NEWS: Ampère’s analyst report: video game industry expected to decline 1.2% in 2022 – Forum
The article fails to mention that right after those layoffs, the company’s CEO, Matt Furlong, made a big announcement about launching an NFT marketplace, which they’ve “allegedly” been working on for “months.”
All I see is a desperate attempt to trick gullible investors into bailing them out once again …
Gamestop has been a dying model that has managed to hang on by offering all sorts of worn-out lifelines. The whole short-selling drama of the last year was just a bunch of people with money trying to make their case, and they picked one of the worst kids for their crusade. It’s earned them the revitalized notoriety needed to achieve something like this, for what little good it will ultimately do them.
As for the broader stock, the 1.2% decline is a blow. As the article points out, the industry has grown quite aggressively, largely due to the pandemic, and likely would have grown more had it been able to better manage supply issues. However, improvements in supply issues at the end of the worst days of the pandemic will likely be met with headwinds of depressed aggregate demand as people are back at work/school and not as interested by games or have time for them as they had during the pandemic, in addition to a question of how much of this pent-up demand that has not been realized due to supply constraints, will ultimately remain for slack of the offer. If “you” (generic potential customer) haven’t been able to get a PS5 for a year now, at what point do “you” just move on and are no longer interested in buying this console and related games?
My point being that a decline was to be expected, given all that the period has picked up. And a rebound is also expected given all that the new period is set to capture. But this new growth will probably not be very significant. This last and the next two years are more or less a rebalancing of where they would have been absent in the pandemic.