After a decade of turbulence for the US video game industry, the industry is beginning to see an improvement through various factors. Learn more about the current state of the market, essential elements, and US Players' relationship with video games.
Stability of the Video Game Market
Experienced Dramatic Ups and Downs
The past ten years have been marked by both growth and decline within the US video game market. It's an industry known for its ever-shifting tides, influenced by countless factors, from economic conditions to technological advancements. These fluctuations have made it gaming an especially challenging space for businesses to navigate.
Fortunately, the market has found its footing in recent times. Hardware sales are rising, and blockbuster games are continuing to make waves. This newfound stability is a welcome development for industry stakeholders and gamers alike.
The availability of cutting-edge gaming hardware is a driving force, especially after the downturn that came with difficulties from the recent pandemic. As technology is always evolving, gamers similarly are always eagerly awaiting the next generation of consoles and PCs. According to Circana (formerly The NPD Group and IRI), sales of new hardware products accounted for $7 billion of the $57 billion in total video game spending in the US market over the past year, 19% higher than the same period a year ago.
PlayStation 5 sales have especially been strong over the past year, as its supply noticeably improved since beginning in July 2022. The Nintendo Switch, despite all expectations, has also continued to perform strongly in 2023, no doubt in part helped by the release of The Legend of Zelda: Tears of the Kingdom.
Accessories also helped with the sales in gaming spending. Headset sales spiked in 2020 as consumers worked and learned from home and have continued to grow in 2023, as new consoles have become more readily available and older headsets reach the end of their lifespan. Headset sales are up 2% year-to-date in 2023, again driven by new console availability and replacement purchasing.
Digital Full Game Download As Biggest Contributor of Content Performance for 2023
This year, digital premium full-game downloads have significantly contributed to content performance. Sales of new blockbuster releases have offset mobile declines and a slight dip in digital add-on content spending. Subscription spending has plateaued in recent months, likely due to a combination of factors such as subscription fatigue, less disposable income, slow mass market adoption of cloud gaming, and a strong slate of new premium releases.
According to Circana, the top 20 games in sales for the 2023 Year-to-Date ending May has Hogwarts Legacy at the top, followed by Legend of Zelda: Tears of the Kingdom and Diablo 4. Of course, since May, there have been several major releases, each seemingly outdoing the other in sales in succession, so this list may no longer be fully accurate.
US Players' Relationship With the Gaming Industry
Video games are popular among Americans of all ages. According to the Entertainment Software Association (ESA), 65% of all Americans play video games at least one hour a week. Of those players, 76% of those are children under the age of 18. There is a near-equal ratio of male and female players.
Readers of this website may already know, but video games offer a variety of benefits. Many players agree that video games give the most value for their money when compared to TV or movies. Video games can also provide mental stimulation, stress relief, and joy. They can expand players' social circles, introduce new friends and relationships, and help them stay connected to friends and family. Sometimes, video games can lead to meeting a good friend, spouse, or significant other.
Video games are a universal need for kids and adults in today’s generation. They can build community, keep minds sharp, and unite people. Embracing the power of games can unlock our extraordinary potential, transforming lives and the world.
Sources:
Mat Piscatella Circana Full Media Release
2023 Essential Facts about the US Video Game Industry
