NPD, a market research company, reports that video gaming expenditure in the United States increased by $1.35 billion in the most recent quarter. That's still a lot of money, but it's down $1.78 billion, or 13 percent, compared to the same period last year.
Content expenditure in Q2 increased to $10.97 billion, compared to $10.97 billion in Q2 2021. Hardware and accessories decreased by 1% and 11%, respectively, but mobile content accounted for the largest part of the decline.
Non-mobile subscription spending increased by 15% in the second quarter, indicating that Microsoft's Xbox/PC Game Pass service is in good hands. Interestingly, Sony's PlayStation Plus Extra and Premium tiers only launched at the end of the quarter, so they wouldn't have contributed much to the figures.
Consumers spent more on video gaming this year than in the pre-pandemic era, as evidenced by other industries, but the post-lockdown effect and rising cost of living are affecting YoY growth.
"Increasing everyday spending expenses like food and gas, a return of experiential spending like travel and attending live events, a smaller release slate of new games, and persistent new generation console hardware supply limitations were all likely contributors to the decline in the second quarter," said Mat Piscatella, a game industry analyst at The NPD Group.
Consumer spending continues to rise above pre-pandemic levels following a period of sustained growth. However, unpredictable and rapidly changing circumstances may continue to impact the market in unexpected ways in the coming months.
The best-selling premium game in LEGO Star Wars: The Skywalker Saga was also reported by NPD in the quarter. Hardware sales dominated the Nintendo Switch, which has changed virtually every quarter since the handheld hybrid was launched in March 2017. However, the PlayStation 5 has remained the most popular channel.
Sony has revised its annual profit prediction this week due to weaker software sales, which fell by 26% YoY in Q2, and Nintendo is expected to see a yearly decline in hardware sales tomorrow.
Olena Yakobchuk, Masthead