The Gaming Industry's Rollercoaster: Record-Breaking Wins and Shocking Losses—What You Need to Know!

Top News Items            Industry News   (26/08/24 - 01/09/24)

• Bullish Hope Despite Challenges in the Gaming Industry

The gaming industry has seen mixed signals over the past week. On one hand, there are growing concerns about the difficulties in financing games, as highlighted by several recent articles. Gamesindustry.biz warned about the need to survive until 2025, while Gamesradar reported on the financial struggles of indie developers, particularly criticizing the 30% Steam store tax. Even AAA publishers are feeling the strain, with Sony's latest hero shooter, Concord, being a costly failure.

However, there is still optimism at a macro level. Despite tightening budgets and increased competition, major platforms like Steam continue to report growth, with concurrent player numbers approaching the 40 million mark. The success of Gamescom 2024, which broke attendance records, further highlights the enduring passion for gaming.

• PS5 Price Increase in Japan: Another Shock for Consumers

Sony has announced another price hike for the PS5 in Japan, citing a “challenging external environment.” This 19% increase marks the second time in four years that Sony has raised prices in Japan, with the standard PS5 model now costing around $550. Analysts point out that the PlayStation business division's margin has slipped significantly, and the depreciating Yen is adding to Sony's financial strain. Interestingly, other regions, particularly the U.S., have been exempt from these price increases.

• Nintendo Direct & Indie Showcase: A Win for PlayStation?

Nintendo recently unveiled over 40 games during its latest Direct in partnership with Indie World. While the showcase was extensive, some industry insiders suggest that PlayStation may have won this round, as Nintendo's announcements, though numerous, didn't steal the spotlight.

• Black Myth: Wukong Shatters Steam Records

Steam has once again broken its concurrent player record, reaching 37.2 million players on August 25th. A significant contributor to this milestone is Black Myth: Wukong, which has already sold over 10 million units in just 10 days. This impressive performance places it as the second most played game on Steam, right behind PUBG.

• GameStop Goes Retro

In the U.S., GameStop is opening a series of “retro” stores focused on selling vintage consoles and games. While the retro market is niche, it has the potential to be profitable. However, whether GameStop can successfully capitalize on this market remains to be seen, especially with competitors like eBay offering direct-to-consumer sales options.

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      Weeks commencing Monday 26 August 2024