According to the NPD group, spending on video game software, hardware, and accessories is down 5% in 2022 from 2021, totaling $56.6 billion in the US. This despite growth in hardware and subscription expenses.
According to industry analyst Mat Piscatella, “Factors impacting 2022 spending included continued console hardware supply constraints, a relatively light streak of new premium releases, and macroeconomic conditions.”
In 2022, there was fierce competition for console sales, with the Nintendo Switch selling the most units and the PlayStation 5 the highest sales for the year. The Xbox Series X|S placed third in both units and dollar sales for the year.
These aren’t surprising numbers considering the Nintendo Switch has led unit sales for years, despite the console falling behind the competition in terms of raw horsepower and graphics capabilities. The console’s lower price tag and handheld-hybrid nature make it appealing to households with children. Where a family might only buy one PS5, they can easily buy a separate Switch for multiple members of the household.
Nintendo’s family-friendly range of games also makes it appealing to a wider range of age groups.
The PS5, meanwhile, has been the most sought-after console since its release in November 2020, but supply has been a problem since launch until recently thanks to the impact of the COVID-19 pandemic on the supply chain and high demand. It will be interesting to see how these consoles perform in 2023 as supply restrictions become a non-factor and the Nintendo Switch falls even further behind in terms of performance compared to PlayStation and Xbox.
Check out the best-selling video games of 2022 here.