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Decline In Video Game Spending Continued Through Q2 2022



Video game spending in 2022 has continued to decline. According to a report from NPD Group, spending has dropped 13% in the second quarter of 2022, as compared to the same period of time last year.

Total consumer spending on video gaming in Q2 amounted to $12.35 billion, a drop of $1.71 billion as compared to Q2 2021. Non-mobile subscription spending did increase in this period, but it was the only broad spending category to increase. In fact, decreased mobile spending accounts for much of the decline, according to the report. Spending on mobile games decreased by 12%. In other categories, hardware spending decreased by 1% and accessory spending by 11%.

The report attributes the decline to a broader return to work and other public places as well as an uncertain economic environment. Increased gas prices and general inflation have make budgets tighter. There's also less widespread obstacles of fewer new releases and ongoing hardware shortages. However, even with all these factors, spending is still above pre-pandemic levels.

 

Northeastmonk

Gold Member
It’s silly, but sometimes I get a feeling like people in general are not impressed by video games or at least they’re not wowing everyone anymore. Sure we have SSD consoles now, but in terms of games there’s not a lot you haven’t experienced before. Granted, I do understand that that’s not a fact because you can point out the significant differences in each release and point out all these different genres. At a glance, it’s the same thing, but prettier. There’s also a lot out there to pick and choose from too.

Video Games went through that type of thing before and after Atari. Nintendo brought it back, but there’s a period where video games didn’t stand out anymore. There’s always slow periods of growth and over saturation in the market begins to show itself. We already see games being games based off other games.

I imagine when God of War and Starfield start getting closer to release that there will probably be a surge. For the most part, you don’t exactly see the same amount of headlines. I remember the slow years. The slow years where the next huge hit on that console is a year or two away from releasing. It always happens. This is probably one of those times. It’s funny when people sell their consoles and they’ll immediately buy another console once a game gets announced. Plus you have people who haven’t experienced the slowdowns because they haven’t had a chance to buy the next Gen console. I find that funny too because they’re just waiting to wait with everyone else. That’s at least a semi-good feeling.
 
Everything is just rehashes of old stuff so I hardly ever buy any games anymore. Plus, I’m afraid to get burned on junk games that are full of bugs and have a crappy cliche story and uninteresting characters.
 

adamsapple

Or is it just one of Phil's balls in my throat?
There wasn't really much for me to buy in Q2. I've got a massive backlog on game pass to keep me going until Soul Hackers 2 etc start coming out.
 
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Iced Arcade

Member
lack of console availability, subscription services being a better deal, covid had people cooped up with nothing better to do, increased game prices could be a reason lol
 

Tams

Gold Member
It’s silly, but sometimes I get a feeling like people in general are not impressed by video games or at least they’re not wowing everyone anymore. Sure we have SSD consoles now, but in terms of games there’s not a lot you haven’t experienced before. Granted, I do understand that that’s not a fact because you can point out the significant differences in each release and point out all these different genres. At a glance, it’s the same thing, but prettier. There’s also a lot out there to pick and choose from too.

Video Games went through that type of thing before and after Atari. Nintendo brought it back, but there’s a period where video games didn’t stand out anymore. There’s always slow periods of growth and over saturation in the market begins to show itself. We already see games being games based off other games.

I imagine when God of War and Starfield start getting closer to release that there will probably be a surge. For the most part, you don’t exactly see the same amount of headlines. I remember the slow years. The slow years where the next huge hit on that console is a year or two away from releasing. It always happens. This is probably one of those times. It’s funny when people sell their consoles and they’ll immediately buy another console once a game gets announced. Plus you have people who haven’t experienced the slowdowns because they haven’t had a chance to buy the next Gen console. I find that funny too because they’re just waiting to wait with everyone else. That’s at least a semi-good feeling.
You're thinking too hard.

People just don't have as much disposable income. Staying cool (and later warm), eating, filling up the car, keeping the lights on, etc. are all more important.

And those with money spare are either saving it or spending it on things they haven't been able to do for almost two years.
 

Northeastmonk

Gold Member
You're thinking too hard.

People just don't have as much disposable income. Staying cool (and later warm), eating, filling up the car, keeping the lights on, etc. are all more important.

And those with money spare are either saving it or spending it on things they haven't been able to do for almost two years.
So you’re saying it’s not due to freemium software and the rise of cynicism? 😉

Yea. I definitely see that being a problem. Driving to GameStop and back could cost you more than the game you end up purchasing.
 
There are no big games I'm interested in this year. Went back to play unfinished games or older games while I wait for God of War, then back to Final Fantasy XIV and Private Server Dragon's Dogma Online.
 
Buying games day one loses a lot of it's appeal when games drop in price so fast and are included on services you sort of have to pay already because of paid online. It's like these companies are trying to teach their costumers that it ain't worth spending money on games.

I bought Elden Ring day on release, the next one will likely be God of War Ragnarok and after that probably FFXVI. With the accumulated backlog and the catalogs of game already available it extremely easy to skip games on release and wait a while.
 
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Laptop1991

Member
Less money to spend with the cost of living crises, hardly any new top games coming out, higher prices, it's a combination of things,

i personally haven't bought a new game since the beginning of 2021, and that was CP2077 cheap, as the games that have come out are either not my type of games or dont work properly.
 

TGO

Hype Train conductor. Works harder than it steams.
There's not much to buy...
Plus this
There wasn't really much for me to buy in Q2. I've got a massive backlog on game pass to keep me going until Soul Hackers 2 etc start coming out.
 

small_law

Member
It's not a decline. It's just those last couple COVID years people were home more so spent more. Now we're back to normal.
This. You're seeing it across every sector of consumer electronics. People stuck at home suddenly notice that their routers sucked, their TVs were old, etc. Going to work every day, being out and about, you just don't notice how fast your gear ages.
 
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Raven117

Gold Member
Hasnt been a lot of excitement in the industry for the "big stuff." (Other than Elden Ring).

So yeah....to be expected.
 

Fbh

Gold Member
OP pretty much covers it.
People no longer forced to stay inside + inflation + gas/power prices through the roof making budget tighter = people spending less on games.

Subscriptions are probably going to get a nice boost from this. When your budget is getting tighter spending $10-15 a month on a gaming subscription seems more appealing than spending $40-70 on a new game every 1-2 months.
 
OP pretty much covers it.
People no longer forced to stay inside + inflation + gas/power prices through the roof making budget tighter = people spending less on games.

Subscriptions are probably going to get a nice boost from this. When your budget is getting tighter spending $10-15 a month on a gaming subscription seems more appealing than spending $40-70 on a new game every 1-2 months.

If/when Microsoft is forced to actually turn a profit on Gamepass, it'll be a lot more than it is now. See the recent big Disney+ price hike.

The real answer is of course AAA is dying. I hope you guys like P2W.
 

OuterLimits

Member
Holiday spending will be interesting this year. This Winter is going to be tough financially for many people. Perhaps we get lucky and major Arctic outbreaks are infrequent.
 

Fools idol

Member
Energy bills in the UK went from £160 a month to £450 a month. Fuel costs on average went from £60 a tank to £100+, and food inflation means the monthly shop is up 100%. It's no surprise people dont have money left for games lol.
 
Probably a lack of good games minus Elden Ring and a few others.
Yeah. I think there may be some other causes too as we leave our imposed inside time. The popularity of certain games has left a generation thinking, "That's what video games are, that's the peak, no reason to explore further".

But when a generation sees the peek of your industry as being social spaces where you hustle to get cooler shit than the next person...how fucked are you when that generation starts to grind for cash IRL and it's more rewarding.

NES kids came back for stories or experiences based on the great software we had. We got hooked on generational wow factors. It's like TV for us.

For the most popular games in the last decade, the industry started selling capitalism/gambling simulators with no ability to deposit in their customers' accounts.

I would not be grinding for digital spiderman undies at 20 if thats what I did at 13. I would obviously see it for what it was one day, and never feel the need to reassess.
 
People were stuck in their homes for months, digital spending went up massively, especially in gaming. We all knew this. The corporations benefited massively but that time has now passed so they need to stop whining.

I'm sure constantly buying games is not at the top of anyones financial priorities.
 

SJRB

Gold Member
Release games I'm interested in and I'll buy them.

2022 has been pretty catastrophic so far in terms of videogame releases.
 

rofif

Gold Member
Inflation, everything s crazy expensive (electricity, mortgage, taxes)
and there are no games. I only bought HFW, Miles Morales and Elden Ring this year
 

reksveks

Member
Just reposting it here

Market - HW
July NPD Revenue: Double Digital growth
July UK units across all 3: -29%
July EU units across all 3: -48%
July JP units (according to Famitsu) - up 50% (69k to 101k)

This is just HW but software was also down everywhere in July. It will be interesting to see what the impact of inflation is going to be and whether it impacts different parts of the market differently.
 
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adamsapple

Or is it just one of Phil's balls in my throat?
it's understandable, we're in a mostly post-covid world, people are going back out again and not huddled up with nothing to do but play games.
 

levyjl1988

Member
it's understandable, we're in a mostly post-covid world, people are going back out again and not huddled up with nothing to do but play games.
This. What I find amazing is fewer and fewer people are wearing masks. The news stopped mentioning covid-19 rates. Its seems that people don’t test anymore.

I’m not sure if covid rates are spiking at all, or are people surviving and suffering from covid-19 in private?

Are people just sick of it? It seems like the danger is still there and yoloing it. Despite that yolo thinking is something people regret when they are sick or on their death bed.

Regardless I’m happy working from home and staying in home. I got sick precovid 19 and it ruined my cruise vacation. That lesson enough was made to never trust the public and always mask up.
 
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