Today we take a look at the market for gaming consoles and handhelds. We're digging into our latest forecast update, which revises the next major console cycle—driven by the 2025 Switch 2 launch and a 2028 peak—and delivers a reality check for the cooling PC handheld segment.

Our latest gaming market forecast update confirms the industry's deeply cyclical nature, with the 2025 launch of the Switch 2 kicking off the next major upgrade wave. This cycle, expected to peak in 2028 following new PlayStation and Xbox consoles, looks more cautious as short-term consumer confidence in the sector has dropped.

The gaming console market is defined by predictable, high-volume cycles, and the next one is beginning. The launch of the Switch 2 in 2025 is the first major driver, setting the stage for a new wave of component demand.

Following that, our assumed launch window for the next-generation consoles from both Sony (PlayStation) and Microsoft (Xbox) is late 2027. This will drive the market to a new volume peak in 2028. Looking further out, our long-range forecast models the subsequent growth cycle beginning between 2033 and 2035.

The PC handheld segment, which saw initial enthusiasm from devices like Valve's Steam Deck and the ASUS ROG Ally, is facing a significant market correction. Our updated forecast sharply decreases future growth rates for this category.

While the segment is crowded with vendors (including ASUS, Valve, AYANEO, Logitech, and others), it is struggling to move from a passionate niche to a mass-market category. Recent device launches have been met with mixed reviews, often citing software "quirks" and high price points for iterative performance gains. This aligns with broader market sentiment, which has seen one of the most notable drops in short-term confidence for gaming. Respondents cite weakening consumer demand and rising economic constraints as key concerns, making new, high-priced models a difficult sell for mainstream consumers.

To reflect these market dynamics, several key forecasts in the DATAportl database have been updated:

For semiconductor professionals, this update underscores a "back to basics" strategy for the gaming market. The reliable, high-volume console cycles—driven by Nintendo, Sony, and Microsoft—remain the primary planning targets for advanced SoCs, high-bandwidth memory, and power management. The critical window begins with the Switch 2 in 2025 and builds toward the next-gen console launches in late 2027, driving a market peak in 2028. In contrast, the PC handheld market is proving to be a smaller, more fragmented, and price-sensitive opportunity than anticipated, driven more by enthusiast spending than by a mass-market upgrade.

If you’re a client, you can view a comprehensive coverage of the market below:

As always, these latest forecast updates are now live in the DATAportl database for all subscribers.