FT: Gaming is Fading; Players Going Real World

Financial Times headline: Gaming tapers off post-pandemic as players return to the real world

Sub-headline: Companies across the industry have reported weakening sales and player engagement in recent months


Console makers Sony and Microsoft were the harbingers of a downturn in gaming, posting sales declines from their gaming businesses. Last month, Sony reported a 15 per cent drop in PlayStation engagement year-on-year.

On Monday Nvidia, which is a heavyweight in gaming chip production, reported lower second-quarter revenue because of weakness in its gaming business. Gaming revenue in the second quarter fell 44 per cent from the previous quarter and 33 per cent from a year earlier to $2.04bn.

Strauss Zelnick, chief executive of Take-Two Interactive, the company behind Grand Theft Auto, told investors this week that he does not believe “the entertainment business is recession proof or even necessarily recession resistant”. On Monday it released forecasted sales for the second quarter and the full year which fell short of analysts’ estimates, causing its share price to fall by 5 per cent.

Companies named in the OP cut and paste:

$SONY daily chart


$MSFT daily chart


$NVDA daily chart


$TTWO daily chart


More from the article in the OP concerning mobile gaming:


The biggest impact appears to be on the mobile segment of the gaming market, which has been the focus of dealmaking in recent years. Take-Two completed a $13bn acquisition of Zynga earlier this year, while EA bought a 3D mobile gaming company called Glu for $2bn last year.

EA said mobile bookings were down 2.5 per cent from the previous quarter, with legacy titles — excluding Fifa Mobile — performing quite poorly.

Andrew Wilson, chief executive at EA, told analysts there was one “open question” the industry was facing: “in a world where you can engage deeply without spending, how will we see spending through this period?”