The video game industry is experiencing sluggish growth in 2024 for several reasons
Slow console sales
Gaming console sales have not met expectations. For example, sales of Sony’s PlayStation 5 have decreased from 3.3 million units in the same period last year to 2.4 million units in the fiscal first quarter of 2024.
Post-Pandemic
The gaming industry experienced a substantial increase during the COVID-19 pandemic due to people staying indoors more often. Yet, with the easing of restrictions, there has been a noticeable change in consumer habits, with a trend towards increased outdoor activities.
Economic considerations
Increased interest rates and inflation have diminished discretionary income, leading to a decrease in consumer spending on games.
Challenges
The industry has faced mass layoffs and other operational challenges, which have impacted growth.
Despite these challenges, there are optimistic projections for 2025 with anticipated major releases like the eagerly awaited successor to Nintendo’s Switch console and Grand Theft Auto (GTA) VI.
Future
Predictions for 2025 suggest that the new Nintendo console and GTA VI will make a significant impact, potentially revitalizing the industry.
The U.S. and China account for around half of consumer spending on games.
The gaming industry as a whole is currently estimated to be worth around $188 billion globally and this is projected to grow in 2025.