Video games: Covid years fever has dropped

After two flourishing years, the sector experienced a cooling period in 2022, with a market decline of 4.3 %. In question: the resumption of inflation and the shortages of semiconductors, which weighed on the production of consoles.

by Vincent Fagot

The start of the year is difficult for the video game industry. One after the other, the publishers find the fall in their income and envisage job cuts, whether in the American Microsoft or the Chinese tence. Same tone at Ubisoft, the Frenchman having announced, on January 12, plan sales down “more than 10 %” for the financial year 2022-2023 compared to the previous year, highlighting “the deterioration of macroeconomic conditions “. Another negative element: the new postponement of the game “Skull and Bones”, initially scheduled for November 2022, while Aubisoft also said that it has stopped the development of three “not announced” projects, in addition to the four stops already communicated in July 2022 .

To this situation is added a deterioration in relations within the company. Friday, January 27, Ubisoft employees were called to a strike movement by their unions to denounce the managerial practices of the management.

“Some publishers had swelled market growth”, interpreter Charles-Louis Planade, financial analyst at Midcap Partners. Indeed, after two years of euphoria marked by the development of entertainment at home during the confinements linked to the pandemic of COVVI-19, the video game experienced a cooling period in 2022, with a decrease in the market of 4.3 %, at 184 billion dollars (169.5 billion euros), according to the specialized firm Newzoo . The trend is even more marked for the mobile game sector (- 6.4 %), which alone concentrates half of industry income.

/Media reports cited above.