Video Games in the US

PRE-COVID-19 PERFORMANCE

No end in sight for surge in popularity of mobile games

The market for video games in the US has historically been dominated by the release of console and online games, with mobile games being viewed as an inferior form of video gaming. However, this stigma has been changing slowly over the past three years and mobile gaming has become more accepted by gamers and the general population.

COVID-19 accelerates shift towards E-commerce sales

The shift of consumers towards e-commerce channels and retailers has been accelerated further due to the coronavirus pandemic. Before the pandemic and home seclusion mandates, consumers were already buying video game software and hardware online.

Nintendo releases Switch Lite and sets record high holiday sales

Switch Lite was recently released by Nintendo and has been received very well by consumers in the US. The company has been able to continue increasing sales of its original Switch range as well, without any cannibalisation.

2020 AND BEYOND

COVID-19 impact

In 2020, sales of video games are now expected to grow by 10% in constant 2019 value terms. This represents an increase from the 5% rise in sales forecast in our 2019 edition of toys and games.

Affected products within video games

During the year as a whole, sales of mobile games are expected to record dynamic growth as it is cheaper to buy and play such games without spending on hardware. They are also quick and easy to buy as they can be obtained instantly without having to leave the home and visit a physical store, which is particularly significant in light of the closure of non-essential stores in Q2 2020.

Recovery and opportunities

Video games will continue to see strong growth over the forecast period, in line with rising demand for video games hardware, both hand-held and static consoles. As most consumers bought Nintendo Switch Lite and Nintendo Switch shortly after their launch, demand is expected to be lower over the forecast period, with most consumers who want one already owning a console and standing by for the latest games releases.

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