Video Games Industry Reports Record June
A report compiled by leading New York-based consumer spending market research company NPD Group recently revealed that spending across video game hardware, software (the actual games), accessories and game cards during the month of June 2020, was the highest in a decade (since 2010). Sales reached the $6.6 billion-mark in June this year.
When compared year-on-year, which is to say when comparing this year’s June with last year’s June, sales were found to be up at least 19% when taking into account average sales for the year. June 2020, specifically, witnessed 26% more sales than what did June 2019.
More Free Time – More Sales
Even though NPD did not cite the reason for the increase in sales specifically as such, it doesn’t require the world’s best minds to figure out that the spike in sales would have been the work of the global health crisis forcing people to stay at home. More free time necessarily means more time to spend on leisurely activities such as gaming and other forms of digital entertainment.
The fact that the mentioned record spending isn’t limited to June, but in fact, to the entire quarter, only serves to confirm the reason behind the sudden increase in sales. And what’s more, 2020 is probably not yet at the end of its record-setting tether either – not with two new console releases from gaming giants Microsoft and Sony hitting the markets in November.
Microsoft’s long-awaited Xbox Series X and Sony’s equally eagerly anticipated PlayStation 5 console are bound to shake things up for the video games industry all over again toward the end of the year. Especially when talking physical hardware sales.
EA Sells Sports Relief
But the role that a company such as EA would have played in the increase in sales revenue should not be undermined either. A complete stoppage in major sports events have had more and more people turning to games like FIFA and EA Sports UFC for their regular pro-sports fix. Not to mention the esports industry having played a role in all of that too.
Subscription cloud-based services too have played leading roles in the growth of the industry. A new free-to-play model within a subscription-based service offering has demanded all-new monetization pathways to be developed. Virtual items like loot boxes and skins have emerged as small goldmines all on their own.
Much controversy continues to plague virtual in-game assets sold to under-age children, and yet, the pay-to-win element in gaming remains thriving and going strong on all counts.