The US gaming industry has lost 13% of revenue for the year. In the second quarter alone, gamers spent $1.7 billion less on video games, according to NPD research. This data is supported by reports from Microsoft and Sony: both companies experienced a decline in revenue from gaming products after the pandemic eased.
Earlier, Sony had already reported a weakening of the Playstation business due to the fact that sales of game software fell by 26% for the year. The company explained this by the fact that this year there were no significant games for PS, and users began to spend less time playing.
Microsoft’s Xbox revenue fell 11% last quarter compared to the same period a year ago. Nintendo has yet to release its earnings report, but it also predicted a slight decline from the previous year.
Overall spending on video games fell last quarter, but subscription content “was the only positive result,” NPD said. Nintendo Switch led hardware sales, and PS5 brought the biggest dollar sales.
Despite the decline, “consumer spending continues to trend above pre-pandemic levels. However, unpredictable and quickly changing conditions may continue to impact the market in unexpected ways in the coming quarters,” says the NPD analyst.