Inflation hits gaming hard, 2022 global games revenues drop over $8 billion

2022 wasn’t the best year for video game revenue. new report analyst firm Newzoo suggests.

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In 2020-2021, pandemic spending will generate record-breaking revenue for the big three in gaming (Sony, Microsoft, Nintendo) and various publishers such as Activision-Blizzard, Take-Two Interactive and Electronic Arts. bottom. As of 2022, the video game market is stable.

The global games market is expected to earn $184.4 billion in 2022, down a whopping 4.3% from 2021. A quick math shows that revenue in 2022 will be nearly $8.3 billion less than in the previous year.The latest from Newzoo Annual Gaming Market Report Note that this is the first year-over-year decline in global gaming revenue since the company began tracking the data.

The analyst firm correctly points out that as rising inflation markets put more pressure on disposable income, consumers are being forced to prioritize other needs over entertainment.

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Mobile gaming has been hit hard by decline.

The mobile segment is expected to earn $92.2 billion, accounting for 50% of total annual revenue. This is a decrease of -6.4% year-on-year. Newzoo said the decline was due to a number of factors, including scrutiny of privacy issues on iOS, impacting its ability to track user data and match ads.

Console games are also expected to fall -4.2% year-over-year to $51.8 billion, with fewer games released in 2022 than in 2022, especially due to late games, but breakouts like Elden Ring Out hits helped stabilize further losses.

The browser PC gaming segment saw the biggest drop. The segment, which companies such as Square Enix depend on, fell 16.7% year-on-year to $2.3 billion, accounting for just 1% of total consumer spending.

In fact, PC gaming revenue grew healthy, with revenue growing 1.8% to $38.2 billion. PC gaming still ranks third behind both mobile and console, but the gap between console and PC is narrowing. Console games accounted for 28% of his global revenue, while PC games accounted for 21% of his.