Consumer spending on video games fell 13% in the second quarter compared to the same period a year earlier, accelerating year-over-year declines as the industry battles difficult comparisons to a pandemic 2021 and struggles to resolve supply-chain issues amidst a shock to entertainment consumers from inflation.
According to data from NPD Group’s Q2 2022 Games Market Dynamics U.S. report, total spending on video games for the quarter was $12.35 billion. This was another quarter with broad decreases, and mobile again played a significant role in this decline. For the period, expenditure on non-mobile subscription content was the only category to display growth.
According to Sensor Tower, mobile spending decreased by 12 percent from the same period in 2021.
According to Randy Nelson of Sensor Tower, the current economic climate has undoubtedly contributed to a more accelerated decline. “Our projections foresaw a downward trend in mobile spending as life in the U.S. began its return to a new normal and consumers had fewer opportunities to engage with these titles,” Nelson said. However, it has increased since before the pandemic.
Sales of hardware decreased by 1% from the previous year, while those of accessories plummeted by 11%. Nintendo Switch (OTCPK:NTDOY) led the quarter in hardware unit sales. Still, the PlayStation 5 dominated the quarter in dollar sales (NYSE:SONY).
The sales of content decreased 13% to $10.97B.
The top selling and most popular games across all platforms are:
Among Us, Angry Birds 2, Bingo Blitz (PLTK), Call of Duty: Warzone (NASDAQ:ATVI), Candy Crush Saga (ATVI), Candy Crush Soda Saga (ATVI), Clash of Clans (OTCPK:TCEHY), Coin Master, Diablo Immortal (ATVI), Elden Ring (OTCPK:NCBDY)
Continuation
Evony: The King’s Return, Fortnite (Epic/OTCPK:TCEHY), Grand Theft Auto V (TTWO), Homescapes, Kirby and the Forgotten Land (OTCPK:NTDOY), Lego Star Wars: The Skywalker Saga (WBD), Madden NFL 22 (EA), Mario Kart 8 (OTCPK:NTDOY), Minecraft, MLB The Show 22 (SONY), Pokémon GO (OTCPK:NTDOY), Roblox (RBLX), Royal Match, The Sims 4 (EA) and State of Survival.
Related tickers: (OTCPK:NTDOY), SONY, (NASDAQ:MSFT), HEAR, LOGI, CRSR, EA, ATVI, TTWO, WBD, (OTCPK:UBSFY), (OTCPK:NCBDY), (OTCPK:SQNNY), (OTCPK:CCOEY), (OTCPK:SGAMY), SKLZ, SE, NTES, (OTCPK:TCEHY), RBLX.
Retail Stock: GME.
ETFs: NERD, ESPO, and GAMR
First-quarter consumer gaming expenditure was down 8% from the same period last year.
Featured Image: Megapixl © Vadymvdrobot
