Video game sales plunge 13% in the second quarter, with mobile leading the way again (NASDAQ:MSFT)
Consumer spending on video games fell 13% in the second quarter from the same period a year ago — accelerating the year-over-year declines as the industry grapples with harsh comparisons to a 2021 pandemic and struggles out of supply chain woes amid an inflationary shock for entertainment consumers.
Data in NPD Group’s Q2 2022 Games Market Dynamics US report shows that total video game spending was $12.35 billion for the quarter, again with broad declines and again with mobile being the largest contributor to this decline. The only category that saw growth during this period was non-mobile subscription content spend.
According to Sensor Tower, mobile spending fell 12% over the same period in 2021.
“While our projections predicted a downward trend in mobile spending as life in the US returned to a new normal and consumers had fewer opportunities to engage with these titles, the current economic environment has certainly contributed to an accelerated decline,” According to Sensor Tower Randy Nelson said: “Nevertheless, it is higher than before the pandemic.
“Higher prices in everyday spending categories like food and gas, the return of experiential spending like travel and attending live events, lower new game releases, and continued shortages in hardware supplies to new-gen consoles likely contributed to the observed decline in the second quarter,” said NPD analyst Mat Piscatella.
Hardware sales were down 1% year over year, while sales of accessories were down 11%. Hardware unit sales for the quarter were led by Nintendo Switch (OTCPK:NTDOY), while dollar sales for the quarter were led by the PlayStation 5 (NYSE: SONY).
As for content, revenue fell 13% to $10.97 billion.
Among the top sellers and most played games across all platforms: Among Us, Angry Birds 2, Bingo Blitz (PLTK), Call of Duty: Warzone (NASDAQ:ATVI), candy Crush Saga (ATVI), Candy Crush Soda Saga (ATVI), clash of clans (OTCPK:TCEHY), Coin Master, Diablo immortal (ATVI), elden ring (OTCPK:NCBDY), Evony: The Return of the King, Fortnite (Epic/OTCPK:TCEHY), Grand Theft Auto V (TTWO), Homescapes, Kirby and the Forgotten Land (OTCPK:NTDOY), Lego Star Wars: The Skywalker Saga (WBD), Madden NFL 22 (EA), Mario Kart 8 (OTCPK:NTDOY), Minecraft, MLB The Show 22 (Sony), Pokemon GO (OTCPK:NTDOY), Roblox (RBLX), Royal Match, The Sims 4 (EA) and state of survival.
Related Tickers: OTCPK:NTDOY, SONY, NASDAQ:MSFT, HEAR, LOGI, CRSR, EA, ATVI, TTWO, WBD, OTCPK:UBSFY, OTCPK:NCBDY, OTCPK:SQNNY, OTCPK:CCOEY, OTCPK:SGAMY, SKLZ, SE, NTES, OTCPK:TCEHY, RBLX. Retail Inventory: GME.
ETFs: GAMR, ESPO, NERD
Consumer spending on gaming was down 8% year over year in the first quarter.