Sales in the video game market are down for the first time in years, and the industry, which thrived in the era of the epidemic, now faces a grim future due to the recession. According to research data from Ampere Analysis, the global games and services market will shrink 1.2% year on year to $188 billion this year.
The industry grew by 26% overall from 2019 to 2021, with the market reaching a record $191 billion. Ampere data shows that video game sales have been growing since 2015, and Microsoft and Sony, which are aggressively launching next-generation consoles, have also boosted consumer demand in the gaming market during the epidemic embargo.
However, the Russian-Ukrainian war, supply chain bottlenecks and inflationary issues have further worsened the outlook for the gaming industry, and supply disruptions have led to shortages of key components that also pose a risk of undersupply for new consoles on shelves. In addition, numerous gaming software and hardware manufacturers, including Microsoft and Sony, have decided to suspend their operations in Russia. Russia was the world’s 10th largest gaming market in 2021, but the country is expected to fall to 14th place globally this year, with the market expected to lose $1.2 billion.
Ampere research director Piers Harding Rolls said the gaming industry is not recession-proof and soaring prices could further pressure consumers, with the market expected to see a slowdown in growth in 2022. Harding Rolls said that even so, the outlook for the industry as a whole remains positive, with the market expected to return to growth in 2023 growth, sales are expected to rebound to $195 billion.