US consumers spent $4.5 billion on gaming in second quarter

By on October 5, 2011, 3:30 PM

US consumers spent $4.5 billion on video game hardware, downloadable content and accessories during the second quarter of 2011. The figure represents a 1 percent gain from the same time period a year ago, however spending on such items in the first quarter was significantly higher at $5.9 billion, says research firm NPD in their quarterly Games Industry: Total Consumer Spending report.

Gamers spent $1.4 billion in physical stores on console and PC gaming software. It is further estimated that consumers spent $1.7 billion on subscriptions, digital game downloads and mobile games. These numbers were also lower than first quarter estimates which were around $1.85 billion.

"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 mobile apps and downloadable content," said Anita Frazier, industry analyst at NPD.

CNET points out that the gaming industry downturn is due to sluggish demand for both hardware and software. Hardware like the Nintendo 3DS hasn’t moved nearly as well as the company had hoped, only selling 110,000 units in the US in the second quarter. In August it was reported that game sales had hit the lowest point since October 2006.

Things are expected to pick up in the second half as blockbuster titles like Battlefield 3 and Call of Duty: Modern Warfare 3 will be launching across all major platforms. The much-anticipated Diablo III went into beta last month and many thought it might launch before the end of the year, but it wasn’t meant to be. Blizzard announced just a few days later that the game was being delayed until early 2012.




User Comments: 11

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SammyJames said:

Well -- at least now we know what IS keeping our economy from utter ruin.

(No -- really -- I'm being 100% serious. I'm not being even a LITTLE bit sarcastic. NO REALLY -- I'm being totally, 100%, authentically serious here!!!)

Really.

No -- REALLY.

(I'm not kidding -- I have discussed this with a good friend of mine. He pointed out how the middle class in the U.S., which is responsible for keeping the PC alive for the better part of 40 years, has consistently bought both hardware and software for home use. This is our last, final, saving grace. Gamers do a lot of things that many people find to be useless or downright objectionable -- but the one thing that we DO do is we keep the economy going.)

Tell that to your mom or dad when they complain about how "much time [you] spend in front of that [expletive-deleted] screen playing those stupid games..."

Guest said:

I would just tell them i'm fighting Chinese farmers, and they would actually ask me how it went.

This was back during Lineage 2 days.

I miss those days...

Rasta211 said:

They got my money, it's because of Steam deals!

TomSEA TomSEA, TechSpot Chancellor, said:

And 3 billion of that is from me with those damn Steam sales.

red1776 red1776, Omnipotent Ruler of the Universe, said:

sammyjames said:

Well -- at least now we know what IS keeping our economy from utter ruin.

(No -- really -- I'm being 100% serious. I'm not being even a LITTLE bit sarcastic. NO REALLY -- I'm being totally, 100%, authentically serious here!!!)

Really.

No -- REALLY.

(I'm not kidding -- I have discussed this with a good friend of mine. He pointed out how the middle class in the U.S., which is responsible for keeping the PC alive for the better part of 40 years, has consistently bought both hardware and software for home use. This is our last, final, saving grace. Gamers do a lot of things that many people find to be useless or downright objectionable -- but the one thing that we DO do is we keep the economy going.)

Tell that to your mom or dad when they complain about how "much time [you] spend in front of that [expletive-deleted] screen playing those stupid games..."

...and then I would remind my son or daughter that 4.5 billion does not even rise to the threshold of 'negligible' as far as the economy goes. The impact of not knowing what that big shiny orb in the sky is, has a much bigger relative impact. Nice try though sammy.

aj_the_kidd said:

red1776 said:

The impact of not knowing what that big shiny orb in the sky is, has a much bigger relative impact

What is this red orb you speak of, i cant see it from the basement

SalaSSin said:

@ aj_the_kidd: He never mentioned any "red" orb, just that it's big & shiny. You sir, can give over your geek card.

Guest said:

Me being the pirate I am . .i spent lots of money on steam sales!

arrrhhhggg!!!

Richy2k9 said:

TomSEA said:

And 3 billion of that is from me with those damn Steam sales.

hello ...

agree ! totally ...

& we are the fuel that keeps that bonfire burning eternally ...

cheers!

SammyJames said:

Hmm... it appears as though I was off somewhat. I said something about the PC as being the savior of our economy. Apparently, it is Steam that is truly the responsible party here.

Go Steam!

thewind said:

Steam the only thing keeping our economy afloat! (besides Steve Jobs!) But he's gone (sad) so now we gota rely on Steam for all our money. You hear that Europe, China, Asia ect. Open your wallet and start buying games!

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