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As the western games industry struggles, China's games industry is booming, a new report shows
A new report from Niko Partners highlights the booming Chinese video game industry, which generated approximately $51.8 billion in revenue in 2025, significantly outpacing the UK market. This growth is attributed to strong performances from both new and live service games, increasing engagement with esports and mini-games, and the integration of generative AI in development. The report forecasts continued expansion, reaching $59.8 billion by 2030.
Niko Partners: Chinese games market surpasses $50bn for the first time in 2025
China's video game market surpassed $50 billion in 2025 and is projected to reach $59.8 billion by 2030, according to Niko Partners. The growth is attributed to strong performance from new and existing titles, with mini-games being a significant segment. The report also notes the increasing use of AI and methods to bypass internet censorship.
Niko Partners: India games market exceeds $1bn, forecast to reach $1.2bn by end of 2026
India's video game market surpassed $1 billion in revenue in 2025 and is projected to reach $1.77 billion by 2030, according to Niko Partners. The number of players is expected to grow to over 700 million by 2030, with female gamers now comprising nearly half of the player base. Mobile gaming remains the primary revenue driver, though audiences are exploring a wider range of genres on PC and console.
Switch 2 for $499 is a "great deal," analyst says, because "you might end up paying over $800" for the Nintendo console soon enough thanks to rising costs
An analyst from Niko Partners suggests that the upcoming Nintendo Switch 2, priced at $499, is a good deal due to rising hardware costs and potential price increases. The analyst humorously points out that prices could exceed $800 in the future, referencing memory shortages impacting component prices.
"I wish physical media was here to stay": As Sony reports 82% digital PlayStation sales, ex-Blizzard boss says "the purchasing trend from consumers is clear"
Sony reported that 82% of its PlayStation game sales are now digital, a trend former Blizzard president Mike Ybarra finds significant, despite his personal preference for physical media. Industry analyst Daniel Ahmad noted Xbox's digital ratio exceeds 90%, and Capcom anticipates 95% digital sales by next year, highlighting a clear consumer shift away from physical discs.
PlayStation Ending Disc Production is “Extremely Anti-Consumer”, “Truly Ironic”, Say Analysts
Analysts are calling Sony's decision to end PlayStation disc production in January 2028 "extremely anti-consumer" and "truly ironic," predicting it will damage the industry's value and eliminate the $7.2 billion used game market. Despite Sony citing consumer trends, experts like Michael Pachter and Kazunori Ito argue it reduces consumer choice and is a "triumph of corporate convenience over consumer choice."
Two PlayStation Games Sold Over 10,000 Physical Copies in the Week Ending on July 11th – Analyst
Analyst Mat Piscatella noted that only two PlayStation games sold over 10,000 physical copies in the week ending July 11th, with only seven exceeding 100,000 for the year. Despite fan backlash, retailers like GameStop are not opposing Sony's decision to end PlayStation disc production in January 2028, citing a natural shift towards digital media preferences.
GameStop CEO Says Physical Games Media “is Totally, Totally Irrelevant”
GameStop CEO Ryan Cohen stated that physical game media is "totally, totally irrelevant" to the company's business model, shifting focus to trading card games. This comes as Sony Interactive Entertainment plans to end PlayStation disc production in January 2028, a move analysts believe is permanent despite backlash. Experts suggest Sony will not reverse the decision due to the profitability of digital sales.
PlayStation Ending Discs is Like Apple Shipping PCs Without Disc Drives in 2008, Says Analyst
Analyst Daniel Ahmad compares Sony's decision to end PlayStation disc production to Apple's removal of disc drives from PCs in 2008, suggesting the move is a future-facing inevitability driven by the dominance of digital sales. He notes that digital sales now account for around 80% on PlayStation and over 90% on Xbox, with physical media representing only about 5% of Sony's software revenue. Ahmad believes this shift allows Sony to increase margins, strengthen its ecosystem by preventing game resales, and focus on higher-spending core gamers.
Analyst says Sony going all-in on digital is like the death of PC disc drives: 'Not a single person is complaining…
Analyst Daniel Ahmad of Niko Partners compares Sony's decision to stop producing physical game discs by 2028 to Apple removing CD drives from laptops, noting the shift towards digital sales is an inevitable platform-led push. While acknowledging potential consumer rights concerns, Ahmad suggests the trend is driven by the overwhelming majority of digital sales and Sony's increased profitability from its closed digital marketplace.
'If not PS6, then PS7' — Analyst says PlayStation ending physical discs was bound to happen as 'the console ecosystem is nearly entirely digital at this point'
Analyst Daniel Ahmad believes Sony's decision to end physical PlayStation disc production in 2028 was inevitable due to the significant shift towards digital sales, which now account for around 80% on PlayStation and over 90% on Xbox. This move aligns with Sony's strategy to create a high-margin, closed digital ecosystem, controlling all software sales and eliminating the used game market.
PlayStation ending physical games is "like Apple removing the CD Drive from its laptops," says analyst: "Not a single person is complaining about it today"
Analyst Daniel Ahmad compares Sony's move away from physical PlayStation games to Apple's removal of CD drives from laptops, arguing the shift to digital is inevitable. He cites high digital sales percentages and publisher preferences for higher margins, while also discussing the future cost of consoles and the importance of consumer rights in a digital-first market.
Backlash Against PlayStation Ending Physical Discs Won’t Result in Plans Changing, Say Analysts
Analysts believe Sony will not reverse its decision to end PlayStation disc production in January 2028, despite industry backlash. Experts like Serkan Toto and Daniel Ahmad suggest that while Sony may acknowledge the criticism, the financial benefits of digital sales make a reversal unlikely. The move is seen as a natural progression driven by consumer trends and Sony's need to improve profit margins.
Viral indie hit Meccha Chameleon sells a massive 15 million copies in less than a month, becomes the fastest and…
The indie multiplayer game Meccha Chameleon has achieved remarkable success, selling 15 million copies in under a month and becoming the fastest-selling game of the year. Analyst Daniel Ahmad noted the game's strong sales performance, surpassing major titles, and praised the developers for consistent updates and bug fixes.
400 Million Fans: Study Finds How Esports Influences Gen Z and Their Purchasing Behaviours
A new study by ESL FACEIT Group, Hero Esports, and Niko Partners reveals that esports significantly influences Gen Z purchasing behaviors, with 74% reporting that advertising and brand participation in gaming spaces affect their buying decisions. The research, based on 8,000 Gen Z respondents aged 13-30, highlights that 85% notice branding in esports, and 66% have purchased products due to collaborations with esports teams, games, or players. The study also details Gen Z's diverse interests beyond gaming, including music, streaming, and sports, indicating broad opportunities for authentic brand engagement.
Crazy Taxi: World Tour Dev Defends GenAI Use
Kenji Kanno, the original creator of Crazy Taxi, has defended Sega's use of generative AI in the development of Crazy Taxi: World Tour, stating that AI is used only as a reference for artists. The game's publisher, Sega, confirmed that generative AI was used for background assets, with all AI-generated content reviewed by human developers. Industry analyst Daniel Ahmad noted that while genAI use is more accepted in Asian markets, there's little evidence of a negative sales impact for disclosed AI usage in games.
Asia and MENA games market revenue predicted to grow 16.5% to over $103bn by 2030
Niko Partners reports that the Asia and MENA gaming markets generated $88.9 billion in 2025 and are projected to reach $103.6 billion by 2028. India is expected to exceed $1.8 billion in revenue by 2030, while China, Japan, and Korea remain the most mature markets. The report highlights expanding player bases and multi-dimensional growth as key drivers for these regions, contrasting with challenges in North American and European markets.
