Game Revenues Are Expected to Decline this Year
Revenue for games will decrease by one percent in 2019 to $ 136.5 billion, equivalent to SEK 1,237 billion. It assesses the analysis firm Pelham Smithers Associates based in London, writes Bloomberg News.
If the forecast hits right, it will be the first time since 1995 that the gaming industry has shown negative sales growth.
The decline this year is expected, according to Pelham, to be due to a number of factors, including China’s nine-month freeze of new games and a saturation of Fortnite fans. The popular shooting game from Epic Games has hit all revenue records in 2018 thanks to the high level of purchases inside the game.
The analysis companies Newzoo and IDC have also lowered their forecasts. Newzoo sees revenue shrink by two percent on a weaker mobile market, while IDC points to game growth in China. That market shrank to a growth of five per cent last year after having grown 20 per cent a year since 2014.