The gaming industry is experiencing its largest decline in the last 30 years

The video game industry is currently experiencing its most significant decline in the last 30 years, affecting both console and mobile market segments.

Players have reduced their spending on mobile games by 2% compared to the previous year, indicating a slowdown in this segment’s dynamics.

Many companies have faced challenges in quickly recovering from the decline in 2022, attributed to post-pandemic conditions, which also impact the video game industry. This has led to mass layoffs in studios, with approximately 10,000 employees laid off only in 2023.

Free online games, such as Fortnite and Roblox, significantly impact the industry by consuming players’ gaming hours and leading to reduced spending, as players previously purchased titles for $70. Additionally, the cost of developing AAA games is rising due to inflated expectations.

The industry faces additional pressure from competition with major companies like Disney and Netflix, showing interest in this sector.