The fear of recession in the gaming market is growing with bad results

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Dark clouds of recession are approaching from the US and Europe, and the gaming industry is showing signs that it won’t be affected by the weather, reclaiming an old debate: After all, will the gaming market be recession-proof?

The reputation that gaming companies would be virtually immune to financial crises gained traction in the second half of the 1990s and early 2000s, when the sector was going through a period of sharp growth and seemed to struggle a bit during periods of economic turmoil.

In an article for Gameindustry.biz, researcher Rob Fahy pointed out two main factors to this phenomenon:

  • The rapid growth of the consuming public in that period. Kids who started playing video games in the late ’80s and early ’90s grew up and continued playing into their teens and early adulthood — with the help of a mature industry as well, which started making games for this audience, as more kids got in. Market.

  • Video games are a relatively inexpensive form of entertainment. Even in times of crisis and unemployment, people still look for forms of entertainment. In the case of games, for the same price as a night out for dinner with the family (or even less), you can buy a game and enjoy it for dozens of hours.

However, he says recent changes have put these two protective mattresses down significantly:

  • Although the toy market is still growing, The rhythm is no longer the same. In addition, one area where expansion is strongest, mobile gaming, has historically been underestimated by traditional companies in this sector and is often seen as less important, although that scenario is changing.

  • In addition, companies are increasingly betting on microtransactions and expansion packages, which requires that Players continue to spend even after making their first purchase. So some may not see video games as cheap entertainment options.

The unsatisfactory figures released by the industry in recent weeks can be understood as an indication that the protection that the sector once enjoyed in times of crisis no longer really exists.

Today’s top three console makers, Nintendo, Sony and Microsoft, reported lower-than-expected results in their gaming divisions, with sales of their flagship products dropping sharply.

Between April and June of this year, Nintendo recorded a 23% decrease in the sale of game consoles and 8.6% in the sale of games compared to the same period the previous year. Microsoft had only slightly better numbers, with hardware sales down 11% and software sales down 6%.

Sony has already announced a 4% increase in PlayStation 5 sales, but the good news ends there. PS4 and PS5 game sales are down 26% from a year ago, leading to a 2% drop in the company’s game revenue and lower expectations for the rest of the year.

And they weren’t the only ones. Capcom (from the “Resident Evil” and “Street Fighter” series) saw a 50% drop in sales; Square Enix (from “Final Fantasy”), down 15.5%, and Take-Two (from the “GTA” series), which reported its first since the Zynga acquisition, reported a 28% drop in sales in its fiscal first quarter compared to The sum of the results of the two companies in the same period in 2021.

However, negative numbers are seen by companies as the result of one-time, temporary problems rather than the beginning of a long-term crisis. Many of them, for example, point to an unfair comparison of the 2022 figures with the 2021 figures, when the gaming sector was still positively affected by increased sales during the lockdown.

“Growth in the gaming market as a whole has slowed as consumers are more likely to leave the home due to lower infections with the new coronavirus in key markets,” Sony said in its financial report, noting a 15% decrease in the time users spend on PlayStation devices.

Meanwhile, Nintendo attributed its findings to the repercussions of international logistical crises and the shortage of semiconductor chips.

Independent analysts also highlighted the lack of major launches in this period. “The hiatus in the middle of the year from releasing video games is unfortunate and much of it is a result of unfortunately. The disruption to game development has not helped due to the pandemic. […] Many publishers are waiting for their new games to be released, video game market analyst and consultant Sam Nagy said in an article on Gamesindustry.biz.

The argument is logical. Bandai Namco, the distributor of “Elden Ring,” one of the few big releases of 2022 to date, was one of the market outliers when it posted a 54.5% increase in toy sales last quarter.

In general, the state of the gaming sector can be summarized by the analysis of the consulting firm Newzoo. The company identified a slowdown in the market and lowered its forecast for 2022, but it still estimates 2% growth in the gaming industry as a whole.

If the forecast is correct, we should not see mass layoffs of studio staff or the cancellation of new games due to a lack of funds in the coming months. However, it seems clear that the times of blue skies and calm seas are over.


game

Game tip, new or old, for you to test

outlet

(PC and Switch)

“Portal” was released in 2007, and it can already be considered a classic. Valve is a first-person 3D puzzle game in which the player must use a weapon that produces multidimensional portals to reach the end of the labyrinth sequence. The premise is simple, but the physics challenges in the title require the player to think “outside the box” to find solutions. That alone would be fine, but the game still tells a great sci-fi story with plenty of fun dialogue. Originally released for PC, the game was recently released for Switch in a bundle that includes “Portal 2”, a sequel as good as the first title.


Modernization

News, launches, business and what else matters

  • In a document sent to Cade, Microsoft’s lawyers in Brazil accused Sony of paying developers for not putting their games on Xbox Game Pass, Adrenaline says. The demonstration took place after PlayStation owners took a stand against Microsoft’s acquisition of Activision Blizzard on the grounds that the “Call of Duty” series was too important a product to be subject to its exclusive competition.
  • The release of the open-world game “Hogwarts Legacy”, based on the Harry Potter universe, has been delayed. The game is tentatively scheduled for the end of this year, and the game is supposed to arrive on PC, PlayStation and Xbox consoles only on February 10, 2023. Posted on TwitterThe team responsible for the game said it “needs more time to deliver the best possible experience”.
  • The launch of the tactical RPG “Marvel’s Midnight Suns” has been postponed for the second time. The game developed by Firaxis Games (from the “Civilization” and “XCOM” series), which was expected to be released in March this year, should reach the public only in February or March of next year.
  • Square Enix has announced that its London studio is developing a new mobile game based on the Nickelodeon series “Avatar: The Legend of Aang”. The game will be called “Avatar: Generations,” and according to the company, it will be a free RPG with tactical battles. There is no scheduled release date.
  • Warner’s character fighting game “MultiVersus” is still in beta and last week reached 10 million players, according to data from tracker.gg. Scheduled to launch later this year, the game will be free to play and will have versions for PC, Xbox and PlayStation.

Download

Games coming out in the next few days and promotions that are worth it

August 15

“MultiVersus”: Free (PC, Xbox One/X/S, PS 4/5)

August 16

Rollerdrome: No price available (PC, PS 4/5)

August 17

Kirby Dream Buffet: BRL 77 (Switch)

August 18

The Curse of Golf: BRL 37.99 (Switch), no price available (PC, Xbox One/X/S, PS 4/5)

We are OFK: BRL 34.19 (Switch), price not available (PC, PS 4/5)

Time RPG: Legend of Wright: BRL 143 (Switch)

Thyme: No price available (PC, Xbox One/X/S, PS 4/5)

August 19

“Madden NFL 23”: R$249 (PC), $299 (Xbox One and PS 4), R$339 (Xbox X/S and PS5)

promotion of the week

Humble Bundle has launched a promotional campaign for games from the “Resident Evil” series. The price of sets varies from US$1 (US$5), for the simplest 3 games, to US$30 (US$150), for a full set of 10 games, including “Resident Evil 2” and “Resident Evil 3” remakes, And a 50% off coupon for “Resident Evil Village,” the newest title in the series. A portion of the amount raised will be donated to charities. Offer valid until August 24.


readings of the week

What came about games in agriculture


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