This week, the Wall Street Journal reported that video game companies are seeing a dip in their earnings report. Some of the largest video game moguls have been seeing earnings that are much lower than what they expected and anticipated initially at the start of 2022. While some were only off by a few hundred thousand, others were off by millions. Stated in this article, Wall Street Journal reports that one of the largest manufacturer of video games Activation Blizzard saw a 700 million-dollar dip in earnings. So what is accounting for this?
One thought is that there were issues with manufacturing of gaming consoles which then led to the decline in Revenue. Because many people were scrambling when it came to manufacturing holds that were impacted from the covid-19 crisis and also because of various inflation rates worldwide, console sales were not at their normal peak. Which then led to people not needing to purchase games as often as they typically would have. Another theory is that with the monetization of many games, people have lost the allure for it. Why not play the games you already have, or steer towards gaming streaming platforms. Instead of just purchasing one game, you can have a series of games for a given subscription model.
So over here at Business Athlete, what are our thoughts? Well for one, I agree that the subscription model is more enticing for video game users. For one, they don't have to seek to just buy individual games online but just stream them. Another interesting tidbit that comes from this article is that now that we're “post-pandemic”, people are excited to get back to in-person activities, because we've been deprived of it for almost two years. So the enthusiasm we were seeing for people wanting to game as often as they did during the pandemic has dwindled.
And lastly one key finding from this article that we have to agree with is that while over half of gamers are based in America we are facing indications of a recession. Gamers and consumers in general have to be smarter with their money and purchasing games may not be at the helm of necessary purchases.
Calling all our gamers, has your gaming budget and spending changed? What have you been spending on when it comes to gaming?
Let us know in the comments!