The U.S. video game industry saw a notable 10% increase in spending this July compared to the same time last year, according to Circana's latest report.
This resurgence was evident across all categories — hardware, content, and accessories — indicating a market bouncing back from previous declines.
According to GamesIndustry.biz, in July 2024, total video game sales reached $4.77 billion, a solid increase from the $4.35 billion reported in July 2023.
Year-to-date figures also reflected positive momentum, with total sales reaching $32.09 billion, marking a 2% growth compared to the previous year. These figures show a revival in consumer engagement, likely driven by highly anticipated releases and the promise of new hardware on the horizon.
Among the top drivers of this upswing is Electronic Arts Inc's (NASDAQ:EA) EA Sports College Football 25, which Circana identified as the best-selling game of the year, so far.
However, the industry's overall outlook for 2024 remains cautious. Mat Piscatella, video game industry advisor at Circana, pointed out: "This will continue to be a difficult year for video game manufacturers and publishers, as an overall spending decline, albeit in the low single-digits, is expected."
A New Gaming Era: 2025 and Beyond
Circana's Future of Video Games Report paints a more optimistic picture for 2025, predicting a significant rebound. This positive forecast hinges on the launch of Nintendo ADR's (OTC:NTDOY) next-generation hardware platform and the highly anticipated release of Take-Two Interactive Software Inc's (NASDAQ:TTWO) Grand Theft Auto 6, which Piscatella believes could become "the biggest entertainment launch in U.S. history."
Digital delivery continues to be a strong trend, with Circana projecting ongoing dominance in this area. The report notes that "forever" games like Fortnite and Roblox will continue to capture significant player time, potentially reshaping how new titles compete for attention.
Hardware Declines Offset By Emerging Trends
While video game hardware revenue is expected to decline this year due to lower average prices and fewer units sold, Circana highlights an interesting shift.
More players are turning to easily accessible platforms such as PCs and mobile devices, helping to cushion the blow to traditional console sales. The report explicitly mentions Valve's Steam Deck as an "emerging and exciting area of video game hardware."
"The transition to the new normal in the video game market has not been painless," Piscatella added. Still, he remains confident about the long-term prospects: "The long-term outlook remains optimistic, with 2025 in particular carrying significant growth potential."
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