Spending on video game content and hardware close to US$10bn

16 Oct 2010

Total consumer spending on video game hardware, content and accessories in the US is estimated to have reached between US$9.5bn and US$9.7bn, according to a new report.

This is according to a soon-to-be-released ‘Games Industry: Total Consumer Spend report’ from the NPD Group.

The report estimates that in addition to the US$3.7bn spent in the US by consumers on new physical video and PC game software in the first half of 2010 the total consumer spend on content via other monetisation methods, including used games, game rentals, subscriptions, digital full game downloads, social network games, downloadable content, and mobile game apps, is estimated in the range of US$2.6 to US$2.9 billion.

Based on this research, while dollars spent by consumers on new physical retail items (hardware, content and accessories) still accounts for the majority of the total consumer spend on the industry, the total consumer spend on the industry is nearly 40 percent larger than new physical retail sales alone.

“While the new physical retail channel still generates the majority of industry sales, our expanded research coverage allows us to assess the total consumer spend across the growing number of ways to acquire and experience gaming, including social networks,” said Anita Frazier, industry analyst, The NPD Group.

“Through a combination of point-of-sale and consumer research tracking, The NPD Group is providing an expanded, more comprehensive measure of a dynamic and rapidly changing games industry,” Frazier said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years