
The second quarter has been disappointing for video game giants Microsoft, Sony and Nintendo, which have announced lower related revenues, according to US news network CNBC.
The main reason is that people are spending less time indoors than in the recent past. Video games, after all, have been one of the main beneficiaries of the coronavirus pandemic, but once inflation began to rise and containment measures were lifted, the industry suffered.
In particular, in the April-June quarter, the above groups experienced a decline in sales, which also indicates a general decline in US consumer spending on electronic games. Americans spent $12.4 billion on these activities in the second quarter, down 13% from the same period a year ago, according to research firm NPD. The widespread shortage of semiconductors also took a toll on video game sales.
As Hiroki Totoki, CFO of Sony, points out, “The development of the e-gaming market as a whole has slowed down because users have more opportunities to get out of the house, while cases of coronavirus, especially in our core markets, are now receding.” On an annualized basis, Sony’s second-quarter sales fell 2%, operating income fell nearly 37%, and full-year video game earnings forecasts were cut 16%. At Microsoft, total revenue fell 7% year-on-year in the second quarter, Xbox console sales fell 11%, and gaming content and services revenue fell 6%. As for Activision Bizzard, the troubled game maker that was acquired by Microsoft, it posted a 70% drop in net profit and a 29% drop in revenue in the second quarter, according to news network CNBC.
Finally, Nintendo, known for its Super Mario video game series, saw its operating profit fall 15% in the April-June quarter, largely due to a shortage of semiconductors, preventing it from selling as many consoles as it really wanted. meet the demand.
Source: Kathimerini

Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.