Despite economic uncertainty, analysts from sources as diverse as the World Economic Forum and Morgan Stanley are suggesting that the gaming industry will maintain growth in 2023.

Analysts And Investors Think Consumers Will Keep Gaming – Even In A Recession 

According to a recent post by The World Economic Forum, the millions of consumers who used gaming to cope with the uncertainty and isolation of the pandemic have continued to game, now for enjoyment and as an integral part of their lifestyles in 2023.

“So many existing and new gamers splashed out on games, consoles, and other kit during the pandemic that the market expanded by 26% between 2019 and 2021,” the post reads. That’s driven investment in the industry and a predicted boon in 2023. “The game industry’s swimming in cash,” Professor Joost van Dreunen of New York University told The New York Times at the height of the boom. “It’s just raining money on these people, on these companies,” the article states. More than 650 gaming M&A or investment deals were announced or closed in the first six months of 2022, and gaming companies, such as Epic Games, raised billions on the strength of the market, according to recent research.

That tracks with a recent analysis from Morgan Stanley, which states that the gaming industry will likely continue to grow in 2023, even as many consumers face the prospect of a recession. According to the report, this has been a historical trend, and the firm believes this will continue.

“After a sluggish 2022, the video gaming industry is set to unlock new levels of growth next year as more high-budget, high-profile games and next-generation consoles hit the market,” the report reads.

New Content Will Drive Growth In 2023

Morgan Stanley believes that 2023 will likely be “an inflection year” for the gaming industry.  

“Video game development teams are seeing better productivity and have improved efficiency. At the same time, titles that were strategically pushed back are now looking more likely to launch in 2023,” stated Morgan Stanley research analyst Seyon Park. “We see an abundance of quality content as the single most important factor behind our expectations for a strong market recovery heading into the upcoming holiday season.”

That analysis echoes a Bloomberg report which states that the gaming industry’s 4.2 percent decline in growth compared to 2021 reflects the delays in sought-after gaming titles. However, that will change in 2023, the article states.

“Now, 2023 is absolutely stacked: Nintendo Co.’s The Legend of Zelda: Tears of the Kingdom, Electronic Arts Inc.’s Dead Space, Square Enix Holdings Co.’s Final Fantasy XVI, Activision Blizzard Inc.’s Diablo IV and others are due out this year,” the post reads. “The lineup of fresh releases will likely contribute to growth in consumer spending on games this year.”