Gamers are turning off their PlayStation and Xbox consoles
Gamers are turning off their PlayStation and Xbox consoles

Gamers are turning off their PlayStation and Xbox consoles

Microsoft and Sony released earnings last week that suggest there’s undeniable softness in the sector—at least in the short term—after a pandemic-driven boom over the prior two years. The results mirror recent reports finding a slowdown in video game spending and engagement in the first half of 2022, potentially putting the industry on track for a rare year of contraction.  https://dailytechfeed.com

The recent semi-swoon has Wall Street ever-so-slightly on edge about the industry’s immediate prospects—even if it remains bullish on the long-term outlook.

Xbox parent company Microsoft said Wednesday that its gaming-related revenue declined 7% year-over-year in the most recent quarter, or 5% in constant currency, as hardware sales slowed and gamers spent less time online. By comparison, Microsoft’s gaming revenue rose 6% year-over-year in the prior quarter, or 8% in constant currency.

The results were even more grim Friday evening for PlayStation parent Sony, with the Japanese giant reporting a 12% year-over-year quarterly drop in game and network service revenue and a 31% fall in the unit’s operating income. Sony CFO Hiroki Totoki said that players spent 15% less time on PlayStation products in the quarter compared to the previous year—“a much lower engagement level than we anticipated in our previous forecast.”