PC and Console Gaming Expected to Expand Despite AI-Driven Chip Supply Pressure

The worldwide PC and console gaming industry is projected to continue growing in the coming years, according to a new report from Newzoo. The outlook remains positive even as rising demand for advanced memory chips driven by artificial intelligence could increase hardware costs.

The rapid adoption of AI technologies across industries is creating strong demand for high-performance memory components. This growing need for specialized chips may push prices higher, placing additional pressure on gaming hardware manufacturers that are already dealing with tariffs and rising production costs.

Meanwhile, the gaming ecosystem continues to evolve. Valve Corporation, the owner of the Steam digital game marketplace, is reportedly working on a new gaming console designed to support PC titles. At the same time, Microsoft recently revealed plans for a new device connected to its Xbox ecosystem that will support both console and PC gaming experiences.

According to Newzoo’s PC & Console Gaming Report 2026, revenue generated from PC and console software is expected to reach $88.3 billion in 2025 and rise to $94.3 billion in 2026, compared with $82.4 billion in 2024. The report highlights that blockbuster game launches, stronger hardware demand, and increased pricing for premium titles and subscription services are helping boost overall console revenue, even though player growth is relatively modest.

Growth patterns also differ by region. Emerging markets are contributing significantly to the expansion of the PC gaming segment, although the average revenue per user (ARPU) remains lower in those regions. In contrast, established markets continue to drive higher spending on console gaming.

Looking ahead, Newzoo predicts that global PC gaming revenue could surpass console revenue by 2028. This trend is expected to be fueled by player growth in East Asia and the increasing participation of younger audiences, particularly Generation Z and Generation Alpha, which will help strengthen long-term engagement and the overall gaming ecosystem.

Voice Of Osiz

The latest insights from Newzoo highlight the strong resilience and long-term potential of the global gaming industry. Despite rising demand for AI-driven memory chips creating supply pressure, the PC and console gaming ecosystem continues to expand with steady revenue growth. Innovations from major players like Valve Corporation and Microsoft are further strengthening the connection between PC and console gaming experiences. The growing influence of emerging markets and the increasing participation of Gen Z and Gen Alpha gamers are shaping the future of the industry. At Osiz, we believe these trends will accelerate the demand for next-generation gaming platforms, immersive experiences, and scalable game ecosystems. As technology evolves, gaming companies must focus on innovation, performance, and community engagement to remain competitive. This momentum reinforces the long-term growth opportunities across the global gaming landscape.

Source: The Economic Times