I was about to say that I knew that COVID-19 caused video game sales to surge, and then crash, and there was over-hiring that had happened in response to those sales, but a third seems like an insanely high number.
Looking at WP, it sounds like the surge was actually that high...but for mobile OS games and console games, not PC, where the surge was much more muted. I also hadn't realized that mobile OS video game spending had become that much larger than PC spending.
https://en.wikipedia.org/wiki/2022%E2%80%932025_video_game_industry_layoffs
The first few months of the COVID-19 pandemic brought about a sharp increase in revenue for the gaming sector worldwide as people looked for indoor entertainment.[56] According to IDC, in 2020, revenue from mobile games climbed by 32.8% to $99.9 billion, while expenditure on digital PC and Mac games increased by 7.4% to $35.6 billion.[57] The amount spent on home console games increased significantly as well, reaching $42.9 billion, up 33.9%.[58][59]
In the ensuing years, this growing pattern abruptly stopped.[60] Revenue growth from mobile gaming fell by 15% in 2021, and then fell even further in 2022 and 2023, to -3.3% and -3.1%, respectively. Sales of PC and Mac games saw a brief rise of 8.7% in 2021, a drop of 1.4% in 2022, and a rebound of 2.1% in 2023.[61] Similarly, after a surge in 2020, console game spending plateaued in 2021 with growth at 0.7%, followed by a decline of 3.4% in 2022, before returning to growth at 5.9% in 2023.[59][62]
