March 17 (Reuters) - Videogame consoles are likely to be

the biggest growth driver in the market until 2027, research

firm Newzoo said on Monday, citing strong expected sales for

Take-Two's upcoming "Grand Theft Auto VI" and the

next-generation Switch from Nintendo ( NTDOF ).

WHY IT'S IMPORTANT

The videogame industry has been recovering at a sluggish

pace following a post-pandemic slump, as concerns over economic

uncertainties and still-high inflation dented consumer spending

on consoles and games.

That led to mass layoffs, studio closures and project

cancellations across the industry in 2024. But analysts expect

the launch of the new Switch console and "GTA VI", likely to be

released in the summer and fall of this year, respectively, to

spur a rebound.

Take-Two Interactive's predecessor to "GTA VI" is

one of the most profitable videogames in the world and has sold

more than 210 million copies as of December 2024. While,

Nintendo ( NTDOF ) last month cut full-year sales forecast for

its older console ahead of its successor's launch.

CONTEXT

Consoles sales last year were softer, as Sony's ( SONY ) PlayStation

5 becomes an aging device and a weaker release slate provided

consumers less incentives to upgrade.

Sony ( SONY ), however, said last month that upcoming titles

would boost the performance of its games division. Its in-house

title "Ghost of Yotei" is also set to launch this year and

follows the success of "Ghost of Tsushima."

BY THE NUMBERS

From 2024 to 2027, console software revenue is expected to

grow 7%, outpacing PC's rise of 2.6%, according to the report.

Console revenue in 2027 is expected to account for more than

56% of the total PC and console software revenue of $92.7

billion.

Total playtime grew 6% last year, with the fourth quarter

seeing the highest quarterly playtime owing to the launch of

Activision Blizzard's new "Call of Duty" title.