News

2010 U.S. Gaming Spend Down

$15.4 to $15.6 billion spent in the US across all gaming content, retail accounts for $10.6 billion.

$15.4 to $15.6 billion spent in the US across all gaming content, retail accounts for $10.6 billion.

The NPD Group has released a preliminary estimate for the total consumer spend on gaming content via all monetisation methods in the US. The figure, which includes new physical video and PC games, used games, game rentals, subscriptions, digital downloads, social network games, DLC and mobile game apps, is between $15.4 to $15.6 billion - this is a potential decline of up to one percent when compared to 2009.

“December 2010 represented one of the strongest monthly performances the industry has ever had at retail. It was a robust finish to a year marked by innovation and engaging millions of consumers through a multitude of delivery models,” said Entertainment Software Association president and CEO, Michael D. Gallagher.

“Computer and video games led all other entertainment options as we responded to consumers’ demands for creative content on every platform from consoles to smart phones to handheld game devices. I look forward to a strong 2011 with a great pipeline of titles, many of which will be unveiled at the global center of video games - the E3 Expo.”

Based on this estimate, it's new physical content from retail that made up the majority of the total consumer spend, accounting for $10.1 billion - a five per cent decline over 2009's $10.6 billion. This decline, however, was offset by increases in used sales, digital downloads and mobile applications. PC software retail sales rose three per cent over last year.

“The dynamics of games content purchasing changed dramatically in 2010 with options ranging from the physical product to digital downloads on connected devices as well as in-store digital kiosks,” said NPD Group analyst, Anita Frazier. “The increasing number of ways to acquire the content has allowed the industry to maintain total consumer spend on content as compared to 2009, and we should expect 2011 to be a growth year in the games industry as the consumer demand for gaming continues to evolve.”

The NPD Group will release a final estimate of the total consumer spend on the games industry in March.