USA: Video game market shrinks significantly
The video game market in the United States fell dramatically in March and is expected to decline further in the first quarter of 2022. As the sector consolidates, people are spending their money elsewhere once more.
The video game market in the United States fell by 15% in March 2022 compared to the previous year. This is based on NPD Group data, which video game analyst Mat Piscatella commented on.
According to Piscatella, the drop in revenues to 4.9 billion US dollars is visible in all categories. The entire first quarter is likewise in the red, down 8% from the same period last year to now 13.9 billion US dollars.
The causes of the still-tense supply situation can be seen at the NPD Group, for example, in the case of consoles. However, the corona pandemic's now much-decreased requirements also contribute to the bad outcome. People spend their money in other places.
The still-tense hardware industry is suffering the effects as well. Demand is no longer as strong as it was a year ago, which has various consequences at once, including apparently lower pricing for customers and increased availability.
In March, for example, the Xbox Series X/S was the best-selling console in the United States in terms of sales; the Switch leads in terms of units. However, even in the hardware sector, overall industry sales are declining dramatically, as individuals are spending more money on activities outside the home.
That is evident in console accessory sales, which are down 23 percent year over year and 16 percent in the first quarter.
The Xbox Elite Series 2 controller continues to be a profitable product for Microsoft, which also sells to PC consumers.
In terms of sales, Elden Ring was the standout of the still-young year. In a year's time, Call of Duty Vanguard is still the leader, but it could be dethroned. Gran Turismo 7 is Sony's best game, however, due to its exclusivity, it cannot compete with a multiplatform product in terms of sales.
Meanwhile, the video game industry is going through a period of intense concentration. Publishers and studios are changing ownership, and the current trend is to expand. The old "big 4" is giving way to the new "big 4."
Microsoft swallowed Zenimax and Activision-Blizzard, among others, the Embracer Group amasses developer studios and just took over the European division of Square Enix, Sony expands its portfolio with more exclusive games, and old titans like Ubisoft are becoming serious takeover targets.
