The COVID-19 pandemic has had a significant impact on the video game industry, with more people at home and looking for indoor activities, leading to record-breaking sales figures in 2020. According to the NPD Group, spending on video games reached a record $56.9 billion from January to October 2020, a 22% increase compared to the same period in 2019. The software category saw the biggest increase, generating $45.2 billion in sales due to the release of popular games such as Ghost of Tsushima and The Last of Us Part II. The hardware category also saw an increase, with the Nintendo Switch seeing a 42% increase in sales. The future of video games is looking bright, with the industry expected to continue significant growth in coming years.
Record Breaking Sales Figures for Video Games in 2020
Introduction
The video game industry has experienced tremendous growth in the last decade, and the trend has continued in 2020 amid the COVID-19 pandemic. More people were stuck at home looking for indoor activities, and video games served as a perfect escape. As a result, the video game industry has set new records in sales figures this year.
Sales Figures
According to the NPD Group, which tracks video game sales in North America, spending on video games reached a record-breaking $56.9 billion from January to October 2020, which is a 22% increase compared to the same period in 2019. This includes hardware, software, accessories, and game cards.
The software category, which includes video games, saw the biggest increase with a 23% growth, generating $45.2 billion in sales. This is mainly due to the release of popular games such as Ghost of Tsushima, Animal Crossing: New Horizons, and The Last of Us Part II.
The hardware category, which includes consoles and gaming PCs, also saw an increase of 16%, generating $3 billion in sales. Nintendo Switch saw a 42% increase in sales, while PlayStation 4 and Xbox One also saw double-digit growth.
The accessories and game cards category grew by 22%, generating $8.7 billion in sales, mainly due to the increase in demand for gaming headsets, controllers, and gift cards for online gaming platforms.
Impact of COVID-19
The COVID-19 pandemic has had a significant impact on the video game industry, as more people have been stuck at home with limited activities to do. This has led to a surge in demand for video games and consoles, which has helped boost sales figures.
Furthermore, the cancellation of major events such as E3 and the rescheduling of the Olympics have resulted in gaming companies diverting their efforts and resources to releases and updates, leading to an influx in new content and game updates for gamers to enjoy.
Future of Video Games
The future of video games is looking bright, with the continued growth in gaming becoming increasingly popular as a mainstream form of entertainment. The industry is expected to continue to see significant growth in the coming years, with the introduction of new technology such as virtual reality and the increasing popularity of e-sports competitions.
The upcoming release of the next-generation consoles, the PlayStation 5 and Xbox Series X, is also expected to drive sales figures even higher in the coming months.