Australian spending on video games rose 12% in 2025 to $4.2 billion

Despite tough times for the industry, consumers are spending again thanks to the release of popular new video game titles and consoles.
team cherry hollow knight silksong steam awards 2025

Australian consumer sales for video games rose 12% in 2025, accounting for a spend of over $4.2 billion across the country.

The data was reported in IGEA’s annual consumer sales results, analysing growth and opportunity within Australia and also New Zealand, where video game sales have also risen, by 9%.

This trend is significant, with a sustained growth of 4.8% also predicted between 2025 and 2028, with the IGEA report stating that ‘Australians’ passion for playing video games remains robust across all formats’.

Breaking down the Australian video games sales results

As shared by IGEA, digital video game sales remain the highest performing category overall, although traditional retail sales also saw growth.

Igea Consumer Sales Australia Video Games
Image: IGEA

In 2025, digital video game sales accounted for $1.42 billion of all spending on video games, up 8% year-on-year. The vast majority of this spending – $717.6 million – was on in-game purchases, while $527.9 million was spent on full games.

An additional $178 million was spent on subscriptions, likely including services like PlayStation Plus, Xbox Game Pass, Nintendo Switch Online, and others.

Another significant growth category, as in past years, was mobile games. This category reportedly rose by 12% year-on-year, with IGEA recording $1.71 billion worth of spending. This likely accounts for full game purchases, subscriptions and in-game purchases – although the data is not broken out as it is for other digital games.

Per data analysis firm Newzoo, consumer revenue growth was driven largely by ‘strong performance across the release slate’ with major AAA titles and smaller independent releases contributing to overall sales, including the global hit Hollow Knight: Silksong from Adelaide’s Team Cherry.

Strong traditional retail sales

Perhaps the most surprising statistic revealed in the data is that traditional retail had one of its ‘strongest years on record’ across all tracked categories, with a rise of 18%.

But when you consider that hardware was the bulk of this spending, and that the Nintendo Switch 2 launched in 2025, there’s logic to be found here. With each new console generation, there’s always a resulting uptick in sales.

As shared, hardware sales made up the majority of traditional retail spending, accounting for $676.1 million. That was followed by retail full-game releases at $252 million, and first-party peripherals (or branded accessories) at $164.4 million.

Video games are more popular than ever

What’s most interesting about this year’s statistics is that they reflect a significant uptick in consumer spending from 2024.

In 2025, IGEA reported a 3% downturn in video game sales in Australia, with total sales of $3.8 billion. Now, driven by new hardware releases, and a strong line-up of new games, consumers are spending once more.

As IGEA says, ‘In an environment of challenging economic times, the power of games prevails with Australians turning to games for fun, connection and relaxation, reinforcing the industry’s important role in everyday life.’

There are likely a combination of factors influencing these results, beyond the tangible impact of new and coveted product releases. For one, there are the social and cultural aspects of contemporary life, with today’s pressures perhaps contributing to an increased desire to escape into entertainment media, or to have more fun with friends.

Regardless of the exact reasons, which are not specifically captured in the IGEA data, it appears video games are now more popular than ever in Australia, with 2025 representing a significant leap in overall spending and consumer support for the industry.

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Leah J. Williams is an award-winning entertainment and technology journalist who spends her time falling in love with media of all qualities. One of her favourite films is The Mummy (2017), and one of her favourite games is The Urbz for Nintendo DS. Take this information as you will.