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The current turmoil in the video games industry will continue all year and likely into 2025, games industry leaders have told GamesIndustry.biz.
Speaking to us privately, publishing, development and investment heads have said that continued high interest rates, oversaturated video game stores and cautious investors will result in more restructures, layoffs and closures.
One CEO of a public company told us: "If 2023 was the year of layoffs, 2024 will be the year of closures. Not just developers, but publishers, media, service companies... There are just too many unprofitable businesses in video games. We're looking at up to two years of pain."
Some investors we spoke to expect interest rates to come down, which will likely stimulate more investment, but not until later this year. Until then, there are simply "far safer ways to invest your money than video games. Although it's not the only industry facing this issue," said one angel investor.
www.gamesindustry.biz
Speaking to us privately, publishing, development and investment heads have said that continued high interest rates, oversaturated video game stores and cautious investors will result in more restructures, layoffs and closures.
One CEO of a public company told us: "If 2023 was the year of layoffs, 2024 will be the year of closures. Not just developers, but publishers, media, service companies... There are just too many unprofitable businesses in video games. We're looking at up to two years of pain."
Some investors we spoke to expect interest rates to come down, which will likely stimulate more investment, but not until later this year. Until then, there are simply "far safer ways to invest your money than video games. Although it's not the only industry facing this issue," said one angel investor.
Games industry leaders braced 'for up to two years of pain'
Games industry bosses thing 2024 will be 'the year of closures'
www.gamesindustry.biz
