Gaming industry faces first annual decline in a decade – channelnews

Global consumer spending on video games is expected to fall 4.3 percent in 2022 as a lack of major Christmas releases leads to weaker spending, concerns about inflation and the threat of a recession.

This is evident from estimates by Newzoo BV. This would be the first year-over-year decline since the company began tracking the gaming industry in 2012, meaning it could be the first annual drop in revenue in decades.

Video game spending rose 7.6 percent in 2021 and 25 percent in 2020, when the pandemic first hit.

But a slew of mediocre sales forecasts for the current holiday quarter by the big software companies doesn’t bode well for overall sales in 2022. Ubisoft, Microsoft, and Take-Two all have no major releases this quarter.

Credit: Epic Games

“We recognize that the risk of the global economy slowing continues to increase,” Hiroki Totoki, Sony’s chief of finance, told investors earlier this month as the company cut its full fiscal year revenue forecast for Sony’s video games and network services segment by about 12 percent. . per cent..

Chinese gaming giant Tencent reported its second consecutive revenue decline — the first consecutive decline in the company’s history, while Electronic Arts and Take-Two both lowered their full fiscal year forecasts earlier this month.

“We attribute it to macroeconomic conditions and we want to be realistic about it,” said Take-Two CEO Strauss Zelnick at the time.

Roblox Corp said average bookings per daily user fell 11 percent last quarter, Activision Blizzard saw monthly active users drop 6 percent, while Microsoft’s Xbox content and services revenue fell 3 percent in the September quarter .

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