Why people will spend less on video games in 2022

The video game industry has always been a giant in terms of profits. This isn’t likely to change anytime soon, but consumer spending on video games has fallen and could continue to decline.

The data shows that people are spending less money on video games in 2022, which could be attributed to multiple reasons.

Spending on video game products declined in the second quarter of 2022

As reported in August 2022 NPD Group press releaseIn the second quarter (Q2) of 2022, US consumer spending was down 13% from the second quarter of 2021.

Total consumer spending is still $12.35 billion, so while it’s down from the previous year, it’s clear that there are still significant profits to be made in the video game industry.

The NPD Group press release also noted that mobile content saw the largest decline, while non-mobile subscription content was the only category that saw growth compared to the second quarter of 2021. If you find yourself spending money solely on subscription content in video games, the NPD Group press release points out. The NPD Group reports that you are in the majority.

Why are people spending less on video games during the second quarter of 2022?

There are many factors causing people to spend less on video games in 2022 compared to 2021, but not all of them are equally clear about whether or not this spending decrease will become a trend.

1. Global inflation and changes in spending

It is no secret that a period of global inflation is occurring. As reported by the NPD Group, increases in food and gasoline prices are likely to make spending on video games less justified. There are also increases in energy costs and general financial uncertainty at the global and individual levels to consider.

The NPD group also noted how live events and travel spending have bounced back after the COVID-19 pandemic, which explains why customers don’t have as much money to spend on video games as they once did. If you are in a period of financial uncertainty but want to continue enjoying your video game hobby, then using the best gaming discount sites to buy video games at cheap price can help you.

2. Supply problems with hardware

The PlayStation 5 has had supply issues due to a shortage of chips, as reported in a Sky News Post. Graphics cards and processors have also been affected by the lack of chips, which has resulted in fewer people being able to buy a PS5 or upgrade their PC.

These supply issues can contribute to declining video game sales, as there are fewer people able to buy new consoles and the new games that come with them. Many gamers are likely to wait until they get the latest generation of consoles before playing the latest games in order to get the best performance.

You can expect supply issues to subside over time, but they will likely affect game sales in 2022. As reported by NPD Group, PlayStation 5 consoles recorded their highest dollar sales in the second quarter of 2022. This indicates that there is still demand High on spending on video games, but it’s possible that people are just waiting for the display issues to subside.

3. The emergence of subscription services

As reported by NPD Group, subscription content was the only area of ​​video game sales that increased during the second quarter of 2022. This combined with developments in the industry to push cloud gaming into the mainstream has shown that the gaming model is advancing towards streaming services rather than buying games outright. .

You probably know the Xbox Game Pass and PlayStation Plus services even if you haven’t used them yourself. These services continue to grow in popularity, with other companies also joining and releasing cloud gaming services.

Xbox Game Pass, PlayStation Plus, and other subscription services offer greater affordability for many players, depending on your situation. Since subscription content was the only category that increased video game sales, it may be that consumer spending is moving from full ownership to subscriptions rather than actually decreasing.

4. Free live service games are growing in popularity

Free live service games have been around for a while now, and you’ve likely played one of them. Fortnite, Call of Duty: Warzone, Grand Theft Auto Online and more are all very popular games that have stood the test of time in the gaming field.

These three games were listed among the best-selling and most-played games of the second quarter of 2022 by the NPD Group, demonstrating the continued dominance of these titles in the gaming market.

As more games continue to be released with this model, video game sales will likely decline as players generally choose to stick with free-to-play titles.

Will spending on video games continue to decline throughout 2022 and beyond?

While it is a fact that spending on video games has decreased significantly in 2022 compared to the previous year, it remains to be seen whether this will turn into a trend or a one-off as the world transitions from pandemic and financial uncertainty to the new normal.

If you live in an overly capitalistic world, you are probably aware of the need to reduce your spending on video games where possible. Fortunately, there are multiple ways to save money on games.

(Visited 1 times, 1 visits today)

Related posts

Leave a Comment