The United States boasts the world’s most diversified video game market, with strong relevance for mobile and PC device segments and the world’s leading market for console games. In 2022, the US video game industry recorded an estimated total value of $53.3 billion (excluding hardware revenues), and it is projected that by 2027 the estimated total revenue will be $61.2 billion, representing a 14.8% increase compared to 2022.

a) The console video game market in the US

The decline in the console market was driven by the reduction in the supply of next-generation PlayStation and Xbox consoles (about -6% compared to 2021) and the slowdown in the performance of Nintendo Switch. The console hardware market decreased by 1.3% compared to the previous year in terms of unit sales in 2022.

Nintendo Switch narrowly surpassed PS5 as the best-selling console of 2022, while Xbox Series X|S came in third. The decline in console hardware affects the rest of the business lines, as the number of consoles being added to the market is lower.

The total console software market decreased by 10% compared to the previous year in terms of unit sales in CY 2022. Total software sales for Xbox remained unchanged, while PlayStation software sales decreased by 10% compared to the previous year. Purchases of full games remained almost unchanged, taking market share from physical format games, which recorded a 14% decline.

Add-on content was the worst performing side of the video game business, with a -25% decline, influenced by the stronger line of new launches and limited purchasing power of consumers due to the rising cost of living in Western markets.

On the other hand, subscriptions were the most successful monetization scheme, with a growth of 10%, driven mainly by Xbox Game Pass.

Sources:

1- IDG Consulting Console Gaming Market Update

2- “Videogiochi” Italian Trade Agency and Ministry of Foreign Affairs Report