Consumers in the U.S. spent a record amount on video games in 2020.
A research firm, NPD Group, suggests that the total video game spending last year hit a new record. Furthermore, 2020 was the biggest year for gaming hardware in almost a decade.
Video Game Spending in 2020
According to NPD Group, video game spending in the United States hit a new record of $56.9 billion. That’s a 27 percent increase compared with the previous year.
Similarly, consumer spending on video games during the holidays reached a record of $7.7 billion. Again, that’s a 25 percent surge from December 2019’s sales.
Some of the most popular purchases include Call of Duty, with Black Ops: Cold War and 2019’s Call of Duty: Modern Warfare. What’s more, the Call of Duty franchise remains the bestselling gaming franchise in the U.S. for a record 12 years straight.
As impressive as the numbers seem, the report suggests that it could have been higher.
Console Sales: PlayStation 5, Xbox Series X, and Nintendo Switch
The PS5 was the second bestselling console in terms of dollars, while the PS4 was second place in units sold. On the other hand, Nintendo’s Switch was number one in terms of both dollars and units sold.
It’s no surprise that many people spent heavily on video games last year, considering the COVID-19 lockdowns. Then, there’s also the game launches.
Last year saw the release of Sony‘s PlayStation 5 and Microsoft‘s new Xbox Series X. While the two consoles were hot holiday gifts last year, they were also among the most challenging gifts to purchase.
Many retailers sold out almost immediately. In fact, both the Xbox Series X and PlayStation 5 remained out of stock at several major retailers, including Amazon.
As you may have guessed, these constraints on both consoles’ supply hurt the total video game spending in the U.S.
Nevertheless, video game hardware spends reached $1.35 billion last December — up from 38 percent in 2019. According to NPD, it’s also the highest total for a December month since 2013.
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