The PC gaming hardware market is about to have a record-breaking year. Global sales of gaming desktops, laptops, and accessories are projected to jump 35% in 2025, reaching a massive $44.5 billion. That’s according to a recent report from Jon Peddie Research via Wccftech. But it’s not because more gamers decided to switch from consoles to PC. Rather, it’s all ‘thanks’ to the gaming industry’s massive push toward Windows 11 and demanding engines such as Unreal Engine 5.
“Never before in the history of the Microsoft Windows operating system has there been a forced hardware migration requirement,” noted Jon Peddie Research analyst Ted Pollak.
After all, Microsoft has repeatedly promoted its new OS and said that Windows 10 support will be dropped this October. But this isn’t just a simple software update for most people. Windows 11’s security mandates mean new CPUs, which leads to new motherboards, and ultimately, new RAMs. That means your perfectly fine, beefy Kaby Lake PC is about to be treated like a second-class citizen once Windows 11 launches.
Epic’s insistence on promoting Unreal Engine 5 to developers and hardware makers doesn’t help either. It’s great that developers get shiny new tools like Lumen and Nanite, but it’s the players who end up having to pay the hardware tax. Various outlets report that games built on Unreal Engine 5, like Borderlands 4 and MGS Delta, eat through VRAM like a raccoon in a dumpster. You can say bye-bye to RTX 2080, RX 7600, and their equivalent if you want to keep up.
Adding to the pressure are the ongoing tariff battles. Tom’s Hardware reports that PC builds are already up at least 15-20% in price, with GPUs, cases, and other components all facing higher import costs. Trade tensions could easily push prices even higher, leaving gamers with tough choices: paying more now or delaying buying upgrades and new games.
With this, Jon Peddie Research president Dr. Jon Peddie forecast a decline of the PC gamer population by around 13% over the next five years. That’s more than 10 million gamers shying away from Steam, Epic Games Store, GOG, and other PC storefronts.
“Consoles, handhelds, and mobile all offer compelling value for the budget-limited gamer,” said Peddie. And that’s already considering PlayStation 5 and Xbox models’ price hike, to $749.99 and $649.99, respectively.
Still, that loss might be offset by more spending on higher-priced midrange builds. “However, a few million entry-level defectors are not actually leaving the PC platform but are migrating to the more expensive hardware tiers of midrange and high-end PC hardware.”
2025 looks like a landmark year for the industry with a surge in hardware purchases and upgrades that will keep PC gaming at the forefront. Nonetheless, this growth might not entirely be by choice, as gamers are likely just trying to meet Windows 11 and engine requirements for their favorite games.
