The NPD Group: Q3 Video Game Spending Hits Record High

Despite missing out on new-generation video game consoles coming out this week, new data from The NPD Group found that third-quarter (ended Sept. 30) consumer spending on video games hit an all-time quarterly high of $11.2 billion, which was up 24% from $9.03 billion in the previous-year period.

The tally was down $400 million, or 3.5%, from Q2, but up $300 million, or 2.7% from Q1 — with both quarters setting respective revenue records year-over-year.

After more than a year of declining revenue, the video game industry fortunes have skyrocketed in 2020 — largely due to stay-at-home gamers during the coronavirus pandemic.

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Console sales (excluding PlayStation 5, Xbox Series X and Series S) increased 16%, while sales of headsets, controls, gamepads and related accessories increased 35%.

Video game software sales shot up 24% to $10.04 billion from $8.38 billion driven by mobile and subscription spending, in addition to game downloads.

Top-selling games included Among Us, Animal Crossing: New Horizons, Call of Duty: Modern Warfare, Fortnite, Ghost of Tsushima, Madden NFL 21, Marvel’s Avengers, Minecraft, NBA 2K21, Paper Mario: The Origami King, Super Mario 3D All-Stars and Tony Hawk’s Pro Skater 1 + 2.

“We continue to see more video game players, playing for more hours, across more devices,” analyst Mat Piscatella said in a statement. “We can anticipate another record-breaking quarter in Q4, in large part due to PlayStation 5 and Xbox Series consoles entering the market with one of the fastest-selling consoles in U.S. history, the Nintendo Switch.”

NPD: September Video Game Revenue Increased 10%

Sales of video games, hardware and accessories continued their months-long increase as industry revenue in September increased 10% to $4.3 billion, from $3.9 billion in the previous-year period, according to new data from The NPD Group. Through nine months of the year, the video game market has increased 21% to $33.69 billion, from $27.84 billion at the same time last year.

Video game content spending increased 8% to $3.84 billion, from $3.55 billion. Year-to-date revenue is up 20% to $29.78 billion, from $24.98 billion.

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Accessories increased 30% to a record $191 million, from $46.9 million in the year-ago period. The segment was driven by sales of the Xbox Elite Series 2 Wireless Controller. Consumer spending on accessories was up 26% to a record $1.6 billion, from $1.27 billion.

Finally, Marvel’s Avengers and Super Mario 3D All-Stars knocked off Madden NFL 21 as the top-selling game titles.

 

NPD: Video Game Sales Jumped 37% in August

Video game sales remain on a roll with revenue from packaged media, digital, consoles and accessories up 37% in August to $3.33 billion, compared with $2.43 billion in the previous-year period, according to new data from The NPD Group. Through eight months, sales are $29.38 billion, up 23% from $23.88 billion in the same period a year ago.

Video games, compared with other forms of home entertainment, have resonated strongly with consumers during the coronavirus pandemic. After nearly two years of downward revenue trends, sales of games and hardware jumped 73% and 52%, respectively, in April and May. That was followed by increases of 26% and 32%, respectively, in June and July.

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In the absence of new-generation consoles, Nintendo Switch again led all hardware sales, helping the segment generate a record monthly tally of more than $229 million, up 37% from $167.1 million last year. For the year, hardware sales are up 23% to $2 billion from $1.62 billion.

Software sales increased 37% to $2.94 billion from $2.14 billion. For the year, revenue is up 22% to $25.9 billion, compared with $21.23 billion last year. Not surprisingly, with the NFL season underway, the top-selling new title in August was EA Sports’ Madden NFL 21 — a distinction the brand has held for 21 years straight.

Accessories revenue skyrocketed 42% to a monthly record of $166 million — driven by Sony PS4 DualShock 4 Wireless Controller Black. For the year, revenue is up 26% to an all-time high of $1.4 billion from $1.11 billion last year.