Video games: a historic market decline in 2022

The video game market is not looking good. Indeed, a historic drop is expected in 2022.

The video game market is going through hard times. Indeed, a new Ampere Analysis report published by the Phonandroid site has just shown that the latter is experiencing its first decline this year 2022. We learn that video games made less money this year compared to last year. In particular, there was a decrease of 1.2%. This situation will be related, in particular, to international news, the Covid-19 pandemic or the war in Ukraine.

Downturn in the video game market

The video game market is very interesting, especially since it is still growing. Its turnover also approached $200 billion in 2020 ($182 billion) and in 2021 ($191 billion). However, the economic and health contexts lead to a recession in 2022.

Indeed, British research firm Ampere Analysis has just estimated that the video game market will hit $188 billion this year, down $3 billion from 2021. However, this situation looks more like a rebalancing than a real market fall.

Growth Through Constraints

Indeed, it should be noted first of all that the market has experienced strong growth over the past two years due to the Covid-19 pandemic. Many households have indeed equipped themselves with consoles and PCs in order to be able to enjoy watching video games. So sales increased in 2020 and continued into 2021 with various health restrictions.

With the health situation now “normalized”, the market is returning to its usual pace. However, the analyst firm clarified that the market will start growing again in 2023 with a turnover of $195 billion. The fall can also be explained by other phenomena: the war in Ukraine, acceleration of inflation and a decrease in purchasing power; component shortages affecting the production of consoles and video cards; but also the impact of the decisions taken against Russia, the 10th country in the global video game market. Finally, the new privacy policy of Google and Apple will cause the mobile games market to fall in 2022 (1.3%).

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