In the lockdown induced year of 2020, video game use and spending on content, hardware and accessories hit records
It was expected that once lockdowns were eased, spending in the sector would fall. That has not happened.
Rather, total spending in 2021 exceeded that of 2020 by 8%, at $60.4 billion in the US alone.
According to data released by the Entertainment Software Association (ESA) and The NPD Group, the $60.4 billion in spending includes all gaming content categories, across all gaming platforms, as well as sales for hardware and accessories.
ESA President and CEO, Stanley Pierre-Louis said, “The growth and impact of the video game industry over the past year underscores the sustained trends we have seen for several years, namely that people of all ages and demographics are playing video games for joy and competition, connecting with others, learning and mental stimulation, as well as much needed stress relief…”
Even with supply chain issues, spending on hardware rose to $6.1 billion, up 14% over 2020, while accessories generated $2.7 billion in sales, up 2%.
Content spending across all gaming platforms rose 7% over 2020 to $51.7 billion.
While many hardware and accessories are still difficult to find, sales in these product categories are likely to further increase this year, once availability is no longer an issue.
2022 is highly likely to be another record-breaking year for the industry. Should sales continue at the same rate of 2021, the US market can expect over $65 billion in revenues this year.
On the mergers and acquisitions, investment, SPAC and IPO front, the industry likely already surpassed the total deal volume, in dollars, of 2021. Which was a record-breaking year in its own.
Already in 2022, over $81 billion in deals have been announced.
During the first three quarters of 2021, roughly $70 billion in deals were reported (reporting on deal activity for the full year of 2021 is still being compiled).
This investment activity highlights the video game sector as one of the hottest for M&A, direct investment, SPAC, and IPO deals, globally.
At its current pace, investment in the video game industry could surpass the totals of 2020 and 2021 combined, by springtime, and potentially double those record years totals by years end.
Read more about US consumer video game spending for 2021, HERE
Or read more about the red-hot video game investment space, HERE