The popularity of video games has declined for several reasons. For one thing, it’s more expensive than ever to develop them. The development of even a simple game can cost hundreds of millions of dollars. That’s enough to derail any business plan. At the same time, the industry is enormous – bigger than the music and movie industries combined. Moreover, the market is growing – there are two billion players worldwide, or about 26% of the world’s population.
The problem is that the gaming industry has become more focused on generating massive profits and money-making mechanics, rather than a quality game that is engaging and entertaining. In the process, games have lost their purpose and have been reduced to shallow gambling simulators. Moreover, PC gaming is no longer the number one revenue generator – it makes up just 25 percent of the total industry revenue in 2019. Meanwhile, console games are also seeing a steep decline in market share.
The industry began experiencing growing pains in the early 1980s, when many unqualified companies entered the field. They attempted to capitalize on the market despite the pitfalls of their lack of experience. This industry’s growth was stunted in the aftermath of the 1983 crash, which decimated the North American market. As a result, Japanese companies seized the opportunity to dominate the industry and major publishing houses appeared. While video games remain a popular form of entertainment, their sales are dropping.