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Video Game Industry Braces for Sluggish Growth in 2024 Amid Weak Console Sales

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Video Game Industry Braces for Sluggish Growth in 2024 Amid Weak Console Sales

The global video game market is expected to see modest growth in 2024, as weak console sales continue to impact the industry, according to a new report by market research firm Newzoo. The firm predicts the industry will grow by 2.1% year-over-year, reaching an estimated $187.7 billion.

This figure marks a slight downgrade from an earlier forecast in January, where Newzoo anticipated a 2.8% growth, with the industry reaching $189.3 billion in 2024. The revised outlook reflects ongoing challenges in the console market, which is expected to see a 1% decline in revenue this year.

Despite the sluggish growth, the U.S. and China remain dominant players in the global gaming landscape. Together, these two markets are projected to account for nearly half of all consumer spending on video games in 2024, with the U.S. generating $47 billion in sales and China close behind at $45 billion.

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While the anticipated 2.1% growth rate is an improvement from last year’s 0.6% increase, it pales in comparison to the rapid expansion seen during the height of the COVID-19 pandemic, when gaming saw a significant surge in popularity.

Michiel Buijsman, Newzoo’s principal games market analyst, noted that despite the expected sluggish performance in 2024, the industry is poised for a significant rebound in 2025. Buijsman predicts that the console market, in particular, will “return with a bang” next year, suggesting that the current downturn may be a temporary setback.

This outlook comes in the wake of Sony’s recent announcement that it sold 2.4 million units of its PlayStation 5 console in the first fiscal quarter, down from 3.3 million units sold during the same period last year. This decline in console sales has been a key factor in the tempered growth projections for the gaming industry in 2024.

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Escalating Tensions Between Banks and Tech Companies Over Online Fraud Liability in the UK

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Escalating Tensions Between Banks and Tech Companies Over Online Fraud Liability in the UK

Tensions are mounting between banks, payment firms, and social media platforms in the U.K. over the responsibility for compensating victims of online fraud. Starting from October 7, banks will be required to compensate individuals up to £85,000 if they fall victim to authorized push payment (APP) fraud—a type of scam where criminals manipulate people into transferring money to them.

Although the £85,000 limit is lower than the £415,000 initially proposed by the U.K.’s Payment Systems Regulator (PSR), it still represents a significant burden for banks and payment companies. Industry groups, such as the Payments Association, argued that the higher compensation figure would have been too costly for financial institutions to bear.

As mandatory fraud compensation takes effect, concerns are growing within the banking sector about whether they are being unfairly saddled with the financial cost of protecting consumers from fraud. The issue has sparked criticism from financial institutions like digital bank Revolut, which recently accused Meta, the parent company of Facebook, of not doing enough to combat fraud on its platforms.

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Revolut’s head of financial crime, Woody Malouf, argued that social media companies should share the financial burden of reimbursing fraud victims. Malouf said that by avoiding financial responsibility, platforms like Meta lack the incentive to implement stronger anti-fraud measures.

This conflict over fraud liability highlights the growing pressure on both financial institutions and tech companies to find solutions to the rising tide of online scams, as consumers continue to fall victim to fraud through digital channels.

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Judge Orders Google to Open Android App Store in Epic Games Case

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Judge Orders Google to Open Android App Store in Epic Games Case

A U.S. judge has issued a permanent injunction forcing Google to offer alternatives to its Google Play store on Android devices. This landmark ruling, part of Epic Games’ antitrust lawsuit against Google, means that the tech giant must allow other app stores to compete and access its Play Store catalog.

The decision comes as a major win for Epic Games, which initially sued Google in 2020, accusing the company of anti-competitive practices such as paying phone manufacturers to avoid developing rival app stores. Under the ruling, starting in November, Google will be restricted from:

  • Paying companies to launch apps exclusively on Google Play.
  • Preventing companies from creating competing app stores.
  • Requiring app makers to use Google Play Billing or preventing them from promoting cheaper pricing options on their websites.

The ruling could reshape the app market by allowing developers to bypass Google’s fees, which typically range from 15% to 30% of sales. This could result in developers keeping a larger share of the revenue from the estimated $124 billion consumers spent on apps in 2023.

In addition to these restrictions, a three-person committee will be established to monitor Google’s compliance with the order. This ruling sets a new precedent in app market competition, paving the way for more choices for consumers and app developers alike.

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Meta Forms Data-Sharing Alliance with UK Banks to Combat Fraud

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Meta Forms Data-Sharing Alliance with UK Banks to Combat Fraud

Meta, the parent company of Facebook, announced a new collaboration with two major UK banks, NatWest and Metro Bank, to tackle the rising issue of online scams. This initiative, part of Meta’s Fraud Intelligence Reciprocal Exchange (FIPE), aims to enhance fraud detection by allowing UK banks to share vital data directly with Meta. The goal is to identify and dismantle accounts involved in fraudulent activities.

The system has already seen significant success. For example, Meta claims it shut down 20,000 scam accounts linked to a network selling fake concert tickets in both the UK and the U.S., thanks to data provided by British banks.

Meta’s head of counter-fraud, Nathaniel Gleicher, emphasized the importance of collaboration between financial institutions and social media platforms, noting that such partnerships enable faster detection and removal of scam accounts.

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Meta’s existing policies already prohibit the promotion of financial fraud, including deceptive schemes such as loan scams and fake investment promises. However, this new collaboration represents a significant step in the ongoing fight against online financial crimes. Additional banks are expected to join the program soon, further expanding its reach.

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