Rising prices, the lack of interesting titles and a shift in consumer choices are all reasons why the gaming industry are facing a downturn in demand, raising questions about whether it will be able to sustain through an economic downturn.

Just like tech companies have had lowered revenue in the face of a waning pandemic, the gaming industry is seeing challenges for the first time in two years. The evidence presents itself in the revenue growth of Roblox (one of the most popular online gaming platforms). The companies revenue growth went from 83% two quarters ago, to just 30% in the latest. 

According to Jesse Divnich, senior vice president at Interpret, a videogame market research firm who spoke to Reuters, spending had shifted away from indoor activities and has led consumers to “spending more on experiences outside of the home”. He also said that a growing job market and aggressive inflation were to blame. 

Analytics firm NPD found that consumers in the US fell by 11% in June, and expects a decline of 8.7% by the end of this year. 

Console makers have not been immune to the shifting winds of the market either. Microsoft took a hit to its gaming revenue as Xbox posted lower sales. In the East, Sony has cut its revenue forecast for the Playstation, which continues to struggle with supply chain and distribution issues while Nintendo posted lower sales. 

Alongside the falling spending on videogames, gaming graphic card makers are also likely to worry. Nvidia saw a sequential drop of 19% over the last quarters revenue.

However, that is likely to bode well for gaming enthusiasts and hobbyists. Recently the company announced discounts to its 3000 series, going nearly as low as 15%. Additonally, with the crypto currency implosion, crypto miners are selling off their graphic cards at nearly throwaway prices as the scene shifts towards proof of stake protocols.