‘GTA VI’ isn’t at Gamescom but it’s still dominating the show

The video game industry convened in Cologne for the Gamescom trade show, amid growing concerns about its future due to job cuts, fierce competition, and the decline of physical discs. The latest entry in the immensely popular Grand Theft Auto series, GTA VI, will not be showcased at the event, but developers are under pressure to make their games stand out from the crowd. To avoid clashing with the highly anticipated GTA VI release on November 19, several studios have pushed back their release dates.

The massive Grand Theft Auto VI is expected to smash records when it hits shelves, causing rival publishers to worry about their own upcoming releases. In light of GTA VI's success, some games may struggle to compete during a crowded release window, according to Rhys Elliot of Alinea Analytics, a consulting firm specializing in the gaming industry.

One of the key topics at the trade show will be Sony's decision to discontinue physical game discs by 2028, a move that has sparked debate. While disc-based games were once a staple of the industry, digital sales now account for nearly 82% of sales for the PS4 and PS5. This shift has raised concerns about the long-term impact on the second-hand market and the loss of physical gaming memorabilia.

Microsoft's recent U-turn to make its Xbox exclusives available only on its own platform, marking a shift from its previous strategy of releasing major titles on multiple platforms, is seen as an attempt to boost Xbox brand loyalty. However, Microsoft has faced its own challenges, with revenue at its Xbox division falling seven percent in 2022 and the company announcing job cuts in its gaming division earlier this year.

The gaming landscape has been reshaped by recent industry upheavals. Several US-based studios, including video game giant Epic Games, which developed the popular Fortnite, have laid off thousands of employees. Sony's US-based studio, Bungie, which created the Marathon series, also announced job cuts in June. In France, major studios like Ubisoft and Nacon are struggling, with nearly 10,000 job losses recorded across the industry, bringing the total potential job cuts for 2025 to around 15,000, close to the record set in 2024.

Despite the challenges, the global video game market continued to grow, reaching nearly $200 billion in 2025, with a handful of hit games like Roblox and Fortnite dominating players' attention.