Video Game Industry Stalls, Stocks Plunge. What’s Going On?
WOLF STREET, by Adam Williams • Mar 13, 2019
Layoffs and closures — the beginnings of a major shakeout.
Video games have become the largest entertainment industry worldwide by revenue: $138 billion in 2018 – beating TV ($105 billion), film box office ($41 billion), and digital music ($17 billion). But in 2019, after two decades of incessant growth, something unthinkable is lining up to happen: Sales are projected to decline, according to analysts at Pelham Smithers, cited by Bloomberg
A lack of big hits, expensive flops, consumer frustration, and a slowdown in China all are to blame, according to the analysis. While true in general, it does not tell the whole story: A gamer-revolt against practices, deeper trouble in China, a decline in mobile gaming, and changing spending patterns have stalled growth and are beginning to cause serious waves. Read More
Analysis: While this article doesn't directly have to do with location-based gaming, it raises several key issues regarding the design strategies (or lack thereof) of the gaming industry. Location as an integral part of augmented reality games has shown itself to be critical to such games as Pokemon Go. But as this article points out, there are several industry issues that are inhibiting more successes like this from becoming a reality.