Leaders in the video game industry believe that the current turmoil in the market will persist throughout the year and possibly into 2025. However, despite these difficulties, the video game industry remains hopeful and optimistic about its prospects for the future.
In conversations with publishers, producers, and investors, we have learned that high interest rates, market saturation, and cautious investors will contribute to further restructuring, layoffs, and closures in the industry. However, a significant portion of industry professionals believe that this is just a passing crisis.
Some investors expect interest rate cuts later in the year, which will likely stimulate investment. However, until the cuts happen, there are “much safer ways to invest than video games,” according to one investor. Insurance, travel, rent, and other business costs also have a significant impact on expenses.
Difficulties also arise from the overproduction of games that were approved in 2020 and 2021. The surplus of games on the market creates competition, and many of them fail to meet user expectations. It becomes necessary to focus on what is done best and reorganize and cut off unprofitable areas.
Despite these challenges, the video game industry is experiencing a growth in popularity and revenue. Players are satisfied with the fantastic games offered to them and are playing them in the hundreds of millions. The video game market is expanding and has prospects for the future, although it is currently facing difficulties.
It is worth noting that the problems in the video game industry are not solely due to internal factors. Global issues such as excessive government spending related to the pandemic and political issues also impact the current situation.
Nevertheless, the video game industry remains hopeful for the future. Investments and the development of new projects are still taking place, and after the crisis, a more stable and wise video game industry is expected.
In summary, although the current turbulence in the video game market presents many difficulties, the prospects for the future are promising. Despite overproduction and competition, the video game industry continues to enjoy popularity and grow. After the storm settles, a more stable and thriving video game sector is anticipated.
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The source of the article is from the blog lisboatv.pt