Shulou(Shulou.com)11/24 Report--

Sina Science and Technology News Beijing time on August 10 morning news, it is reported that the quarterly results released by US game platform company Roblox on Tuesday did not meet market expectations, indicating once again that the game industry began to face anaemic growth after the boom triggered by the epidemic. Affected by the news, the stock tumbled 19% in after-hours trading.

Recently, the entire game industry, from game console makers to chipmakers to video game publishers, has been warning of a slowdown. This happens because high inflation in the US has had an impact on discretionary spending, challenging the recession-proof nature of the gaming industry.

California-based Roblox, known for games such as Prison break and MeepCity, had net bookings of $639.9 million in the second quarter, compared with $665.5 million in the same period last year. Analysts expect the company's second-quarter net bookings to be $644.4 million, according to Refinitiv.

"We have found that changes in consumer discretionary spending have had an impact on the video game industry as a whole. The impact on free games and mobile games seems particularly pronounced." Said Corey Barrett, director of TMT research at M Science.

Demand for games soared during the outbreak, but demand across the industry began to shrink slowly as risk controls were lifted and people returned to look for other forms of entertainment.

Not only are video game publishers Take-Two and EA giving weak annual sales forecasts, but chipmaker Nvidia warned on Monday that its revenue in the second quarter would fall because of weakness in the games business.

Last month, Microsoft, a maker of Xbox consoles, reported a sharp drop in its game revenue, and Sony, maker of PlayStation consoles, cut its performance forecast because of reduced consumer interest.

On an adjusted basis, Roblox lost 30 cents a share in the quarter, while analysts expected a loss of 21 cents a share.

Bookings in July increased by 8% to 10% year-on-year, and the number of daily active users increased by 26%.

Roblox shares fell 3.17% to close at $47.35 in regular trading on the New York Stock Exchange on Tuesday. In after-hours trading, the stock continued its decline and eventually tumbled 17.04% to $39.28. The stock has fallen more than 50 per cent so far this year.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.