In 2023, the video game market will face significant challenges, as shown in the previous year, with cancellations of games by companies like Ubisoft and concerns about the agreement between Microsoft and Activision expressed by Google and Nvidia. Analysts predict that these challenges will continue throughout this year, but that there will also be new trends that will shape the industry.
The first major trend is the move from AA and AAA publishers to service-based models, which are more flexible and provide a stable revenue stream. The Microsoft-Activision deal has also come under scrutiny, as it could have significant implications for the video game market. Additionally, hybrid monetization strategies for PC and console publishers were discussed.
The second important trend is the decreasing appetite for mergers and acquisitions (M&A) in the video game industry. After two banner years, the market began to weaken in 2022, cooling the appetite for investments and mergers and acquisitions. Analysts expect M&A activity in the gaming sector to slow for an extended period due to the economic and regulatory situation.
The third important trend relates to the global semiconductor supply chain. Due to supply chain issues, many people have had to wait a long time before they can buy current-gen consoles. However, it looks like most of the supply chain issues have been resolved for 2023, which will boost console availability.
Finally, the fourth important trend is the rise of video games in cars. With the advent of self-driving cars, analysts predict video games could become an integral part of the driving experience. Companies in the video game industry are already working on virtual reality gaming experiences for self-driving cars, and this is expected to become a significant market in the coming years.
Analysts emphasize that these trends are not exhaustive and that there will be other important developments throughout the year. However, these trends are likely to play a significant role in how the video game market will evolve in 2023 and beyond.
It is important to note that the previous year was marked by significant disruptions, in particular due to the COVID-19 pandemic. Analysts believe the pandemic will continue to impact the video game industry in 2023, but the industry has learned to adapt to these disruptions and maintain solid growth despite the challenges.
