Gaming industry with rising sales and falling margins
The global gaming industry grew in revenue in the first half of this year compared to the same period last year.
That's according to an analysis of the world's 26 largest gaming companies by EY-Parthenon, the strategy consulting arm of Ernst & Young, obtained by Deutsche Presse-Agentur.
According to the report, company sales rose 9.6 percent in the first six months of this year compared to the first half of 2022, to about 72.7 billion euros. The video games industry appears to be recovering from a growth dip following the Corona pandemic. In 2022, year-on-year growth had been just under five percent. In 2020, sales had still grown by 28 percent.
Setback in profitability
However, the industry suffered a setback in terms of profitability. The margin, for which operating profit is set in relation to sales, fell from 21.1 percent to 14 percent in the first half of the year.
"The latest industry figures for the games industry show light and shade: Revenue is on a stronger upward trend again, but profitability is not yet back on track to the levels we had during the Corona pandemic," said Jens Weber, partner and industry expert at EY-Parthenon, according to the release.
However, the profitability of the games providers is at a high level, especially in comparison to other industries, which makes the companies attractive to investors. "It will be exciting to see how the figures develop in the upcoming, traditionally strong phases of the industry in the fall and winter with numerous blockbuster games," says Weber. (SDA)
