In brief: A new report predicts that the games market place will decline in 2022, only in that location's no need to worry—the fall can exist blamed entirely on the pandemic. The manufacture is expected to rebound fast, passing the $200 billion milestone in 2023.

In its latest games market estimates report, Newzoo predicts that 2.9 billion players worldwide volition assistance the global games marketplace generate $175.viii billion this twelvemonth. That marks a decline of 1.1% compared to 2022, the first recorded fall the analytics firm has recorded.

A year-over-year refuse would be a business for any industry, but every bit we all know, 2022 was an unprecedented year. The pandemic and resulting restrictions saw the number of people opting for home-based entertainment skyrocket, and the arrival of the PS5 and Xbox Serial X/S gave the games marketplace a farther heave. It generated $177.eight billion concluding year, up a massive 23.i% YoY.

While the pandemic had a positive impact on the games industry in 2022, the disruption information technology caused to global supply chains, game development, and flake creation is now being felt. As a issue, the PC games marketplace is set to decline 1.7% to $35.9 billion in 2022, with $33.iii billion spent on downloaded/boxed games and $2.6 billion on browser games. Consoles game revenue is predicted to drop viii.nine% to $49.ii billion.

Equally we all know, the global scrap shortage is expected to final into 2022—Sony said demand for its PS5 volition outweigh supply throughout next year—and the scarcity of hardware is negatively impacting the market. The lifting of lockdowns, meanwhile, may upshot in a curt-term turn down in the levels of engagement as more than people pursue outdoor activities later on months of existence stuck indoors.

Not every segment of the industry looks prepare to fall in 2022. Mobile and tablet games, which haven't been equally affected by the pandemic, will grow by 4.4% to $90.7 billion. Still, Apple's removal of the IDFA (Identifier for Advertisers) "volition disrupt how many mobile game companies mensurate the success of their marketing campaigns," writes Newzoo.

The skilful news is that 2022 is expected to exist an anomaly; past 2023, revenue is predicted to reach $204.vi billion, with mobile gaming the fastest-growing segment.

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