According to the American Game Association’s Game Industry Outlook released in partnership with Peach Ratings, game executives remain optimistic about the current business situation, along with a neutral outlook on the future.
The overwhelming majority of game executives surveyed view the current business situation as good (42%) or good (55%), with 62% in good condition, 35% in good condition, 35% in good condition, 35% in good condition, and 35% in good condition from the first quarter. When asked about future business conditions, more than half expected the next three to six months to be similar (58%), while the rest were almost evenly divided among those who expected better or worse (net positive 3%).
“Significant expansion and record demand for legal and regulated gaming since the pandemic have allowed our members to continue to invest in our products and provide innovative entertainment options for American adults,” said Bill Miller, AGA’s president and CEO. “Game CEOs remain focused on delivering world-class entertainment options against the backdrop of widespread economic uncertainty.” 슬롯머신
Current Condition Index
The Current Conditions Index was measured at 100.6 and reflected a relatively modest 0.6% growth in casino gaming-related economic activity in the third quarter of 2023. As gaming revenue and employee wages are adjusted for inflation, the Current Conditions Index was adjusted due to continued high inflation through Q3 2023.
Future conditions index
The Future Conditions Index is 99.6, indicating that annual industrial economic activity is expected to decline slightly over the next six months. The forecast reflects Oxford Economics’ forecast that the U.S. economy will experience a modest recession starting in the fourth quarter of 2023. However, despite the expected slowdown in consumer spending, consumer survey results show that more than a third of adults expect to visit casinos over the next 12 months, consistent with last quarter results.
Gaming Executive Panel
Management’s views on future financial conditions are mixed, with overall expectations of improved balance sheet health over the next three to six months (net positive 26%) and increased pace of capital spending (net positive 24%), but overall expect revenue growth to decrease (net negative 13%) and access to credit is somewhat limited.
At the industry level, CEOs of game suppliers expect unit sales to increase by the end of the year, while many CEOs of operators plan to increase capital investment in food and beverage products.
- Casino operators expect an increase in the operating gaming sector (11% net positive), 67% more than typical food and beverage investments and 33% more than capital expenditures on typical gaming consoles.
- Game equipment manufacturers expect to see an increase in new or extended units (44% net positive), and sales of replacement units increase at the same rate.