Video Games in Spain

2020 IMPACT

Video games sees growth in 2020, but at a slower rate than previously as a result of economic instability and restrictions on advertising

While constraints on household budgets during the pandemic had an adverse effect on demand, nevertheless video games maintained robust growth in Spain in 2020. Indeed, home seclusion bolstered consumer interest in video games, which allowed people to maintain contact with others and engage in play with their friends, family and other gamers at a physical distance.

Nintendo Ibérica SA takes the lead ahead of Sony thanks to the popularity of Pokémon and Nintendo Switch Lite

Nintendo Ibérica SA overtook rival Sony Computer Entertainment España in 2020 to lead video games and indeed toys and games overall in Spain, gaining considerable ground thanks to the strong performance of Pokémon the launch of the Nintendo Switch Lite hand-held console in late 2019. Both players have increasingly invested in streaming platforms as they target the growing demand for video games software in digital formats and multi-player gaming.

Digital formats see the strongest growth rates, benefitting from streaming and fierce price competition

Efforts to control the spread of COVID-19 had a significant impact on video games in 2020 as home-bound consumers increased the amount of time they spent gaming. Digital formats, in particular, benefitted from the closure of non-essential physical stores and social distancing measures.

RECOVERY AND OPPORTUNITIES

Video games will see growth in the coming years, but performance will vary across subcategories as consumers move toward digital formats

Overall, video games will benefit from an expanded consumer base and see healthy growth across the forecast period, although performances will vary across its subcategories. However, ongoing constraints on household budgets due to the economic impact of the pandemic may hamper sales to some extent.

Investment in streaming, free-to-access and esports will bolster growth in several areas

The trend towards digital formats will be bolstered by increasing investment in streaming platforms by the major players such as Sony, Nintendo, Microsoft and Google, and the further use of strategies such as free access to games in digital formats in order to generate sales through in-game content. These strategies will also bolster the development of in-game sales, which are set to continue to rise across digital computer and console games, online games, and mobile games over the forecast period.

E-commerce will continue to dominate the retail landscape as the trend toward digital shopping experiences continues apace

It is no surprise that e-commerce consolidated its dominance of video games distribution in Spain in 2020. The channel will continue to benefit from growing consumer confidence in purchasing goods via e-commerce shops and expanding product portfolios across e-commerce retailers.