After Sony Group Corp (NYSE:SONY) issued a profit warning on weaker PlayStation game sales, it has become evident the video gaming sector has taken a brutal hit post-pandemic.
The electronics and information technology provider revised its profit forecast down by 16% for its gaming business, according to Reuters.
It blamed waning consumer interest due to a lack of new games and an easing of COVID-19 constraints, which in turn has dampened interest in stay-at-home activities such as playing Elden Ring or Grand Tourismo 7.
"The growth of the overall game market has decelerated as opportunities to go out have increased following a decline in COVID infections," Hiroki Totoki, chief financial officer, said.
Sony's operating profit fell 37% in the financial first quarter, while the number of PS5 consoles shipped rose just 4% to 2.4mln.
Its software sales sank 26% and monthly active PlayStation Network users declined 3% to 102mln, but its hardware sales rose ever so slightly.
It isn't just Sony that has been struggling since the world has returned to normality and people have started venturing out again.
Microsoft Corp recently reported an 11% drop in Xbox hardware sales, a 6% dip in Xbox content and services revenue and a 7% decline in overall gaming sales.