Impact of the COVID-19 pandemic on the video game industry: History and Key Facts

The video game industry was substantially impacted by the COVID-19 pandemic, as most industries were. The restrictions to social events and movement globally led to a sudden interest in gaming worldwide. This was credited with bolstering the success of many games, particularly games that launched in the March 2020 window, when gatherings were first restricted in many countries. A "gold rush" of video game acquisitions and investment ensued, marked by multi-billion dollar studio deals such as Microsoft's $75bn acquisition of Activision. However, this would prove unsustainable as the rapid pandemic-era growth was temporary. Major layoffs occurred when restrictions began to ease in 2022, and it was clear that the rapid industry expansion would not be sustained.

The industry did experience some direct negative effects in the short term also. Many games were delayed by logistical complications during the transition to remote working. Social gathering restrictions had a major impact on in-person events- notably the discontinuation of E3. It also greatly affected Esports, which were more reliant on in-person events than the rest of the industry. The launch of the ninth generation of consoles took place as planned in late 2020, but was marred by stock availability from supply chain issues until 2023.

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