Take-Two CEO thinks computer game market will rebound by end of 2023

While financial experts argument whether the U.S. remains in an economic downturn, Strauss Zelnick, CEO of Take-Two Interactive Software, states that he believes we’re in the thick of one.

“What we’re seeing now … is some slowness that we believe is driven by the overall economy,” Zelnick informed Fortune. “And while the experts argue about what is and isn’t a recession, from the point of view of a consumer-facing company like Take-Two, we’re already in a recession.”

Take-Two, which just recently finished its merger with Zynga, reported a financial very first quarter loss of $104 million late Monday, with non-GAAP incomes of 71 cents per share, compared to expectations of 87 cents. It was the most recent computer game publisher to report a slowing market after a duration of mostly unattended growth.

During the heart of the pandemic, couple of markets saw explosive development on the very same scale as computer game. People caught in your home, tired with streaming services, utilized video games to engage with pals and promote their minds. In 2021, the market set a sales record, taking in $60.4 billion, according to The NPD Group.

But sales started to plunge in January—and by the end of June, costs on computer game in the U.S. was 10% behind in 2015’s speed.

Zelnick states that’s not completely unexpected, as the speed of development was unsustainable. But financial conditions have actually made things even worse.

“What has gone on, of late, in the markets reflects what I said early in the pandemic which was that we were seeing enhanced demand, with people sheltered at home, and we expected the post-pandemic demand would be lower than the pandemic demand, but higher than the pre-pandemic demand. And I think that has proven to be the case,” he states. “However, what we’re seeing now … is some slowness that we believe is driven by the overall economy.”

Zelnick, however, states he doesn’t anticipate the slump to be a continual one. By completion of next year, he states, he anticipates the computer game market to have actually righted itself.

“I don’t know how long it will last,” he states. “I think by the end of 2023, we’ll be in fine shape as an industry and as the overall economy. Of course, I can’t call what will happen between now and the end of 2023, but I’m pretty confident we’ll be back to normal by [then].”

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