The video game industry took a step back in the first half of this financial year following a surge of interest and spending at the height of the pandemic.
Lackluster earnings by some of the largest companies in tech come in the context of issues plaguing the industry, including the ongoing semiconductor shortage. The tech industry has also been hampered by supply chain disruptions and the return of outdoor recreational activity.
- U.S. consumers spent $12.4 billion on games in Q2 2022, a 13% dip year-over-year.
- Microsoft saw gaming revenue fall by $259 million in fiscal Q4 2022.
- Sony’s Game & Network Services segment reported a 2% decline in sales in fiscal Q1.
Mobile games, which have benefited from their availability, also took a hit in the first half of 2022. The mobile game market reached $11.4 billion in H1 FY2022, a 9.6% drop year-over-year.
Still Drawing Interest
Mobile games have still piqued the interest of some of the largest companies in private equity, social media, and tech.
Earlier this year, Meta invested $40 million in Tokyo-based mobile gaming company Playco, while social media giant TikTok has begun pilot testing games for its app in collaboration with some of the most innovative developers in mobile gaming.
Last month, private equity firm Joffre Capital announced plans to raise capital to fund a potential bid to acquire full control of digital entertainment and mobile gaming company Playtika — which has a market value of $5.3 billion, according to Bloomberg.
