As gamers return to real-world pursuits and cut spending in the wake of economic woes, gaming companies are in trouble.
Console producers, video game publishers and gaming chipmakers are seeing less demand, which has gone against the wisdom that gaming is “recession-proof,” the Financial Times reported Saturday (Aug. 13).
The sector had previously been doing well, seeing more demand during the quarantine period and the early months of the pandemic. But more recently, Sony and Microsoft have posted sales declines, and other companies have followed — gaming chip producer Nvidia has seen lower Q2 revenue due to a weakness in its gaming business.
Meanwhile, Activision Blizzard, which is currently seeing an acquisition from tech giant Microsoft, has seen a 15% drop in sales for the quarter, which happened due to weaker sales for the console and PC market, along with a “poor response” to its newest Call of Duty game.
This has only confirmed the fears of some in the industry, including Strauss Zelnick, CEO of Take-Two Interactive, which makes the popular Grand Theft Auto series. He told investors said he didn’t think the entertainment business was “recession proof or even necessarily recession resistant.”
“If you are feeling the pinch of inflation, specifically with regard to non discretionary expenditures like fuel and food, you could imagine that if you’re playing a game, you might choose to spend a bit less or spend a bit less frequently,” said Zelnick.
That said, gaming has still been a big earner for companies like TikTok owner ByteDance, which generated $1 billion in mobile game player spending in the year to June 20, 2022.
See also: ByteDance Generates $1B in Mobile Game Player Spending in Past Year
That was a 16% boost year over year, according to data analytics company Sensor Tower. The company has also set up a dedicated gaming business, which would go alongside TikTok and its Chinese version Douyin.
ByteDance also bought gaming studios Moonton and C4 last year, which came with several popular overseas games.
——————————
NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings in PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed the responses from 9,904 consumers in Australia, Germany, the U.K. and the U.S. and showed strong demand for a single multifunctional super apps rather than using dozens of individuals ones.
Gaming Slides as Discretionary Spending Shrinks & Latest News Update
Gaming Slides as Discretionary Spending Shrinks & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
Gaming Slides as Discretionary Spending Shrinks & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links