U.S. Video Game Industry Revenue Reached Record-Breaking $43.4 Billion in 2018
According to a report from the ESA and the NPD Group, video game sales reached a record-breaking figure of $43.4 billion this year.
Guess what? People love to buy video games! Per a report from the Entertainment Software Association (ESA) and the NPD Group, total revenue for the video game industry in the United States reached $43.4 billion in 2018, 18 percent higher than in 2017.
$7.5 billion of that comes from hardware and peripheral sales, a 15 percent increase from the 2017 figure of $6.5 billion. Likewise, software, in-game purchases, and subscriptions made up $35.8 billion of that record-breaking number, an 18 percent increase from $30.4 billion in 2017. Those numbers come from NPD, with additional figures covering purchases from mobile platforms provided by Sensor Tower.
While the newest release from the ESA doesn’t provide any specific software titles, there have been a number of blockbuster titles from 2018 that made waves on the sales charts. Some of these games include Marvel’s Spider-Man and God of War for the PS4, a dominating Red Dead Redemption 2 during the month of November, and Call of Duty: Black Ops 4 on digital storefronts, just to name a few of many titles.
Nintendo, in particular, had an excellent summer, with the NES Classic and Octopath Traveler topping the NPD charts back in June. With the Nintendo Switch hardware reaching a high, the NPD Group predicts that the hybrid console will lead its competition in sales in 2019.
Says acting ESA President and CEO Stanley Pierre-Louis:
“The impressive economic growth of the industry announced today parallels the growth of the industry in mainstream American culture. Across the nation, we count people of all backgrounds and stages of life among our most passionate video game players and fans. Interactive entertainment stands today as the most influential form of entertainment in America.”
From Mat Piscatella, video games industry analyst for the NPD Group:
“2018 was another record-setting year for the U.S. video game industry as consumer spending jumped 18 percent to over $43 billion. Whether it was playing on the go on a mobile device or at home on a PC or console, consumers of all ages and interests found compelling content that delighted in 2018. Console, PC, and mobile platforms all saw significant growth, while developing portions of the market like subscription and streaming services gave us a peek into a future full of possibilities for the industry and gamers.”
You hear that, movies? Look out—even though it makes little sense to compare the two industries in revenue when video games are significantly more expensive than movie tickets and home releases. Still, look out.