Ampere Analysis: Console market dipped to $56.2bn in 2022
Analytics firm notes that console subscription services were down by volume but spending was up by 5.6%
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A new report by Ampere Analysis estimates that spending on console games, hardware, and services declined in 2022, totaling $56.2 billion.
The Numbers:
- Global console spending: $56.2 billion, a decrease of 7.8% year-on-year
- Console game revenue: $32.6 billion, a drop of 9.3% year-on-year
- Game services spending: $7.8 billion, an increase to 5.6%
- Sony: 45% of the market share for all money spent on console games, hardware, and services
The Highlights:
The data and analytics firm attributed the gaming market's decline to supply chain shortages for the PlayStation 5 and Xbox Series X|S consoles.
Ampere Analysis' report notes that the PlayStation 5 reached an installed base of 30 million. Meanwhile, the lifetime sales of Xbox Series X|S units hit 18.5 million.
By comparison, the Nintendo Switch (which launched more than three years earlier) ended last year with an installed base of 119.5 million.
In the company's report, research director Piers Harding-Rolls said in part, "While there were some great games in 2022 that sold very well, there were also delays to major games that impacted the chance for premium games sales.
"A mix of a post-pandemic shift in consumer attention and the cost-of-living squeeze contributed to in-game spending softening from its high in 2021 as mainstream users dialed down their outlay."
In Ampere's assessment, Sony had the lion's share of the console market at 45%. Nintendo commanded 27.7%, while Microsoft controlled 27.3%.
The report attributes Sony's command of the console market to sales of the "relatively expensive" PlayStation 5 hardware.
Although the number of users subscribing to console subscription services was down, the firm said spending on subscription services was up thanks to the multi-tiered strategies of Microsoft, Sony, and Nintendo.
Additionally, the report said console game sales numbers fell 7% compared to 2021, with in-game monetization and downloadable content spending down almost 15%. Ampere attributed this to "more normal post-pandemic consumer behaviour and the macroeconomic backdrop."
Looking ahead, Ampere Analysis says that the sales gap between the PlayStation 5 and Xbox Series X|S consoles will grow in the first six months of 2023. It predicts that new Nintendo systems are poised to release near the end of 2024.
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