The U.S. video game industry is facing a boss level that’s proving hard to beat: declining sales fueled by availability issues and consumer uncertainty.
According to new data from The NPD Group, consumer spending on video game products slipped 13% in the second quarter of 2022 to $12.35 billion. With availability issues still plaguing consumers trying to get their hands on the Xbox Series S|X, PlayStation 5, and Nintendo Switch, hardware sales declined 1% while accessories dipped 11%.
The bigger declines were felt in content and mobile gaming with a 13% decrease in overall consumer spending on content and a 12% dip in spending on mobile games.
“Higher prices in everyday spending categories such as food and gas, the return of experiential spending such as travel and attending live events, a lighter release slate of new games, and continued new generation console hardware supply constraints were all likely contributors to the decline seen in the second quarter,” says Mat Piscatella, games industry analyst at The NPD Group. “After a period of sustained growth, consumer spending continues to trend above pre-pandemic levels. However, unpredictable and quickly changing conditions may continue to impact the market in unexpected ways in the coming quarters.”
The Nintendo Switch continues to dominate hardware sales while Sony’s PlayStation 5 once again generated the highest dollar sales for the quarter.
Several toy-centric video game titles continue to chart among the bestselling and most-played games across all platforms, with Among Us, Call of Duty: Warzone, Fortnite, LEGO Star Wars: The Skywalker Saga, Mario Kart 8, Minecraft, Pokémon GO, and Roblox capturing the attention — and dollars — of players.
