Gains in Hardware and Subscription Spending Were Offset by Declines Across Other Segments

Port Washington, NY, November 8, 2022 – According to the Q3 2022 Games Market Dynamics: U.S.* report from The NPD Group, consumer spending on video gaming in the U.S. totaled $12.34 billion in the third quarter (Q3) of 2022 (July – September), a decline of 5% when compared to Q3 2021.

Non-mobile subscription content and video game hardware spending were among the quarter’s growth categories but were unable to offset declines experienced across other segments. Console and portable content contributed most to the overall drop in spending. Data from Sensor Tower shows U.S. consumer spending in mobile games during the third quarter fell 9% from Q3 2021..

“Mobile game spend in the U.S. continues to decline as consumers contend with both economic uncertainties and a new post-pandemic normal,” said Dennis Yeh, gaming insights lead at Sensor Tower. “Midcore games that require longer or continued playing sessions are being pinched by reductions in discretionary time and money to spend on mobile games. Spending on mobile games is declining much more than it is for games that typically require less active engagement, like social slots games. While there is still a decent chance this year’s U.S. mobile game revenue will surpass 2021 levels, worsening headwinds have firmly shifted the conversation away from the question of by how much.”

Overall content spending in Q3 reached $10.64 billion, a 7% decrease over Q3 2021. Hardware increased 16% and accessories declined 12%.

Among the best-selling and most played games across all platforms in the third quarter were Among Us, Angry Birds 2, Bingo Blitz, Call of Duty: Warzone, Candy Crush Saga, Candy Crush Soda Saga, Clash of Clans, Coin Master, FIFA 23, Fortnite, Grand Theft Auto V, Madden NFL 23, Mario Kart 8, Minecraft, NBA 2K23, Pokémon GO, Roblox, Splatoon 3, The Sims 4 and Xenoblade Chronicles 3.

PlayStation 5 led video game hardware in both unit and dollar sales in the third quarter of this year.

“Improved supply of new generation consoles provided a much-needed boost to consumer spending in the third quarter. Unfortunately, this increase wasn’t enough to offset lower content spending from a light release slate and macro factors impacting the video game consumer,” said Mat Piscatella, games industry analyst at The NPD Group. “PlayStation 5 and Xbox Series hardware each achieved double-digit percentage gains in consumer spending during the quarter, while new premium releases such as FIFA 23, Madden NFL 23, NBA 2K23 and Splatoon 3, among others, saw strong sales and engagement. The market is showing signs of positive momentum moving into the holiday quarter. If the supply of new generation consoles continues to improve, more positive changes in performance may be seen.”

Methodology: Games Market Dynamics: U.S. provides a comprehensive measure of the consumer spend on video games in the U.S. including purchases of video games hardware, content, and accessories. It is released on a quarterly basis and provides insight and trending into the broader consumer spend on the industry including physical format sales such as new and used physical retail sales as well as game rentals, and digital format sales including full game digital downloads and downloadable content (DLC), spending on subscriptions and mobile gaming. This assessment of the broader consumer spend on the industry utilizes NPD’s monthly POS tracking services as well as consumer data from other NPD trackers, monitors, and reports.

*Accessory sales exclude game cards

About Sensor Tower, Inc.

Sensor Tower is the leading provider of market intelligence and insights for the global app economy. Founded in 2013 and based in San Francisco, CA, Sensor Tower provides enterprise-level data on mobile apps and publishers through our Store Intelligence, Ad Intelligence, Usage Intelligence, and App Intelligence platforms, which offer download, revenue, share of voice, and engagement metrics at unparalleled accuracy for the world’s most important markets. For more information, visit sensortower.com. Follow us on Twitter: @sensortower.