During an earnings call on August 8, Take-Two CEO Strauss Zelnick said, “We’re seeing now the decline in consumer spending and increase in inflation will have an impact on the industry. You’ve seen it from our report today and from our competitors’ reports as well.” Take-Two’s game properties include Rockstar and 2K studios, makers of hits like “Grand Theft Auto V," Red Dead Redemption II" and 2K’s popular lineup of sports titles.
Gaming titans Nintendo, Microsoft and Sony all reported declining revenue and missed earnings expectations in late July or early August. Part of the reason, gaming companies say, is a weakened supply chain, still affected by pandemic-related lockdowns and the challenges of delivering consoles to stores. Another aspect is that much of the world has now reopened and isn’t looking online to
forge social connections.
In August, Meta, formerly known as Facebook, raised the price of its Quest 2 VR headset, from $299 to $399.
“The costs to make and ship our products have been on the rise,” Bryan Pope, a Meta spokesperson, said in a statement. “By adjusting the price of Quest 2, we can continue to grow our investment in groundbreaking research and new product development.”
Pope said that Meta would continue to bet big on gaming, as it was one of the most popular content categories on the Quest 2.
The Washington Post reached out to over a dozen gaming companies for comment on how they plan to weather a possible recession. Hoyoverse, Electronic Arts, Take-Two, Ubisoft, Devolver Digital, Annapurna, Square Enix, CD Projekt Red, Sega declined to comment. Others, including Sony and Xbox, did not respond.