Annual sales of video games have started to decline for the first time in several years. According to forecasts, the global market of games and services will decrease by 1.2% to $118 billion in 2022. This is reported by CNBC, citing Ampere Analysis.
An industry that thrived during the coronavirus pandemic may now be in decline. From 2019 to 2021, it expanded by 26% and reached a record $191 billion. Video game sales have been steadily increasing since 2015.
Growth was boosted by the emergence of Covid-19 when people had to spend more time at home due to lockdowns. The release of next-generation game consoles from Microsoft and Sony also contributed to the development of the industry.
Currently, logistical issues and shortages of critical components have created a situation where Microsoft’s new Xbox Series X and S and Sony’s PlayStation 5 are difficult to purchase online or in-store. The Russian invasion, along with bottlenecks in supply chains and rising inflation, made conditions for gaming industry even worse.
In 2021, according to Ampere, Russia was the tenth largest game market in the world. It is expected to drop to fourteenth place this year and lose $1.2 billion in value.
“After two years of a huge expansion, the games market is poised to hand back a bit of that growth in 2022 as multiple factors combine to undermine performance. Even so, the year will end well ahead of the pre-pandemic performance, and the outlook for the sector as a whole remains positive, with growth forecast to return in 2023,” says Ampere Analysis Research Director.