global video game content sales climbed 5.3% year-over-year to $195.6 billion, according to Matthew Ball's State of Video Gaming 2026 report published via Epyllion.

The layoff bloodbath also eased considerably. Job losses dropped 40% year-over-year to 9,200 people — still painful, but a far cry from the carnage the industry saw previously.

Not everything is rosy, though. Private funding plummeted another 55% last year, signaling that investors remain deeply skeptical about pouring money into gaming ventures. The capital drought continues even as the top line grows.

The takeaway from Ball's report is a gaming market that's selling more than ever but struggling to attract the investment dollars needed to fuel future growth. Revenue up, funding down — a tension that can't last forever.