'Some of the drivers of the decline include the return of experiential spending, higher prices in everyday spending categories such as food and fuel, the uncertain supply of video game console hardware and certain accessories such as gamepads, and a lighter release slate of games, among others,' explained NPD game director Mat Piscatella back in July, when NPD forecast a 8.7% decline in the U.S. A number of high-profile console and PC games have also suffered from delays this year, setting up a return to growth in 2023. For one, consumers are spending less on gaming due to inflation increasing the price of everyday goods.

mobile game revenue will surpass 2021 levels, worsening headwinds have firmly shifted the conversation away from the question of by how much.”Ī confluence of factors has created a particularly difficult time for game developers, and not just mobile ones. “While there is still a decent chance this year’s U.S. continues to decline as consumers contend with both economic uncertainties and a new post-pandemic normal,” said Sensor Tower gaming insights lead Dennis Yeh last week. But this year's decline marks a surprising downturn for mobile. Mobile gaming has typically offset the losses in console and PC gaming and has been the largest and fastest-growing sector in the industry for years. It extends beyond Game Pass and cloud gaming, too, and also includes integrations for Microsoft Teams, Windows 365, and Office apps on the Quest platform. The partnership between the two tech giants was announced Tuesday at the Meta Connect developer conference keynote, where CEO Mark Zuckerberg detailed the company's new $1,500 Quest Pro headset and scores of other product updates, new features, and far-out plans related to its metaverse ambitions. The integration doesn't have a planned release date yet, but it will be available to subscribers of Microsoft's Xbox Game Pass Ultimate subscription, which costs $15 a month and includes access to Xbox Cloud Gaming. Using its cloud gaming technology, Microsoft says it will let VR users stream Xbox games to a virtual screen inside of a virtual environment rendered by the Quest, similar to how you might watch a livestream, Netflix, or other 2D content in VR. Microsoft's latest platform for pushing Xbox gaming is an unconventional one: Meta's Quest 2 VR headset.

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