Video Game Sales Up 1% in USA by 2025
- The US video game market experienced fluctuations in 2023, with overall consumer spending declining, though digital sales remained robust.
- Circana is a leading provider of market intelligence for consumer goods, including the video game industry.
- In 2023,total US video game spending reached $55.3 billion, a 7% decrease compared to $59.3 billion in 2022.
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The US video game market experienced fluctuations in 2023, with overall consumer spending declining, though digital sales remained robust. This analysis, based on data from Circana (formerly NPD Group) and verified by other industry reports, details key trends and performance indicators as of January 23, 2024.Further updates are being monitored for 2024 and beyond.
Circana (formerly NPD Group) and US Video Game Market Overview
Table of Contents
Circana is a leading provider of market intelligence for consumer goods, including the video game industry. Their reports provide data-driven insights into consumer behavior and market trends.
In 2023,total US video game spending reached $55.3 billion, a 7% decrease compared to $59.3 billion in 2022. Despite the overall decline, digital sales continued to be a notable driver of revenue.
Example: Circana reported that digital sales accounted for 73% of total video game spending in 2023,demonstrating a continued shift in consumer purchasing habits.
Key Findings from the 2023 Report
- Total consumer spending on video games, hardware, and accessories decreased by 7% to $55.3 billion.
- Digital sales remained strong, representing 73% of total spending.
- Hardware sales declined considerably, impacted by the end of the console generation.
Hardware Sales Performance
hardware sales in the US declined by 23% in 2023, totaling $4.3 billion. This decrease was largely attributed to the maturing console cycle and a slowdown in demand for gaming PCs.
Detail: The PlayStation 5 and Xbox Series X/S continued to be the best-selling consoles, but sales were constrained by supply chain issues and limited availability throughout much of the year. Nintendo Switch sales also experienced a decline, despite remaining a popular choice for consumers.
Example: PlayStation 5 sales, while leading the market, saw a 14% decrease in revenue compared to 2022, according to Circana data.
Software Sales Trends
Software sales, including physical and digital games, decreased by 5% in 2023, reaching $49.4 billion. This decline was influenced by a lack of blockbuster releases compared to 2022.
Detail: Digital software sales continued to grow, offsetting some of the decline in physical sales. Subscription services, such as Xbox Game Pass and PlayStation Plus, also contributed to revenue.
Example: Hogwarts Legacy was the best-selling game of 2023, demonstrating the continued popularity of open-world action RPGs.
Accessories and Spending
Spending on video game accessories decreased by 13% in 2023, totaling $1.3 billion. This decline reflects a slowdown in demand for gaming peripherals and accessories.
Detail: the market for gaming headsets, controllers, and other accessories remained competitive, with several major brands vying for market share.
Example: Sales of virtual reality (VR) headsets remained relatively niche,contributing a small percentage to overall accessory spending.
Breaking News Check (as of 2024/01/23 10:22:29)
As of January 23, 2024, there are no major breaking news events significantly altering the 2023 US video game market data reported by Circana. Though,ongoing monitoring of 2024 sales figures and industry announcements