US Video Game Market Soars to $41.9 Billion in 2022, Fueled byMobile Growth

The US video game software publishing market reached an impressive $41.9 billion in 2022, marking a significant milestone for the industry. This growth was propelled by strong sales momentum in March 2024, with consumer spending on video games in the US bolstered by double-digit growth in the mobile sector and the launch of highly anticipated titles.

Why this matters: The growth of the video game market has significant implications for the entertainment industry as a whole, as it continues to rival traditional forms of media in terms of revenue and cultural influence. The growth of the video game market has significant implications for the entertainment industry as a whole, as it continues to rival traditional forms of media in terms of revenue and cultural influence. In addition, the increasing importance of mobile gaming highlights the need for companies to adapt tochanging consumer habits and technological advancements.

According to Mat Piscatella, a gaming industry analyst at Circana, mobile accounted for a staggering 89% of the total year-on-year growth in video game content spending during March 2024. "Mobile's strong performance was supplemented by a 3% increase in Console Content spend, along with a 2% gain in the PC Cloud and Non-Console VR Content segment," Piscatella stated.

Dragon's Dogma 2 emerged the month's best-selling premium title, debuting at top of the overall chart. Helldivers 2 secured the second spot, solidifying its position being the leading seller for the first quarter of 2024. Other notable releases in March included Monopoly Go, a mobile game that capitalized on the enduring popularity of the classic board game, and ongoing strong performances fromestablished franchiseslike Fortnite, Call of Duty, and Grand Theft Auto V.

In the console market, PlayStation 5 led the charge in Q1 2024, dominating both unit sales and revenue. Nintendo Switch claimed the second spot in terms of units sold, while Xbox Series X/S ranked second in dollar sales. The success of these platforms was driven by a combination of hardware availability, compelling exclusive titles, and the continued growth of subscription-based services.

Despite a 24% drop in hardware spending, the US video game industry demonstrated remarkable resilience, with total spending up 6% in Q1 2024 compared to the same period in the previous year. Piscatella attributed this growth to the industry's diversification, stating, "Total U.S. Video Game spending being up 6% in Q1 2024 despite a 24% drop in hardware spending shows how diversification has made the market more resilient."

The US video game software publishing market's impressive performance in 2022, reaching $41.9 billion, highlights the industry's continued growth and resilience. With mobile gaming driving significant gains and highly anticipated titles on the horizon, such as Baldur's Gate 3, Balatro, Persona 3 Reload, Final Fantasy VII Rebirth, and releases from Bethesda and Amazon, the industry is set for further success and innovation in the years to come.

Key Takeaways

• US video game software publishing market reached $41.9 billion in 2022.
• Mobile gaming drove 89% of year-on-year growth in video game content spending.
• Dragon's Dogma 2 was the best-selling premium title in March 2024.
• PlayStation 5 led console sales in Q1 2024, followed by Nintendo Switch.
• Total US video game spending up 6% in Q1 2024 despite 24% drop in hardware spending.