Global analyst and advisory service Omdia held an online webinar, featuring a panel of five team members, to discuss 10 key questions in the gaming industry currently. The topics ranged from layoffs to AI in game development to the rise of third-party app stores, covering all the hot issues in the industry.
The webinar addressed the following ten questions:
- Reasons behind the increase in industry layoffs.
- The impact of “Switch 2” on the market.
- Differences between this console generation and the previous one.
- Future of third-party mobile game stores.
- Effects of movies and shows based on game IP on Twitch audiences.
- Impact of recessions on the games market.
- Effects of games library subscriptions on game design.
- Potential of Apple Vision Pro in reviving the consumer VR market.
- Developers’ spending plans and trends.
- Potential of generative AI in revolutionizing games development.
For the mobile industry specifically:
Insights on layoffs
The research director at Omdia, Dom Tait, linked the increase in layoffs to various factors such as escalating budgets for triple-A games and the overestimation of post-pandemic growth. The industry experienced a decline in revenue in 2022 and a modest increase in 2023, indicating the need for recalibration. The gaming market is influenced by broader economic conditions, as observed after the Sendai Earthquake recession in Japan, as stated by senior principal analyst Steve Bailey.
Live ops, expenses, and AI trends
Based on Omdia’s developer survey, principal analyst Liam Deane highlighted developers’ cautious spending behavior and the increasing adoption of generative AI. Despite challenging circumstances, the market for tech products and solutions is expected to grow. Deane noted concerns amongst developers regarding job losses due to the implementation of generative AI technology.
Exploring alternatives
While senior principal analyst George Jijiashvili focused on console gaming, senior analyst James McWhirter discussed the rise of third-party mobile app stores and regulatory changes like the EU’s Digital Marketing Act. The evolving landscape of app stores and the varying consumer spending patterns were highlighted, with the future of third-party stores remaining uncertain.
Watch the full video here to delve deeper into the insights shared during the webinar.
