Video Game Spending Statistics - 2020 Increase

For anyone keeping up with the gaming industry – or observing global trends – over the last year, this information likely won’t be unexpected. Consumer expenditure on gaming experienced substantial growth throughout 2020 as people staying at home turned to games for entertainment and relaxation. This trend notably differs from many other areas of consumer electronics, where economic concerns led to reduced spending on non-essential items.

The most recent data released by NPD indicates a 25% increase in spending on gaming hardware, software, and accessories in December, and a 27% rise for the entire year. Specifically, hardware sales rose 38% compared to the previous year in December, reaching $1.35 billion, driven by the launch of new consoles from Sony and Microsoft.

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This represents the largest amount since December 2013, when sales reached $1.37 billion with the introduction of the Xbox One and PlayStation 4. Despite supply constraints affecting the latest releases, the Nintendo Switch led sales for the month, with the PS5 securing the second position. The Switch’s performance in 2020 was the second-best annual result for a console, following the Wii’s performance in 2008.

The Switch – which will be three years old this March – initially faced challenges due to limited stock. However, the release of a new Animal Crossing game significantly boosted its popularity, as individuals seeking social interaction found a new platform for gaming. This title ranked third for the year, trailing behind Call of Duty: Black Ops Cold War and Call of Duty: Modern Warfare (with the former also leading sales for December).