Video game spending reached a new high in August
By Bob Garcia
August set a new record for sales in the video game industry
August was a record month for consumer spending on video game content, accessories, and hardware, which puts to rest many concerns related to the pandemic’s rise and decline in the economic reopening of video games for the time being. Some large video game companies believed that the pandemic would be catastrophic to their sales, but in reality, the pandemic does not appear to be having a major impact at this time.
According to data shared by NPD Group two days ago, spending totaled $4.4 billion, which translates to a 7% increase in August compared to the same month a year ago. If you were to add up all the months so far this year, the year-to-date has seen strong momentum, as it is up 13% to $37.9 billion compared to the same period in 2020. While it was thought that last year was going to be a pretty strong year where many enthusiasts had to spend most of their time cooped up at home playing video games, 2021 is proving to have its own.
There is no doubt that the video game industry was one (and a few) beneficiaries of the surge in home entertainment brought on by the COVID-19 pandemic. Many analysts have been waiting to see when the interest starts to wane; however, it looks like that won’t be coming anytime soon. Microsoft’s Xbox X Series and Sony Group’s PlayStation 5 were two launches that have greatly helped keep the flame alive in the industry, even though some consoles have been difficult to access due to supply constraints (which, on the other hand, has meant high demand).
Hardware sales rose 45% to $329 million in the month, which, according to NPD, was the best August tally since 2008, and the third-highest ever. Electronic Arts Inc.’s Madden NFL 22 was the top-selling game last month, followed by Sony’s Ghost of Tsushima.