Console and PC Gaming Revenue Soars as Mobile Growth Stalls
A comprehensive industry analysis by Sensor Tower highlights a significant shift in the gaming landscape, with console and PC platforms experiencing robust growth while mobile gaming enters a period of stagnation. In 2025, revenue from PC and console gaming increased by an impressive 13%, driven by viral indie hits, high-quality AA experiences, and reliable AAA titles. In stark contrast, mobile gaming revenue saw a mere 1% growth, indicating a mature phase where focus shifts to player retention and monetization rather than attracting new users.
Microsoft's Advertising Blitz Falls Short Amid Leadership Overhaul
Microsoft emerged as the top spender on advertising in the gaming sector, investing nearly $160 million (approximately £118 million) in promotional campaigns for Xbox titles. Despite this substantial outlay, the company's first-party releases in the last quarter of 2025 failed to meet financial expectations, with gaming revenue continuing to decline year-over-year. Sensor Tower's data shows that few of Microsoft's new games ranked among the most downloaded titles, with Doom: The Dark Ages being the sole wholly new release to achieve around five million downloads, placing it on the lower end of top performers.
The confusion in Xbox's messaging, including campaigns like 'This is an Xbox' that reportedly faced internal criticism, has compounded these challenges. With new leadership under Asha Sharma, Microsoft is seeking a strategic refresh, though uncertainties remain as Sharma noted, 'the plan's the plan until it's not the plan.'
EA Achieves Top Publisher Status with Efficient Marketing
Electronic Arts (EA) demonstrated that effective publishing does not require exorbitant advertising budgets. Spending under $80 million (about £59 million), EA secured the position of top publisher on console and PC in 2025, largely due to the success of Battlefield 6 and its consistent sports franchises. This achievement underscores the importance of game quality and brand loyalty over mere promotional expenditure.
Mobile Dominance in Downloads but Not in Revenue Growth
When considering download numbers, Embracer Group led the market with 498.4 million downloads, predominantly from mobile games, compared to 22.7 million on console and PC. However, this volume did not translate into significant revenue growth, reinforcing the report's conclusion that mobile gaming is prioritizing monetization of existing players. Notably, Tencent would rank first if data from its mobile subsidiaries Supercell and Miniclip were included, highlighting the fragmented nature of mobile gaming analytics.
Industry Trends and Future Challenges
The report suggests a growing preference for traditional gaming platforms, with Chinese developers like those behind Black Myth: Wukong turning to console gaming. Yet, executives remain concerned as growth in traditional gaming lags behind other interactive entertainment sectors, such as gambling and AI chatbots. Additionally, rising hardware costs due to the ongoing memory crisis pose barriers to entry for new players, potentially limiting further expansion.
In summary, the gaming industry is at a crossroads, with console and PC gaming showing resilience and growth, while mobile gaming faces saturation. The experiences of Microsoft and EA illustrate that strategic clarity and game quality are more critical than advertising spend in achieving success.
