New numbers from NPD confirm what we’ve known for a while: The first quarter of 2020 was a very good one for gaming companies. The new report notes that sales hit a record $10.86 billion in the States between January and March of this year, marking a 9% increase over a year prior; $9.58 billion of that figure was from video game content.
The primary driver is, you guessed it, COVID-19. As stay at home orders have been enacted on the federal and state levels, people are coping with the ongoing daily horror that is life in 2020 by playing video games. Lots and lots of video games.
Nintendo sells a lot more Switches, as people stay at home playing Animal Crossing
Here’s NPD’s Mat Piscatella further confirming our suspicions: “Video Games have brought comfort and connection to millions during this challenging time. As people have stayed at home more, they’ve utilized gaming not only as a diversion and an escape, but also as a means of staying connected with family and friends. Whether it was on console or mobile, PC or virtual reality, gaming experienced play and sales growth during the first quarter.”
According to NPD's Q1 2020 Games Market Dynamics: U.S. report, overall total industry consumer spending on #videogaming in the U.S. reached a record $10.86 billion in the first quarter of 2020 (Jan. – Mar.), an increase of 9 percent compared to the same time period last year.
— NPD Games (@npdgames) May 15, 2020
That last bit is, in part, key to many consumers’ choice of game titles. As already noted by the firm, Animal Crossing: New Horizons had its own record-setting first quarter. That, in turn, helped drive Switch sales, in spite of Nintendo’s well-documented supply issues. The title arrived just in the nick of time for stay at home orders in the U.S., delivering a kind of front-facing social experience that much of the competition lacks. Also, turnips.
We need more video games that are social platforms first, games second
Matter of fact, the Switch’s success actually helped supplement losses of other platforms. Microsoft and Sony will no doubt make up gains at the end of the year with their next-gen consoles. For now, however, many consumers are likely holding out until their holiday arrives to invest in Xbox or PlayStation hardware, in spite of the pandemic. The U.S.’s soaring unemployment rate no doubt also had an impact on the industry’s bottom line.
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