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Impact of the COVID-19 pandemic on the video game industry

Impact of COVID-19

  • 28 min read
  • 13 chapters

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Through COVID-19 pandemic, State of emergency and SARS-CoV-2 Delta variant

The industry did experience some direct negative effects in the short term also. Many games were delayed by logistical complications during the transition to remote working. Social gathering restrictions had a major impact on in-person events- notably the discontinuation of E3. It also greatly affected Esports, which were more reliant on in-person events than the rest of the industry. The launch of the ninth generation of consoles took place as planned in late 2020, but was marred by stock availability from supply chain issues until 2023.

Overview

In contrast to many other economic sectors that were drastically affected by the pandemic restrictions, the video game industry was more resilient. Most video game developers, publishers, and operators were able to maintain operations with employees remote working to sustain game development and digital releases, though some productivity issues arose. With many people globally at home and unable to work, online gaming observed record numbers of players during the pandemic as a popular activity to counter physical distancing for society, a practice recommended by the World Health Organization that helped boost revenues for many companies in the gaming industry. However, a 2025 meta-analysis of self-reported player data found that the overall increase in gaming time compared with pre-pandemic levels was small, with the largest surge occurring in the second quarter of 2020 and being more pronounced in Europe than in Asia.

There were negative impacts on the industry, notably with major trade events cancelled or postponed which may have impacted relationships between the smaller developers and publishers. This has particularly impacted indie developers who typically use these events for face-to-face meetings with potential partners to gain funding and publishing support, and caused them to have to delay or cancel projects. Many esport leagues had to alter plans for their games, transitioning from live events to remote play or cancellation altogether. Portions of the sector that relied on physical products, such as retail stores and peripheral makers, as well as those dependent on in-person activities such as quality assurance through playtesting, ratings evaluation, and marketing, also struggled with global stay-at-home orders.

As the origin of the pandemic, China was expected to limit the supply chains for electronics. It did not impact plans for Microsoft and Sony to release the Xbox Series X and PlayStation 5 respectively in fall 2020, though both consoles suffered from stock availability issues early on.

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