Analysts: The games industry is not going anywhere in the face of a recession
James Batchelor
Editor-in-Chief
Friday 1st July 2022
The Western markets are likely heading towards a recession -- one that will inevitably impact the video games industry.
The extent of that impact has been discussed already -- including on this very site. Twice, in fact. And yet the prospect of an economic downturn remains something that warrants considering. While the industry has previously been dubbed 'recession-proof,' a lot has changed since the 2008 recession and our own Rob Fahey is less convinced the industry will remain unscathed if things do take a turn for the worst.
Whether or not there will even be a recession is still up for debate. Karol Severin, Midia Research's head games analyst, believes it is inevitable.
"Signs were already there in 2019 -- even before the effects of COVID, logistics/supply chain issues, cost of living crisis and Russia's ongoing invasion of Ukraine," he tells GamesIndustry.biz. "From the consumer point of view, you can argue the tough times are already very much being felt as the cost of living crisis continues, along with high inflation and growing interest rates which are to affect mortgage payments, and therefore wider disposable income on things like entertainment.
Karol Severin, Midia Research
"Things will likely keep getting progressively worse until the end of the year at the minimum, and likely for months after that. Consumers, however, may feel the effects of it all for much longer."
Ampere Analysis' games research director Piers Harding-Rolls argues a recession is "not guaranteed" at this point, but does note that the macroeconomic situation is likely to disrupt millions of people's spending habits in the near future.
"Inflation and the cost of living squeeze is being felt broadly
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