Gaming companies have been hit with weakening sales and engagement in recent months, as players returned to real-world pursuits post-pandemic and began cutting back on their spending amid a cost of living crisis.
Console producers, video game publishers and gaming chipmakers across the industry have reported a fall in demand in the latest quarter, challenging the belief that gaming is one of the most recession-proof forms of entertainment.
The slowdown comes after the sector saw a surge in demand and bumper profits during the pandemic, as global lockdowns drove a spike in consumers’ appetite for virtual entertainment and which, in turn, saw dealmaking rise sharply within the industry.
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