After Nearly 25 Years, The Gaming Industry's Revenue Might Drop!

General news News 01/26/2019

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Since 1995, we haven’t seen the gaming industry (which tries to keep up with the technology’s improvement) lose revenue. However, this year, it might happen!

Pelham Smither, a financial analyst, wrote on Bloomberg that in 2019, he predicts a near 1% revenue drop for the gaming industry. He thinks it’s going to happen because of China strengthening the mobile game approval rules (meaning it’s harder to get accepted), which will affect Tencent, a major Chinese company that is also present in several Western companies. The console sales are also predicted to slow, and the battle royale-fad, led by PlayerUnknown’s Battlegrounds and Fortnite, might also see a slowdown in 2019.

„The various bits of the jigsaw puzzle just don’t add up, so we’re looking for the market to shrink in 2019. The sell-off in video game stocks is primarily down to a growing realization of the risk that this view is right. […] There is a lack of fresh, innovative blockbuster titles replacing the current, ageing top titles. For the longer term, we are now more cautious about the global growth rate of the mobile games market,” Smithers wrote.

The situation could be improved if Sony and Microsoft cuts their console prices for the PlayStation 4 (Slim, Pro) and the Xbox One (S, X), respectively…

Source: WCCFTech

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Angyal Anikó

Anikó, our news editor and communication manager, is more interested in the business side of the gaming industry. She worked at banks, and she has a vast knowledge of business life. Still, she likes puzzle and story-oriented games, like Sherlock Holmes: Crimes & Punishments, which is her favourite title. She also played The Sims 3, but after accidentally killing a whole sim family, swore not to play it again. (For our office address, email and phone number check out our IMPRESSUM)