While consumer spending on video games decreased by 8% between January and March of this year compared to the same period the previous year, Xbox hardware enjoyed a significant increase in dollar sales in the United States.
The information comes from The NPD Group’s consumer expenditure report for Q1 2022, which shows that, despite a 15% decline in hardware spending compared to Q1 2021, Xbox hardware enjoyed a stunning 92 percent growth in total cash sales. Although greater console availability for both the Xbox Series X and the less priced Xbox Series S—as well as fewer supply chain issues—could potentially be a role, the report cites no specific reason for the large boost in dollar sales for Xbox. Meanwhile, the Nintendo Switch was the best-selling system in terms of units sold over the same period.
In the first quarter of 2022, total spending on games in the United States was $13.9 billion, but mobile gaming had the biggest dip in spending, down 10% from the same period last year. While mobile expenditure was down, The NPD notes that several of the platform’s most popular games continued to gain players in comparison to last year and even 2019.
“Players are still engaging with favorite games on mobile but have a broader array of alternative entertainment options open to them compared to a year ago as life in the U.S. normalizes,” Randy Nelson, head of mobile insights at Sensor Tower, said as part of The NPD report.
In the first quarter of 2022, total spending on games in the United States was $13.9 billion, but mobile gaming had the biggest dip in spending, down 10% from the same period last year. While mobile expenditure was down, The NPD notes that several of the platform’s most popular games continued to gain players in comparison to last year and even 2019.
While overall spending was down by $1.2 billion for the quarter, it was still more than pre-pandemic levels, according to the NPD. Supply restrictions for new hardware, a lack of additional disposable cash in the form of stimulus checks compared to Q1 2021, and “the return of experiential spending opportunities that had been dampened last year” are all contributing to the drop in spending.
Sales in 2022 are unlikely to surpass those of 2021, which was a record-breaking year in many aspects. Last year, total spending on video games reached a new high of $60.4 billion, a new high. That was up from a record-breaking $56.9 billion in 2020, a 27 percent rise above overall sales before the epidemic in 2019.
