Video game sales are set to fall annually for the first time in years as the industry that thrived during the coronavirus era faces the grim possibility of a recession.
According to market research firm Ampere Analysis, the global games and services industry is expected to shrink 1.2% year-over-year to $188 billion in 2022. CNBC reported.
From 2019 to 2021, the sector grew by 26%, reaching a staggering $191 billion. Data from Ampère shows that video game sales have been growing steadily since 2015.
The COVID-19 closures in 2020 have given the game a huge boost as people have spent more time indoors. The release of next-generation consoles from Microsoft and Sony in the same year boosted the fortunes of the industry, according to CNBC’s report.
However, the advent of Microsoft’s Xbox Series X, S machines, and Sony’s PlayStation 5 proved to be a double-edged sword. Due to logistical issues and shortages of critical components during the COVID-19 pandemic, the level of difficulty has increased for customers to find any of the new consoles in stores or online.
COVID-19 shutdowns prevented customers from physically purchasing products from stores or they were also unavailable for delivery. Due to the pandemic, offline stores were also closed, which became the main reason for the drop in sales.
According to Ampere, Russia was the world’s tenth-largest gaming market in 2021. However, the company predicts it will fall to 14th in the global rankings this year, losing $1.2 billion in value.
Russia’s invasion of Ukraine, along with supply chain bottlenecks and rising prices, have heightened concerns in the gaming industry. game, including Microsoft and Sony, have chosen to end their operations in Russia.
According to Ampere, the market will return to growth in 2023, with sales estimated at $195 billion.