Channels with Peter Kafka Matthew Ball: Why the games business is broken
28 snips
Feb 19, 2025 Matthew Ball, an investor and analyst specializing in the video game industry, dives into the surprising downturn currently plaguing gaming, dispelling myths of relentless growth. He discusses how changing consumer habits, especially the popularity of short-form content, have led to decreased engagement in traditional gaming. The conversation also highlights obstacles in mobile gaming post-Apple’s privacy shifts and the complexities of augmented reality's role in the future of entertainment—raising questions about compelling use cases needed for AR adoption.
AI Snips
Chapters
Transcript
Episode notes
Gaming Industry Stagnation
- The video game industry, expected to grow continuously, has stagnated for several years.
- This stagnation is surprising given gaming's competition with other media.
Declining Player Base
- Fewer people in the US play video games weekly now than in 2019.
- This decline signals more than a post-pandemic readjustment.
Mobile Game Downloads Decline
- US mobile game downloads are at a decade low, despite increased smartphone ownership.
- This drop coincides with TikTok's rise, suggesting a shift in user attention.