DECRYPTION – Console builders and game publishers are suffering from an indigestible cocktail of inflation and component shortages.
Chinese entertainment juggernaut Tencent is set to become the majority shareholder of French studio Ubisoft, according to Reuters. If this takeover succeeds, it will take place in a difficult context for the video game market. After two exceptional years during the pandemic, this sector is experiencing a slight recession in 2022. A study by Ampere Analysis predicts a contraction of the global gaming market by 1.2%. The video game industry, however, thought it was immune to the recession, thanks to its inexpensive entertainment offer. The hangover looks painful.
Whose fault is it? The trio of major manufacturers, Sony, Microsoft and Nintendo, blame the shortage of semiconductors. Consequence: Nintendo consoles are “sold out in store, there are not enough stocks”, explains in a note the analyst Hideki Yasuda, of Toyo Securities. The situation is similar for its rivals.
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Despite this tension, none of these three companies have overhauled…
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