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Analysts See Video Game Industry Revenue to Decrease In 2019

Fortnite is turned into a social phenomenon when video games arise. This also turned esports into a competent rival of NFL stealing its avid viewers and became bigger than Hollywood when it comes to revenue making. But right now, an analyst tested on its trade seeks to call the attention of everyone announcing video game industry is taking a downturn for the first time this 2019. Is it a myth or a near truth? Let us all dare to know.

Revenue on Video Game Industry’s First Decline

Since the year 1995, the revenue of the video game industry hasn’t met a slump yet. However, a veteran analyst reviewing video game industry statistics saw a possible decline this year for the first time. The industry’s sales are expected to experience a downturn this year by 1%. Which equals $136.5 billion in total says Pelham Smithers, eponymously referred as a research firm based in London.

Apparently, Smithers directly blamed China for its questionable stricter approach in approving games. Well, who wouldn’t agree to Smithers in this? Besides, China blocking the way of numerous exciting games before it even hit the video game consoles in the said country aroused the shortage of huge hits. You can actually imagine Fortnite player out there having a hard time because of that. Not mentioning that the country banned numerous battle-royale games too.

Tencent and Electronics Art Recent Drop

Smithers actually started covering video game industry news since the late 1980s. Like so, to prove that he is right about his radical prophecy about the video game industry revenue, he emphasizes the sharp drop of Electronics Arts Inc. and Tencent Holdings Ltd. Stocks which only happens recently. He even added that the drag will last until the year 2020.

On the other hand, others still don’t see this theory as fruition. In fact, Smithers’ rival analyst at Nomura Holdings Inc. to Goldman Sachs Group Inc. still clings to their vision that games still have the click to grow as a big industry in the future.

Yet, it seems that the veteran analyst got a nod from the research firm Newzoo this time. The firm summarized its 2019 and 2018 expected revenue ranging from 2% to 3%. This is due to the weaknesses found in mobile games. Moreover, in the year 2018, the video game industry growth in China has slowed down to 5%. Thereafter the said industry expanded for about 20% each year starting from 2014.


If we study Smithers’ theory well enough. We will realize that this report is not that actually sad for the video game industry. This is actually a beneficial warning for companies competing in the said arena. To reflect and renew their tactics in order to reverse this possible curse. More so, we know that all the gamers reading this are surely having a hard time by now. Therefore, keep watching out for further news about this topic and we will see if how it will turn out. For now, enjoy your favorite big video game console hits and take your rival players down.

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