A new report confirms the global gaming market saw a massive total drop of over $8 billion in 2022 from year-over-year averages.

The new report (via Newzoo) notes the drop in overall revenue isn’t cause for concern, as the previous two years were well above what they had been tracking by roughly $43 billion.

The primary reasons for the drop in revenue come from the recession, where people have less disposable income to use on luxury products such as video games.

It’s also viewed as a bit of a “correction” by Newzoo seeing as 2020 and 2021 were massive years due to the Coronavirus pandemic, as well as the lockdowns which greatly increased demand in the market.

When it comes to the biggest losers for the gaming industry, mobile leads losses with a drop of 6.4% and console gaming is right behind them with a drop of 4.2%. Interestingly, PC gaming did not share this fate and actually increased revenue, albeit very slightly with a gain of 0.5%.

The drop in revenue could be felt among certain companies as we’ve reported here through the year. For example, Capcom, one of the biggest game publishers in the world, suffered a revenue drop of roughly 50% compared to the previous year.

As Newzoo states, this likely isn’t much cause for concern as the market tries to return to a sense of normalcy while also battling recession and inflation concerns. It will be interesting to see what 2023 will bring.