US gamers have spent just shy of $30 billion on video gaming in 2019, according to a new report from analyst group NPD. The new figures suggest the US is on the cusp of overtaking China as the world’s largest video game market.
Year-to-date figures compiled by NPD show that US consumers spent $27.9 billion on hardware, software, and subscription video game products. This represents an increase of 1% compared to the same period last year. US consumer spending of $24.7 billion on software and game content alone. A year-on-year increase of 3%.
NPD explains big-name titles Grand Theft Auto V, Borderlands 3, Madden NFL 20, Fortnite, Pokémon Go, Candy Crush Saga, and Minecraft bolstered sales.
Due to the next-generation consoles arriving next year, hardware sales have declined 23% to $1.9 billion. And, this despite sustained sales of Nintendo’s flagship Switch console.
Estimates by analysts Newzoo put 2019 total US gaming revenue at $36.86 billion, which may be somewhat conservative given the latest numbers. Newzoo estimates China will account for $36.54 billion of global video game revenue this year.
With the traditionally lucrative holiday season yet to come, US gamer spending may indeed creep towards the $40 billion. All indicators point towards the US reclaiming its position as the dominant market by the end of this year.
China stood tall in 2018 as the world’s leading gaming market as Chinese consumers spent a total of $37.9 billion on video game products. But due to government efforts to limit playtime for minors to combat perceived addiction and last year’s nine-month freeze on all game licenses, this year’s figures are set to decline somewhat despite dominating the global mobile sphere.
While China’s 619.5 million players base dwarfs that of the American market, US consumers clearly have an appetite for video game products. As well as the purchasing power to match.
Last modified: September 23, 2020 1:15 PM