Tech & Innovation

America's video game boom is stalling out

The industry now finds itself in an unusual position of selling plenty of devices to play games on — but struggling to sell the games themselves

ByJackie Snow

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The video game industry generates almost $189 billion in annual revenue and reaches 3.6 billion players worldwide, dwarfing Hollywood's box office take and rivaling the global music industry. For a generation of developers, designers, and artists, gaming represents not just entertainment but a viable creative career, a chance to build worlds that millions will inhabit.

That growth story is now stalling out.

New data from market research firm Circana reveals that 63% of U.S. gamers now purchase two games or fewer per year, and a third of American gamers don't buy any new games at all in a typical 12-month period.

The Nintendo Switch 2 is smashing records and hardware sales are up 20% this year, yet Americans have largely stopped buying the software that developers pour years of their lives into........

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