The game that video game companies are playing looks like a losing proposition. Since 2022, the U.S. gaming sector has shed a total of 30,500 jobs. So far, this year alone, 11,500 jobs were lost.
On the winning side, this year, overall global consumer spending on video games is expected to grow 3.6 percent, after rising 1.8 percent in 2023. Previously, in 2020, the sector grew an astonishing 23.4 percent, a result of the pandemic forcing people inside.
But, while many entertainment segments have returned to pre-pandemic levels, gaming is now performing worse than expected, partly due to games that were anticipated to do well but instead flopped, and economic concerns.
Industry consolidation has generated additional job cuts and now the sector is focusing on profitability and efficiency, rather than growth. According to Forbes, the gaming industry is expected to be worth $312 billion by 2027.
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