How COVID-19 Is Affecting the Video Games Industry

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At the time of writing, roughly half of the world’s population is under some form of lockdown to prevent the spread of COVID-19. Billions of people are currently living with various restrictions in place. In the UK, for example, we’re meant to stay in the house as much as possible, play free casino games no download, only leaving to get essential supplies, go to work (if classed as a key worker) or help relatives. When out of the house, we have to practise social distancing at all times and not come into close contact with anyone else. So far, COVID-19 has robbed many of us of the ability to go about our day-to-day lives and do normal, everyday things. With loads of us stuck indoors most of the time, it should come as no surprise that many are finding a new love for video games. Here’s a closer look at how the virus is having an impact on the video game industry.

More People Playing

To put it simply, loads more people are playing video games than before the virus came along and started spreading. People are bored having to spend so much time indoors unable to go out to work, socialise and enjoy leisure activities. A lot of people are curing their boredom by indulging in screen-based entertainment: watching regular TV, making the most of subscription-based streaming services (such as Netflix and Amazon Prime Video) and playing video games. In fact, there’s a lot more streaming going on than ever before, and there are concerns the internet’s infrastructure might not be able to handle it. 

If people aren’t playing games they’ve had lying around the house for games, maybe on older consoles and devices, they’re looking online for the latest and newest ones to try out instead. People want entertainment, and in these uncertain times especially, they want escapism. They want to be able to immerse themselves in something that’s enjoyable and fun – that’s exactly what video games are about. Many gamers are spending more time before gaming, while many people who weren’t really into games before are now devoting hours to them, keen for any sort of escape from the real world and the ongoing virus stories in the news. Not only are people playing video games more, but they’re also playing other types of game, such as online casino games (slots, card and table games, scratchcards and video poker) and even traditional board games. 

Cancellations

A positive effect COVID-19 is having on the video games industry is that it’s giving people more time and reason to play. However, the virus is still having some significant negative effects on the industry that may well go on to have long-lasting consequences. Thanks to the virus, all sorts of real-world events, meetings and social gatherings of any kind have been postponed or cancelled outright. Like any other industry, the video games one relies on all sorts of gatherings big and small in all sorts of countries to keep itself going. Yes, it’s an industry that’s all about screen-based entertainment, but there’s still a real-world aspect to the business. 

Events are very important because they bring people from all parts of the industry together – not only that, they also attract huge numbers of fans. Many smaller design companies rely on events to promote their games and strike publishing deals. Large companies also benefit from events, but they don’t necessarily rely on them as much. Still, these gatherings are vital for the industry because they forge connections and partnerships that help games reach the consumer. 

The world’s largest video game event is E3, also known as the Electronic Entertainment Expo. It’s held annually in Los Angeles and used to be for industry professionals only, though since 2017 it’s admitted members of the public. The 2019 event welcome some 66,100 people. The 2020 event, however, has been formally cancelled because of COVID-19. A virtual version is said to be in the works instead; however, this will unlikely be able to replicate the full, real-world event and everything it creates. 

There are many other video game industry events like E3 that are being cancelled. The Game Developers’ Conference, which is aimed specifically at developers, was scheduled to take place in March, but has been pulled. The cancellation of these key events that bring developers and publishers together is going to hit the independent companies looking for their big break the most. The knock-on effect could well be that in the next few years, fewer games by new developers and smaller companies are released.

Hardware

Another key area of the video game industry that COVID-19 is having an immediate impact on is the production of hardware. There’s a rise in demand for consoles right now, but the problem is that production has all but ground to a halt. A large percentage of video game consoles are made in China, from where COVID-19 originated. It should come as no surprise that there’s been quite a shortfall in production over the last few months, with the result that the demand for new consoles is now much greater than the supply. Thankfully, it seems that the virus has peaked in China, and things are beginning to return to some semblance of normality. People have slowly started returning to work, though it will be a while – most likely many months – before the levels of production return to what they were pre-virus. 

The production of yet-to-be-released consoles is also being affected. Sony’s PlayStation 5 is meant to be getting released in late 2020, while Microsoft’s Xbox Series X also has a scheduled release date of later this year. Both new consoles could well be delayed thanks to the supply chain being disrupted by COVID-19. The longer it takes for things to return to normal, the longer delays in getting these consoles to market may be. It wouldn’t be a surprise if both were put back to 2021.

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