Video Game Industry Forecast for 2026
This article presents a forecast of significant trends and events anticipated to impact the video game industry in 2026, drawing insights from industry developments in 2025.
Industry Labor and Unionization
Game developers continue to form unions amidst industry trends of consolidation, resource constraints, and workforce reductions. A forthcoming legal dispute between Rockstar Games and approximately 30 unionized former Grand Theft Auto 6 developers is expected to bring discussions about working conditions and company culture into wider public discourse. Grand Theft Auto 6 remains a highly anticipated title.
Saudi Arabia's Proposed Acquisition of EA
The proposed $55 billion acquisition of Electronic Arts (EA) by a Saudi Arabian investment consortium is scheduled to finalize in the first quarter of 2027. This deal is subject to ongoing scrutiny, with some U.S. senators and unions advocating for a federal investigation. The acquisition involves an estimated $20 billion in debt, which could lead to staffing and operational reductions across EA, potentially affecting studios such as BioWare. Discussions are also occurring regarding the potential influence of the Saudi Arabian regime's politics on future EA game content, particularly titles like The Sims. This event highlights Saudi Arabia's strategy to diversify its economy and enhance its international reputation through investments in the video game sector.
Discourse on Mature-Themed Games
Ongoing restrictions by payment processors on "NSFW" (Not Safe For Work), "adult," or sexually themed video games have stimulated increased dialogue within the development and player communities. This has prompted reflection on accepted portrayals of sex in games and the mechanisms by which certain groups may exert influence through financial systems.
Microsoft Gaming and Xbox Outlook
Microsoft reported record profits while simultaneously implementing job cuts, studio closures, and project cancellations within its gaming division. The company is integrating generative AI into its PC operating systems. Microsoft maintains various partnerships, including with the Israeli military. The Xbox business strategy is characterized by a focus on subscription growth and monetizing assets from significant acquisitions. Some developers and players are exploring alternatives to Microsoft Gaming platforms, potentially involving boycotts or shifts to other operating systems like Linux for game distribution.
Russia-Ukraine Conflict's Impact on Gaming
The conflict between Russia and Ukraine has continued for nearly four years. Ukrainian game developers are producing titles that reflect their experiences of the war, either by addressing associated practical challenges or by directly integrating conflict themes into their narratives.
RAM Supply and Generative AI
Increased demand for RAM, driven by generative AI technologies, has resulted in price hikes. One major consumer memory brand ceased operations to prioritize sales to "larger, strategic customers in faster-growing segments." A Kingston representative indicated that high RAM prices are projected to persist into 2026, potentially impacting the costs of other hardware, including Valve's new Steam Machine and the Steam Deck 2.
Generative AI Market Speculation
Significant financial investment has been directed towards generative AI technologies. As of late summer 2025, Nvidia accounted for approximately 8% of the total stock market value. There is ongoing discussion regarding the long-term commercial viability of these technologies and the potential for market volatility, with historical parallels drawn to the early phases of industries like radio and aviation.