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Gaming tapers off post-pandemic as players return to the real world

Companies across the industry have reported weakening sales and player engagement in recent months

Gaming companies have been hit with weakening sales and engagement in recent months, as players returned to real-world pursuits post-pandemic and began cutting back on their spending amid a cost of living crisis.

Console producers, video game publishers and gaming chipmakers across the industry have reported a fall in demand in the latest quarter, challenging the belief that gaming is one of the most recession-proof forms of entertainment.

The slowdown comes after the sector saw a surge in demand and bumper profits during the pandemic, as global lockdowns drove a spike in consumers’ appetite for virtual entertainment and which, in turn, saw dealmaking rise sharply within the industry.

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