Entertainment companies, particularly in the gaming sector, are facing a slowdown in demand considering their pandemic highs. According to data from analytics firm NPD, U.S. consumer spending on video games fell 11% in June and is expected to decline 8.7% this year. The slowdown comes atop the struggles due to component shortages.
This has raised concerns about the entertainment industry’s ability to weather a downturn. Long thought to be recession-proof, the gaming industry is now seeing a drop in revenues as consumers weigh discretionary purchases. Moreover, an Ampere Analysis research forecasted global video game sales to contract by 1.2% to $188 billion in 2022.
