The market is too oversaturated with various projects, and companies suffering from a lack of money simply cannot raise prices
GamesIndustry.biz managed to talk with top managers of studios and investment companies who believe that the gaming industry will face a serious decline, and many studios will have to close in 2024 because they simply will not be able to pay off their loans, recruited to develop new projects at a time when the raging pandemic and various restrictions forced people to stay at home and spend a lot of money on games.
“If 2023 was the year of layoffs, then 2024 will be the year of closures. Not only developers, but also publishers, media, service companies… There are too many unprofitable businesses in video games. Up to two years of pain await us,” , says the publication’s interlocutor.
Companies also cannot raise prices for their projects, because the market is now too oversaturated with games. Moreover, new games have to compete not only with other new products, but also with already released single projects and service games that receive active support.
The interlocutors also noted that in the long term the industry will stabilize, but this process will begin in at least two years.
(news cover source)