2024-03-18 13:23:29
Monday, March 18, 2024
٠٨: ٠٢ م +02:00 EET
The Cabinet Information and Decision Support Center said the $200 billion video game industry is facing its biggest slowdown in 30 years, with explosive growth led by smartphone gaming and the latest generation of video game consoles reaching its limits.
Device sales are slowing with Sony reducing its expectations for PlayStation 5 sales, and consumer spending on mobile games in 2023 decreased by 2% to reach $107.3 billion, according to Data.ai, which expects growth. Down single digits in 2024.
Throughout the gaming sector, the crisis contrasts sharply with growth
The center pointed out in a report issued by it entitled “Development Excerpts” that this crisis throughout the gaming sector contrasts sharply with the growth achieved during the Covid-19 pandemic, which allowed many consumers isolated in their homes to spend their excess time and money on games. The report indicated that That peak was the culmination of a series of victories for the digital entertainment business that began with the original PlayStation device in the mid-nineties, and accelerated further with Apple’s iPhone.
Many in the gaming industry expected it to rebound quickly after the decline witnessed in 2022, after the “Covid-19” pandemic, but 2023 did not achieve the growth they had hoped for.
Game developers had to cancel thousands of add-ons
Meanwhile, game developers have been forced to cut thousands of additional jobs this year after already cutting up to 10,000 jobs in 2023. Concern is also widespread that there will be no new gaming consoles being sold to expand the market, and development of the latest generation of PlayStation consoles has dwindled. , and Xbox, which were released in 2020, and the global decline in smartphone sales means that there are fewer new players coming online, which has been the most lucrative part of the industry in recent years.
A significant decline in gaming operating profits at Sony.
The huge discounts on “PlayStation 5” in 2023 have already contributed to the significant decline in gaming operating profits at Sony, and the company does not plan to release any new major games in the fiscal year that begins in April, which deprives it of any support from budget games. Large, bankable projects, such as: God of War Spider-Man.
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