Is the gaming industry heading for a slump?

STORY: Nvidia is the latest company to warn that a gaming slowdown is hitting its bottom line

The gaming industry has largely been considered recession-proof

But it's beginning to face setbacks as consumers weigh discretionary purchases

Nvidia says Q2 revenue will be down 19% from Q1 on weakness in its gaming business

Source: IBES data from Refinitiv

Analysts had estimated gaming would contribute $3.12bn to the chip maker’s revenue

Source: Nvidia

But preliminary gaming unit revenue, which includes high-end graphic cards, declined 44% from Q1 to $2.04bn

Analysts say part of the drop also likely includes chips sold to the crypto market, which has been weak

Xbox-maker Microsoft reported a slump in gaming revenue in July

And PlayStation-maker Sony recently trimmed its forecast

Sony pointed to easing restrictions and waning interest due to a lack of new games

Intel Corp and Qualcomm have also forecast weak sales of phones and computers