Video game sales fall 8% in the first quarter, with mobile leading the declines (NASDAQ: MSFT)
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Consumer spending on video games fell 8% in the first quarter compared to the same period in 2021, an indicator of the decline from mid-pandemic highs as some consumer dollars found their way back to alternative experiences, and the industry continued to struggle to get new consoles into the hands of consumers. buyers.
Data from the NPD Group’s Q1 2022 Gaming Market Dynamics Report shows overall spending of $13.9 billion for the January-March quarter, with large declines – although mobile contributed the most on the downside, with US spending on mobile games falling 10% year over year, according to Sensor Tower.
Declines were seen in console and handheld content, non-console PC, cloud and VR content, mobile content, hardware and accessories.
Content spend, the biggest driver, fell 7% overall – subscription content was the only segment to gain, according to NPD – while hardware spend fell 15% (unit sales led by Nintendo Switch (OTCPK:NTDOY); dollar sales led by Xbox (NASDAQ: MSFT)), and spending on accessories fell 16%.
Still, “spending and engagement remained significantly above pre-pandemic levels,” says analyst Mat Piscatella, noting that spending constraints included “continued supply constraints on new console hardware , a quarter comparable to last year that included government COVID-19 stimulus checks for individuals, and the return of experiential spending opportunities that had been depressed last year, among others.
As noted, mobile contributed the biggest drop, with an “unusual quarter-over-quarter decline in mobile game spending” starting in 2021, said Randy Nelson of Sensor Tower. Despite a marked slowdown across the portfolio, usage of the most popular titles has increased, with combined users rising not only from Q1 2021, but also from Q1 2019.
Among the best-selling and most-played games across all platforms for the quarter, according to NPD Group: Animal Crossing: New Horizons (OTCPK:NTDOY), Call of Duty: Vanguard (NASDAQ: ATVI), Call of Duty: Warzone (ATVI), Candy Crush Saga (ATVI), Candy Crush Soda Saga (ATVI), Coin Master, Elden Ring (OTCPK: NCBDY), fortnite (Epic/OTCPK: TCEHY), Grand Theft Auto V (TTWO), Horizon: West forbidden (NYSE: SONY), Madden NFL 22 (AE), Mario Kart 8 (OTCPK:NTDOY), Mario Party Superstars (OTCPK:NTDOY), Minecraft, NBA 2K22 (TTWO), Pokemon GO (OTCPK:NTDOY), Pokemon Legends: Arceus (OTCPK:NTDOY), Roblox (RBLX), The Sims 4 (AE), and WWE 2K22 (TTWO).
Associated symbols: OTCPK:NTDOY, SONY, MSFT, HEAR, LOGI, CRSR, EA, ATVI, TTWO, WBD, OTCPK:UBSFY, OTCPK:NCBDY, OTCPK:SQNNY, OTCPK:CCOEY, OTCPK:SGAMY, ZNGA, SKLZ, SE , NTES, OTCPK: TCEHY, RBLX. Retail stock: GME.
ETFs: GAMR, ESPO, NERD
The March report that concluded the first quarter showed sales fell year-over-year for their fifth consecutive month.
