The video games sector has experienced a transformative year with major hardware launches and acquisitions, setting the stage for an uncertain 2026. Key developments include strong sales for Nintendo's Switch 2 and a proposed massive buyout of Electronic Arts, while delays in high-profile titles like Grand Theft Auto 6 loom large. Analysts highlight shifting strategies in console markets as the industry evolves.
The video games industry marked 2025 as a year of significant shifts, with implications extending into 2026. Nintendo's Switch 2 emerged as a standout success, becoming the fastest-selling console in the company's history by moving 10.36 million units in its first four months after a summer launch. This performance underscores Nintendo's commitment to exclusive titles, including an open-world reimagining of Mario Kart and a new Donkey Kong game, even as demand challenges persist.
In a bold move toward consolidation, a consortium backed by Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners, and Silver Lake announced plans to acquire Electronic Arts in a $55 billion deal, incorporating $20 billion in debt financing. This would mark the largest leveraged buyout in Wall Street history. Omdia analysts, including senior games analyst George Jijiashvili, noted potential impacts on EA's operations, questioning whether the fund aims for a public relations effort in East Asia or to maximize financial returns.
Challenges abound for other players. Ubisoft faced setbacks with a second delay for Assassin's Creed Shadows, now slated for 2025, contributing to a more than 50 percent drop in its shares since the year's start and over 90 percent below 2021 peaks. Despite a brief uptick from partnering with Tencent on Vantage Studio to develop core IPs like Far Cry, Assassin's Creed, and Tom Clancy's Rainbow Six, recovery remains elusive.
Take-Two Interactive, buoyed by anticipation for Grand Theft Auto 6, saw rising shares through 2025. Twelve years after GTA 5's release, the sequel faced speculation of delays, with CEO Strauss Zelnick expressing high confidence in an initial schedule during a May CNBC interview. However, it was postponed to November 19, 2026, amid news of a stake in the company. Zelnick emphasized the enduring relevance of consoles, stating, “But if you define a console as a feature, not a system, the idea of a very rich game that you engage with for hours, played on a large screen, is never going away.”
Console strategies are adapting to a more open market. Microsoft has reduced exclusives, porting games like Indiana Jones and Forza Horizon to PlayStation 5, while Sony expands PC releases. Jijiashvili affirmed consoles' role in premium gaming, with Omdia data showing they account for 23 percent of consumer spending, behind mobile's 60 percent and ahead of PC's 16 percent. Christopher Dring of The Game Business highlighted Nintendo's unique reliance on its own titles, warning of supply gaps without third-party support.
As 2026 approaches, these dynamics suggest a industry balancing innovation, financial pressures, and evolving hardware paradigms.
