Pixel P&L: Global Games Market Hits $197 Billion in 2025 as PC, Mobile Exceed Forecasts

Welcome to another Pixel P&L edition. This issue takes 6 minutes to read. If you only have one, here are the 5 most important things:

• The global games market will hit $197 billion in 2025, with PC surging 10.4% and mobile leading at $108 billion.

• Riot Games is planning its biggest-ever League of Legends overhaul as player numbers decline .

• Kingdom Come Deliverance’s game director Daniel Vávra calls industry resistance to AI use futile.

• Sony and Tencent settled their Horizon copyright dispute with confidential terms.

• Controversial game Horses sold 18,000 copies despite Steam and Epic bans, but the developer warns of closure.

Let's get into it.

Global Games Market to Hit $197 Billion in 2025, Driven by PC and Mobile Growth

The global games market will reach $197 billion in 2025, up 7.5% from prior forecasts, as PC and mobile platforms exceed expectations, according to Newzoo.

PC revenue is projected to surge 10.4% year-over-year to $43 billion, driven by strong premium releases outperforming 2024 titles. Mobile gaming will generate $108 billion, up 7.7%, marking its second consecutive year of growth. Console revenue grew 4.2% to $45 billion, lagging behind other platforms despite major releases.

Battlefield 6 topped PC revenue charts while EA Sports FC 26 and NBA 2K26 dominated console charts, with Electronic Arts securing four top-ten positions benefiting from predictable sports game release cycles..

Sandfall Interactive's Clair Obscur: Expedition 33 emerged as a breakout success after sweeping The Game Awards, becoming Xbox Game Pass's top third-party 2025 release with 5.13 million lifetime users.

Riot Games Plans Major League of Legends Overhaul as Player Base Declines

Riot Games is developing its biggest-ever update to League of Legends, targeting a 2027 release as the company grapples with a shrinking player base for its flagship title.

The overhaul, internally dubbed League Next, will redesign the game's visual aesthetic, user interface and battle arenas to attract new players, according to five current and former employees who spoke to Bloomberg. Developers are rebuilding technical infrastructure to accelerate future updates and recently introduced simplified keyboard controls for newcomers.

The update follows a difficult period for the Tencent Holdings-owned studio. While League of Legends maintains over 100 million monthly players since its 2009 launch, its audience has declined, said the people familiar with the matter. Riot's newer title Valorant now generates more revenue.

Last year, Riot cut 530 jobs after costly diversification efforts, including a $250 million Netflix series, Arcane. CEO Dylan Jadeja acknowledged the company had overextended its focus.

League of Legends remains free-to-play, with Riot monetizing through digital accessories sales.

⚡️Quick Bytes

Kingdom Come Developer Defends AI Use After Larian Backlash

Warhorse Studios co-founder Daniel Vávra defended Larian's generative AI use for concept work, calling industry resistance futile. Vávra said AI could reduce development time and costs for routine tasks while preserving creative roles, comparing opposition to 19th-century resistance against steam engines. He acknowledged AI poses existential questions but said adoption is inevitable.

Naughty Dog Mandated Overtime for Intergalactic Demo, Report Says

Naughty Dog required employees to work mandatory overtime for seven weeks to complete the Intergalactic: The Heretic Prophet demo, Bloomberg reported. Staff worked minimum eight extra hours weekly, capped at 60 hours total, and switched from three to five office days, disrupting childcare routines. The overtime period ended this week after several missed deadlines..

Controversial Game Horses Sells 18,000 Copies Despite Platform Bans

Santa Ragione's horror game Horses generated $65,000 despite Steam and Epic Games Store refusing distribution, but the Italian developer says revenue barely covers debts from prolonged development. The studio warned it may close as team members seek other work. Santa Ragione called for transparent platform policies, noting many games face quiet bans without recourse while developers fear retaliation for speaking publicly.

Sony and Tencent Settle Horizon Copyright Dispute

Sony and Tencent settled their legal battle over alleged similarities between Horizon and Light of Motiram, with confidential terms and the case dismissed with prejudice. Sony sued in July 2025, calling Light of Motiram a "slavish clone" after Tencent's rejected Horizon pitch. Tencent accused Sony of monopolizing genre conventions. Light of Motiram remains delisted from Steam and Epic Games Store.

⚔️Side Quest

🤣Laugh:

📺 Watch: Tom Hall, legendary designer of Commander Keen and Doom, reveals gaming's therapeutic power beyond entertainment. He shares how games helped him process childhood trauma, rehabilitate after a 2010 stroke (using Zenbound 2 for motor control recovery), and combat cognitive decline in elderly family members. Essential viewing on how interactive media heals mind, body, and spirit through engagement traditional therapy cannot match.

🎮 Play: MARVEL Cosmic Invasion delivers one of the decade's best side-scrolling brawlers, spotlighting underrated heroes with deep combo systems and seamless character-switching that surpasses Shredder's Revenge. Perfect for families and beat 'em up enthusiasts with high skill ceilings and engaging co-op. The campaign is shorter than genre-standard length but commands a premium pricing, so Marvel fans should grab it while casual players might want to wait for sales.

📚 Read: Ogre Run examines how Clair Obscur: Expedition 33's success revives decades-old anxieties about Japanese game development, tracing discourse from Final Fantasy VII's breakthrough through the genre's perceived 2000s decline. The essay argues that photorealism via Unreal Engine 5 grants Western-developed JRPGs legitimacy denied to anime-styled Japanese titles, perpetuating selective historical narratives that erase the genre's actual diversity.

💡Did You Know

A 92-year-old Japanese woman, Hisako Sakai, has become one of the oldest esports tournament winners ever after claiming victory at a Tekken 8 competition for senior citizens. Organized by the Care Esports Association, the event featured competitors aged 70-90s. Sakai dominated using Claudio Serafino, defeating 95-year-old favorite Sadayuki Kato in the semifinals before beating Goro Sugiyama in the final. The association promotes competitive gaming as health-promoting activity, helping seniors "live bright, healthy, and active lives" while creating accessible esports environments for elderly participants across Japan.

📜 Quote of the Day

Was this forwarded to you? Sign up for free here. 

We read every email! Share your feedback by hitting reply.