Video Games On The Downhill Slope: A Significant Sector Of The Industry May Be Facing A Considerable Drop In Revenues

By Enrique D. Fernández

Mobile games are gaining more and more ground, but competition is increasingly risky and the consequences of the confrontation translate into worrying numbers.

In recent years, the video game industry has become one of the most solid and profitable sectors in the entertainment market. Its positioning above the music and film sectors together gave the videogames industry a privileged place in the world's economy. Besides, the constant rise of this industry only confirms the fact that many of the companies involved in this process are enjoying a successful present.

However, as the year draws to a close, specialists speak of a reduction in numbers in the mobile gaming sector.

These are times of assessment for the companies that drive the production of the main entertainment market worldwide. For those involved in the development of mobile video games, these are times of bad news.

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According to Newzoo analysts, in recent months the market value suffered a 4.3% reduction in revenues, which translates into $184.4 billion.

Some of the reasons are possible delays in the videogames releases that were scheduled to come out in mid-2022 and have not yet seen the light. For those who project revenues worth millions each month, this value presents a considerable drop.

Mobile video games are expected to lose 80 million players by December 2022. Although there are always stipulated drops due to the level of inflation that afflicts the different countries around the world, this figure may be worrying for the market if the plans of the main producers are not adjusted.

According to the data provided by Statista, this year saw an estimated 1.17 billion players, as opposed to last year's 1.82 billion players.

However, market analysts informed that the total amount of revenues from videogames between 2020 and 2022 so far, stands around $43 billion, a higher sum than originally estimated.

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Even the statistics that forecast the numbers in gaming speak of a successful future for the main companies.

Taking into account this reduction, it is expected that by 2025 the industry will have $221.2 billion in revenues. As a result, specialists expect the market to settle again in the coming months since the aftermath of the pandemic has altered the performance and consumption of video games.

The Key Role of the Pandemic

During the months when millions of people had to comply with the quarantine, there was an increase in videogames consumption at home. Yet, once the quarantine was over, outside entertainment was back into play and many titles took a back seat to gamers' leisure hours.

Newzoo claims that the video game industry will be inevitably affected. This may be due to the fact that little time is devoted to mobile videogames in comparison to console videogames, which demand larger hours in front of the television screen or monitor. We are talking about titles that ensure regular and constant use in gamers' life.

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Considering all these variables, the following are the estimated values for the end of 2022 for consoles and mobile games:

• Mobile games: $92.2 billion (6.4% above 2021)
• Consoles: $51.8 billion (4.2% below 2021)

These is no conclusive data for PC games just yet.

The Game Owners

China remains the top lucrative country globally, generating $45.8 billion, and is expected to remain unbeatable. This is true even when we consider the changes that China's population had to face, due to the government's restrictions on the number of hours that people are able to spend playing games - plus the fact that developers are obliged to sign with a Chinese publisher.

Some companies also had to set delays in release dates in order not to flood the market. Close behind China is the United States, with $45 billion in revenues.

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Together, these two countries account for 49% of international spending on video games.

It is probably time for the mobile market to find new directions to keep its users focused on video games that have the difficult task of standing up to the console giants.

These are times of change and we should be prepared not to stand idly by in the most important global entertainment industry.