The video game industry got a massive boost from the COVID pandemic in 2020 as more people spent time indoors, and next-generation consoles from Microsoft and Sony also boosted the industry. Experts say the industry expanded 26 percent from 2019 to 2021, reaching a record $191 billion in revenue; about 2.7 billion people play worldwide, and 75 percent of US households have at least one gamer.
Yet several factors are causing the boom to go bust this year. Those advanced consoles depend on components that are getting scarce, between supply chain problems and Russia’s invasion of Ukraine. Many gaming companies have also suspended operations in Russia, among the top 10 markets in the industry. As inflation rises in the West and budgets tighten, moreover, fewer people are spending money on new games.
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