Regulations in China and the decline of Fortnite will cause the first fall of video games in 13 years



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The video game industry is super lucrative. Video games confirm this as Fortnite: Battle Royale, which despite having billed for free in 2018 about 3 billion dollars. O Red Dead Redemption 2, whose revenues have surpassed many hollywooden tanks, as we have here.

In addition, the tail wind that the boat receives gamer I would stop blowing. A market analyst predicts that industry revenue will fall for the first time in 13 years.

The empire falls?

The publication Bloomberg reflects the considerations of Pelham Smithers, head of a British market research firm, who points out that in 2019 the revenues of the video game industry will fall by 1%. In this way, the value will be about 136.5 billion dollars.

The analyst points out three fundamental factors first segment decline gamer in more than a decade. On the one hand, it refers to the expected shortage of major hits for consoles. And he says so the surviving titles, such as Fortnite and PUBG, will no longer generate as much interest between players.

But the most powerful argument for justifying declining incomes is related regulations governing China. Since the end of 2018, they have implemented a mechanism to prevent the massive distribution of video games in this market, the most voluminous in the world. Asian giant authorities have formed a committee that reviews video game content to approve or disapprove the distribution of video games. Only in December last year, he rejected 11 titles out of a total of 20 revised.

These regulations led to the decision of many companies in the sector not to launch their games in that gigantic market. A movement that, consequently, will negatively impact the industry that has not suffered falls since 1995 to this part.

Smithers, who according to the above-mentioned source analyzes the industry gamer since the 80's and is a fan of e-sports , adds that the End-of-cycle consoles such as the Xbox One and PS4 will also have influence on the bad 2019 for the sector. However, this negative influence will be disrupted when developers submit their new platforms.

Besides that, the "light at the end of the tunnel" would be courtesy of virtual reality. According to the expert, revenues related to this technology will double from 4 billion 2018 to 8 billion by 2020. This will be a benefit for the video game industry.

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