There seem to be many good theories as to why the gaming industry finds itself in its current predicament. Perhaps some jobs are being replaced by AI, perhaps general market conditions have worsened due to macroeconomic pressures, or perhaps... it's something else entirely? On several occasions, certain economic experts have pointed toward COVID-19, suggesting that far too much money was invested in the gaming industry during that period.
Specifically, former PlayStation boss Shuhei Yoshida stated in an interview with WhatCulture that it was actually a kind of illusion, a disservice to the industry:
"The shutdowns and layoffs and the cancellations are the result of these adjustments from the misjudgment that many companies made. I think it was super optimism of the time during Covid-19. The industry grew so much because [people] had to stay at home, and video games were the easiest and cheaper way to be entertained. So they saw this huge increase in growth of the industry, and many investors poured money into the sector, so these publishers over-hired, over-invested. They hired too many people. They invested in projects that they shouldn't have."
As mentioned, the answer is likely a combination of factors, but the question remains whether a significant part of the explanation can be traced all the way back to COVID-19. What do you think?