Delayed releases of new titles such as “Starfield” are some of the factors that have cooled the video game fervor and could re-heat when blockbusters launch.
At the height of the pandemic, video games offered people solace in seclusion. But as life is slowly returning to normal pre-crisis levels and inflation is on the rise, gaming companies are feeling the bottleneck.
Makers of consoles, accessories and software for gaming are experiencing the same kind of post-pandemic effect as tech titans saw business grow as fears of COVID-19 kept people close to home.
The pressure has been compounded by steep inflation that tightens the belt and gaming fatigue after years of relying on indoor entertainment.
In the beginning of the pandemic, “people flocked to Twitch — streamers and viewers alike,” said Brandon Williams, who uses the handle “BWpaco” on the Amazon platform where gamers broadcast video game action.
“But I’ve talked to quite a few people who have stopped streaming because they’ve been burned out or because it’s not for them,” the 30-year-old streamer added.
“Or they have run out of time since they went back to work in person.”
The number of Twitch viewers that surged during the pandemic has declined, but remains above what it was in 2019, according to twitchtracker.com.
Games still in play
Matt Piscatella, an analyst with market research group NPD, estimated that people in the United States will spend a total of about $55.5 billion on gaming this year, less than last year but still 28 percent more than in the pre-pandemic year 2019. .
Activision Blizzard has reported cooling sales as players spend less time on the blockbuster ‘Call of Duty’ action games.
US video game giant Activision Blizzard, which Microsoft is currently buying, reported that sales fell in the first half of this year, with gamers spending less time in the powerful “Call of Duty” franchise.
Nvidia, the California-based maker of high-end graphics cards popular with gamers, recently issued a profit warning over “declining video game revenues.”
Even mobile game spending is showing signs of weakening, according to analysts.
Higher prices in day-to-day spending categories such as food and gas, the return of experience spending such as travel and attending live events, lighter releases of new games, and ongoing supply restrictions on next-generation console hardware likely all contributed to the observed decline. the second quarter,” said Piscatella.
Omdia analyst Steven Bailey said delayed releases of highly anticipated titles such as “Starfield” and “Suicide Squad” also contributed to a pandemic “correction” that was inevitable.
on the lurk
The bump that new titles are bringing to video game sales is a wildcard that is likely to benefit the industry in the future as players typically scramble to get their hands on hot releases.
Piscatella expressed hope that the video game market will stabilize in the coming year and return to steady growth thereafter.
Some Twitch streamers are seeing a trend of viewers choosing to listen to broadcasts just like a radio show.
The rising cost of living due to inflation is forcing gamers to make choices with their money, but that doesn’t mean they’re giving up the game, the analyst noted.
More than three-quarters of U.S. consumers play video games, and subscription services like Xbox Game Pass and PlayStation Plus are helping to cut costs, Piscatella said.
Pandemic effects on video game play have moved beyond the economic arena, leading to a trend of players seeking “comfort games” that emphasize collaboration rather than competition.
The explosion of Nintendo’s “Animal Crossing” game dedicated to community building is an example of this phenomenon, where players unite to support virtual cities.
And according to streamer BWpaco, viewers listen to Twitch channels as if they were doing a radio broadcast while their attention is elsewhere.
“They’re just lurking,” the streamer said.
“I now feel like things have reopened and people are busier, they have it on as background noise.”
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© 2022 AFP
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