The leading names in the video game world, Microsoft, Sony and Nintendo, have published their reports for the quarter ending in June 2022. Published reports revealed that there is a shrinkage in the video game world. While sales of all companies decreased, the reason for this was the COVID-19 pandemic, which was left behind, at least in terms of restrictions. According to industry sources, people who are bored of staying at home are now going out and don’t care about video games as much as they used to.
According to research by market research company NPD, gamers in the US alone spent $12.4 billion on games in the second quarter of the year. Although this figure seems astonishing, it is thought-provoking for the sector. Because, when compared to last year, we see a 13 percent contraction. This is reflected in the sales of Microsoft, Sony and Nintendo.
Sony’s profitability decreased by 37 percent!
In the statements made by Sony, it was stated that game-related revenues decreased by 2 percent. The profitability of the company also decreased by 37 percent. Sony, which also lowered its profitability forecast for the end of the year, thinks that it will close the year 2022 with 16 percent profit. In addition to all this, Sony announced that the average game time of Playstation players has decreased by 15 percent. Hiroki Totoki, Sony’s chief financial officer, said that as people’s opportunities to get out of the house increased, interest in video games decreased. In addition to all this, let’s say that Sony sold 2.4 million PlayStations last quarter. This figure is almost the same as last year.
Microsoft’s Xbox sales fell 11 percent
The statements made by Microsoft were also not encouraging. The company announced that game revenues were 7 percent lower than the same period last year. Mentioning that Xbox sales fell 11 percent, Microsoft said that the revenue from game content fell 6 percent. With this; Activision, one of Microsoft’s game companies, announced that its net profit decreased by 70 percent and its revenue by 29 percent. However, this drop is not exclusive to Activision. Ubisoft also announced a 10 percent drop in revenue. EA, on the other hand, increased its revenue and profitability, unlike the industry. The company’s profits increased by 50 percent and revenues increased by 14 percent.
Nintendo says they fell victim to the chip crisis!
Nintendo announced that its operating profit decreased by 15 percent in its statements for the April-June 2022 period. The company, which sold 3.43 million Switch consoles, sold 41.4 million game-software. In the statements made by the company, it was stated that the reason for the decrease was the chip crisis. According to the company, Switch production was disrupted due to the chip crisis, and as a natural result, sales fell.
According to analysts, 2022 will be the worst period of the last 10 years
According to the research company Ampere Analysis, 2022 will be a tough year for the video game world. In this context; According to experts, who estimate the market size to be 188 billion dollars, this figure will be recorded as the first contraction in the last 10 years. It is thought that the global economic crisis and inflationary pressures will push people away from video games even more.
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