The video game industry is predicted to shrink for the first time since 2015. In a report released this week, UK-based market research firm Ampere Analysis said the global video games content and services market will decline by 1.2% in 2022 to $188 billion.
The annual decline comes after a boom in video game sales during the COVID-19 pandemic. Between 2019 and 2021, the market expanded by 26%, hitting a record $191 billion last year, according to Ampere.
The market report cites supply shortages, the war in Ukraine and a potential recession as factors contributing to the decline. Ampere research director Piers Harding-Rolls said the industry isn’t “recession proof.”
“After two years of huge expansion, the games market is poised to hand back a bit of that growth in 2022 as multiple factors combine to undermine performance,” said Harding-Rolls in the report. “Even so, the year will end well ahead of pre-pandemic performance, and the outlook for the sector as a whole remains positive.”
The market is predicted to continue growth in 2023, with sales expected to rise from their record-breaking mark in 2021 to $195 billion.