Gaming industry battles slowdown

The US$200 billion-a-year (HK$1.56 trillion) video game industry is experiencing its worst slowdown in 30 years as the huge growth fueled by games on the latest generation of consoles and smartphones reaches its limits, the Financial Times reports.

Hardware sales are experiencing a deceleration, with Sony lowering sales expectations for the PlayStation 5 this week.

Following the sales of more than 50 million PlayStation 5 units in December, Sony estimates that game console sales will gradually decline from the next fiscal year onward.

Consumer spending on mobile games decreased 2 percent to US$107.3 billion last year, with an expected low single-digit growth in 2024, according to Data.ai.

Ampere Analysis said: "We are currently in a period of slower growth and there is a lot of business anxiety about growth, profitability, controlling budgets, and how to influence the market with so many mature products."

Staff reporter