The results are in for another month, proving most of the games industry is still powering up and seemingly staying at home during what continues to be the most difficult of times. COVID-19 restrictions and major new releases from multiple publishers drove growth, which counteracted a slight dip in console sales during July.
U.S. video game sales tracking firm The NPD Group released its July 2020 domestic report this morning,. Overall movement is impressive from both a dollar sales and individual title standpoint, especially for new games from Sony and Nintendo plus catalog titles from 3rd party teams.
Let’s take a look at the trends and get some commentary going on monthly performance.
Note: NPD Group has adjusted its software tracking metrics, which means its three main categories are now as follows:
Video Game Hardware: Console and hardware sales.
Video Game Content: Previously dubbed Video Game Software. This now includes “total market Physical and Digital Full Game, DLC/MTX and Subscription consumer spending across Console, Cloud, Mobile, Portable, PC and VR platforms.”
Video Game Accessories: Self-explanatory, includes controllers, game pads, headphones and comparable gaming accoutrements.
United States Games Industry Sales (July 5th to August 1st):
Overall industry consumer spending jumped an impressive 32% in July compared to the same month last year, totaling $3.6 billion. When expanding to 2020 as a whole, total spend domestically is up 21% to $26 billion right now.
NPD Group Analyst, and online friend of mine, Mat Piscatella said this about overall performance in July: “Double-digit percentage spending gains in accessories, subscription, mobile and both digital full game as well as post launch spending on console and PC offset a slight decline in hardware.”
The largest contributor to last month’s results by far is Video Game Content, at $3.3 billion in dollar sales. This is an increase of 34% over July 2019. In particular the Digital segment within Content is expanding rapidly, showing growth of 41% year-on-year although no dollar amount or split was shared. I’d imagine physical is also showing resilience as we’ve seen with multiple earnings reports from big publishers around the world, though digital is certainly benefiting most from current conditions due to ease of access and retail closures.
As for individual software releases, PlayStation 4 exclusive Ghost of Tsushima solidified the number one spot on the overall chart. The latest action game from internal Sony studio Sucker Punch Productions, which I reviewed recently, is the developer’s fastest-selling to date, outpacing 2014’s inFAMOUS Second Son. Early momentum resulted in Ghost of Tsushima achieving the 4th best Sony-published launch in tracking history, immediately entering the 2020 to date chart as the 5th best-selling title. Sony shared that global unit sales hit 2.4 million within 3 days of release, consistent with my upbeat call on its commercial upside based on where the PS4 install base is at this point in the generation.
The other notable new release is Paper Mario: The Origami King, debuting at #3 on the combined chart plus numero uno on the Switch rankings. It set a new launch high for Nintendo’s Paper Mario franchise, beating the prior record-holder Super Paper Mario in 2007. Additionally, retail launch sales were more than double that of 2004’s Paper Mario: The Thousand Year Door. Its one of five Nintendo titles within the Top 10 in July, the next highest being the commercial breakout hit Animal Crossing: New Horizons which this quarter became the second top seller ever on Nintendo Switch at an absurd 22.4 million global unit sales as reported earlier this month.
Additional contributors to software growth include another PS4 hit The Last of Us: Part 2, which ranked #4 and has now achieved the 3rd highest lifetime sales ever for a game published by Sony behind Marvel’s Spider-Man and God of War both from 2018. Ring Fit Adventure, Nintendo’s fitness entry, continues to have legs due to high consumer demand and increased stock as it climbed to the 7th spot. Rounding out the Top 10 was a surprising one to me, Sword Art Online: Alicization Lycoris from Bandai Namco. It’s the best ever placement for a game in the series to date, since Sword Art Online: Fatal Bullet hit #14 in 2018. The game also achieved the 3rd spot on the Xbox One’s individual chart, behind only heavy hitters Call of Duty: Modern Warfare and Mortal Kombat 11.
Software and additional content really are carrying the industry with lockdowns still in place around the country, proving a smart way to pass the seemingly endless time. Below are the general charts.
Top-Selling Games of July 2020, U.S. (Physical & Digital Dollar Sales):
- Ghost of Tsushima
- Call of Duty: Modern Warfare
- Paper Mario: The Origami King*
- The Last of Us: Part 2
- Animal Crossing: New Horizons*
- Ring Fit Adventure
- Mortal Kombat 11
- Mario Kart 8 Deluxe*
- Super Smash Bros. Ultimate*
- Sword Art Online: Alicization Lycoris
- Minecraft: PS4 Edition
- The Legend of Zelda: Breath of the Wild*
- Tom Clancy’s Rainbow Six: Siege
- New Super Mario Bros. U Deluxe*
- MLB: The Show 20
- Star Wars Jedi: Fallen Order
- Need for Speed: Heat
- Marvel’s Spider-Man
- Assassin’s Creed: Odyssey
- Call of Duty: Black Ops 3
Top-Selling Games of 2020 So Far, U.S. (Physical & Digital Dollar Sales):
- Call of Duty: Modern Warfare
- Animal Crossing: New Horizons*
- The Last of Us: Part 2
- Final Fantasy 7 Remake
- Ghost of Tsushima [New]
- Dragon Ball Z: Kakarot
- MLB: The Show 20
- Resident Evil 3 Remake
- Mario Kart 8 Deluxe
- Mortal Kombat 11
In really the only lackluster category result of July, Video Game Hardware saw consumer spend decline 2% to $166 million. This is showing that most people have already purchased the current generation systems, are waiting for more news on discounts going into next generation or even holding off until Xbox Series X and PlayStation 5 before making a move. The upside is for 2020 as a whole, spending hit $1.8 billion which is an increase of 22% versus this same time frame last year. Mainly driven by strength in Switch, especially during the height of Animal Crossing: New Horizons buying.
Speaking of, Nintendo Switch was yet again the top-selling piece of hardware during July 2020. Nintendo’s hybrid offering has topped the list every month since November 2018. Which means it remains the best-selling console for 2020 as well, naturally.
Finally, Video Game Accessories accounted for the remaining $170 million in monthly sales which is actually a July month record. This figure is 34% higher than July 2019. Gamepad and headsets in particular set July records, although no specific number was attached. Reminiscent of when Fortnite was at its height of popularity, though not the same type of sizeable dollar amounts.
Stepping back to view July domestic sales overall, it’s not another ridiculous month like we saw during say March or the April. It’s still an exciting result for total industry spend, growing double-digits again for the the fifth consecutive month, plus featuring titles like Ghost of Tsushima and Paper Mario: The Origami King with steady demand to set select, more focused records.
Gaming is the type of entertainment that continues to be a great option for people that perhaps thought the country would be more open than it is due to lingering effects of COVID-19. I’ll take this time again to thank those people working hard to keep the States going, whether in medical, retail or other essential fields, and hope that games are able to lift the burden and provide a brief respite when not on the grind.
Hit up NPD Group’s lists and Mat Piscatella’s thread on Twitter for additional deets on July’s report. Stay safe, all. Thanks for stopping by.
*Digital Sales Not Included
Sources: Nintendo, The NPD Group, PlayStation Twitter.
-Dom
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