US Video Game Spending Dropped Again in Q3

November 29, 2022

This article is included in these additional categories:

Cross-Media & Traditional | Customer-Centric | Spending Trends | Videogames

Total US consumer spending on the video game industry grew by 8% year-over-year in 2021, but it looks less and less likely that this year will also end in growth. The latest data from The NPD Group indicates that video game spending fell by 5% year-over-year in Q3, following a 13% drop in Q2 and an 8% decrease in Q1.

Overall video game spending totaled $12.34 billion for the quarter, essentially flat from Q2’s $12.35 billion but down 5% from Q3 2021. Content spending was down by 7% year-over-year to $10.64 billion, and also trailed the ~$11 billion mark from Q2. Hardware spending grew by 16% year-over-year in Q3 after dipping by 1% in Q2, while Accessories spend fell by 12% after an 11% decline in Q2.

The biggest contributors to the drop in spending this quarter were consoles and portable content.

US consumer spend in mobile games was down by 9% year-over-year, per Sensor Tower data, following a Q2 report that in a significant milestone, more than half (50.3%) of spending on the US App Store in June came from non-games, the first time non-game apps have passed the majority threshold. According to Sensor Tower, “While there is still a decent chance this year’s U.S. mobile game revenue will surpass 2021 levels, worsening headwinds have firmly shifted the conversation away from the question of by how much.”

For more, read The NPD Group’s release here.


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