The video game industry has long been a behemoth in terms of the profits it generates. It likely won’t change anytime soon, but consumer spending on video games has dropped and may continue to decline.
It has been discovered from the data that people are spending less money on video games in 2022, which can be attributed to multiple reasons.
Spending in Video Game Products Decreased in 2022’s Second Quarter
As reported in an August 2022 press release from the NPD group, consumer spending in the United States in the second quarter (second quarter) of 2022 decreased by 13% compared to the second quarter of 2021.
Total consumer spending still stands at $ 12. See the article : Martha dies and Hot Wheels Unleashed wins Italian Sports awards.35 billion, so while it’s down from the previous year, it’s clear that there are still significant profits in the video game industry.
The NPD Group’s press release also found that mobile content experienced the largest decline, while non-mobile subscription content was the only category observed to see growth from the second quarter of 2021. money just for subscription content for video games, the NPD Group’s report suggests you’re in the majority.
Why Did People Spend Less on Video Games During 2022 Q2?
There are multiple factors why people are spending less on video games in 2022 than in 2021, but not everyone is so clear that this decrease in spending will become a trend or not.
1. Global Inflation and Changes in Spending
It is no secret that a period of global inflation is happening. As reported by the NPD group, increases in food and gasoline prices are likely to make video game spending less justifiable. On the same subject : 10 Non-Horror Games That Are Really Scary | Screen Rat. There are also increases in energy costs and general financial uncertainty on a global and individual level to consider.
The NPD group also noted how live events and travel expenses are picking up after the COVID-19 pandemic, which explains why customers may not have as much money to spend on video games as they previously. If you are in a period of financial uncertainty but want to continue enjoying your video game hobby, using the best game discount sites to buy cheap video games can help you.
2. Supply Issues With Hardware
The PlayStation 5 experienced supply problems due to a shortage of chips, as reported in a Sky News post. See the article : New on Netflix, Disney+, Crave and Prime Video in August. Graphics cards and processors have also been affected by the chip shortage, resulting in fewer people being able to buy a PS5 or upgrade their PCs.
These supply problems could contribute to the decrease in video game sales, as there are fewer people able to buy new consoles and the new games that come with them. Many gamers are likely to wait until they have the next generation of consoles before playing the latest games to get the best performance.
You can expect supply problems to subside over time, but it likely impacted game sales in 2022. As reported by the NPD group, PlayStation 5 hardware accounted for the highest dollar sales in the second quarter of 2022. This suggests that there is still strong demand for video game spending, but people are likely to be just waiting for supply problems to subside.
3. The Rise of Subscription Services
As reported by the NPD group, subscription content was the only video game sales area that increased during the second quarter of 2022. This, in addition to developments in the industry to push cloud gaming into the mainstream, showed that the model gaming is moving towards streaming services rather than buying games outright.
You are probably familiar with the Xbox Game Pass and PlayStation Plus services even if you haven’t used them yourself. These services are continuing to grow in popularity, with other companies joining and releasing more cloud gaming services.
Xbox Game Pass, PlayStation Plus, and other subscription services offer greater convenience to many players, depending on the situation. Since subscription content has been the only category of video game sales to increase, it’s possible that consumer spending is shifting from freehold to subscriptions rather than actually decreasing.
4. Growing Popularity of Free-to-Play Live-Service Games
Free live service games have been around for a while, chances are you’ve played one. Fortnite, Call of Duty: Warzone, Grand Theft Auto Online, and others are all very popular games that have stood the test of time in the gaming landscape.
All three of these games have been listed among the best-selling and most played games of the second quarter of 2022 by the NPD group, demonstrating the continued dominance of these titles on the gaming market.
As more games with this model continue to be released, it is possible that video game sales are dropping as gamers in general choose to stick to free-to-play titles.
Will Video Game Spending Continue to Decrease Throughout 2022 and Beyond?
While it is a fact that video game spending has largely declined in 2022 from the previous year, it remains to be seen whether this will become a trend or one-off as the world exits the pandemic and financial uncertainty towards a new normal. .
Living in a hyper-capitalist world, you are probably aware of the need to reduce your video game spending wherever possible. Fortunately, there are several ways to save money on games.