Thursday, September 29, 2022

Recession and growth: how the video game market will bounce back in the next decade

The video game market has evolved significantly over the past few decades to become one of the largest in the industry. With the increase in hardware, the way gaming is today could not have been imagined even a year ago.

Having said that, it is not free from the economic and market forces that rule the world, and a new study has revealed some important information about the near future. However, it is too early to worry about a possible doomsday for the gaming industry.

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Modern-day gaming has evolved dramatically from what it once used to be. Video games are no longer viewed as a means of pure entertainment, as professionals have helped grow the ecosystem even further. It is one of the rare industries that can manage the COVID-19 pandemic well. That being said, a new study has predicted that the gaming sector will see a decline in the foreseeable future.


A new study predicts a depressed market for video games due to external factors

According to Eurogamer, a new study looks at the immediate future of video games. As mentioned above, the market was flourishing during the COVID-19 pandemic as billions of people around the world were locked in their homes.

While other markets were falling, the early parts of the pandemic saw a rise, coinciding with the deadliest part of the pandemic. However, there is an estimation that the sales will go down soon.

Powered by Ampere analysis, the study finds that the PC gaming market will be affected by factors such as hardware shortages, which remain a problem.

Study results (image via Ampere Analytics)
Study results (image via Ampere Analytics)

According to market analyst Pierce Harding Rolls, after seeing tremendous growth in the last two years, there will be a slowdown in the market.

“After two years of vast expansion, the sports market is set to hand back a bit of that growth in 2022 as multiple factors combine to undermine performance.”

However, this should not be of immediate concern. Some would even say that this was expected. A number of factors besides hardware constraints resulted in the decline.

The global chaos between Russia and Ukraine has resulted in many publishers and companies exiting the European giant. It would be childish to think that this did not affect video game sales and finances.

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There have been further developments in Asian markets, such as tightening of digital privacy. Overall, these all appear to be Black Swan events that do not happen infrequently. These events will force companies to adjust accordingly. Once that happens, expect the market to rise again in 2023.

A downturn in the market doesn’t mean the video game craze is dying out. If anything, there has been an increase in demand, especially for consoles. Due to the lack of chips, the PS5 and Xbox Series XlS are in great demand around the world.

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However, an important lesson is that no market or industry is free from recession. It now remains to be seen when a comeback may occur and whether the gaming sector will be able to maintain the previous period of sustained growth as it moves into the third decade of the new millennium.


Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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