Switch, Call of Duty & Mobile Boost U.S. Games Industry Spending to Record $60B in 2021

Anything going on lately in gaming?

Joking, of course. It’s been a busy time in what’s proving to be a most rambunctious year already for industry news. Last week Take-Two Interactive announced its $12.7 billion purchase of Zynga in what was, at the time, the biggest deal ever for gaming. Not to be outdone, Microsoft dropped a megaton this past week on how it’s going to pay a whopping $68.7 billion in cold hard cash to buy Activision Blizzard.

Oh. Consumers also spent a record amount of money on video games in the U.S. during 2021. No biggie!

While I’ll cover the Microsoft and Activision Blizzard news more in the future starting with the former’s earnings report next week, this here article is my recap of the final monthly report of 2021 from industry tracking firm The NPD Group.

And a standout report, it was. December’s over $7.5 billion in consumer spending on games during the holiday season resulted in an all-time annual high of $60 billion. Backing into the global share using recent data from Newzoo, the U.S. was almost exactly one-third of global games industry dollar spending.

Underlying this 8% domestic spending growth for the full year was consistency in mobile, subscription growth, hardware acceleration during this latest generation plus major software franchises at the top like Call of Duty, Madden NFL and the ever-present Pokémon.

As a quick reminder, there are three categories tracked broadly by The NPD Group: Content, Hardware and Accessories. Content as the largest includes game sales plus mobile spend, downloadable content (DLC), in-game transactions and subscriptions. Hardware measures console sales while Accessories comprises all the physical peripheral items. All three saw some level of growth during 2021.

The Content category rose 7% year-on-year and comprised over 85% of annual games industry sales. Like its trend globally, mobile had a significant impact as the report mentioned December was the best month ever for mobile spend. Content also benefited from two Call of Duty titles atop the yearly software chart, new sports game launches, various catalog releases in the top ranks and ongoing subscription momentum.

Hardware was the only mega category with double-digit gains in 2021, led by Nintendo Switch as its top seller and bolstered of course by PlayStation 5 and Xbox Series X|S production, the latter of which has edged up slightly for its Xbox Series S model during the holiday push. Demand is thriving, and supply is doing its best to catch up.

The smallest category of Accessories also saw the lowest annual growth at 2%, showing some resilience even as it’s harder to make both consoles and devices lately due to chip production limitations. Game pads from PlayStation and Xbox led the charge.

Briefly focused on the December month alone, overall spending fell ever so slightly at 1%. Content was essentially flat, Hardware moved 3% lower while Accessories took the biggest hit with nearly a double-digit dip. Premium game sales declined to the point where subscriptions and recurring revenue weren’t enough to offset during the month. Hardware was trying its best to match holiday demand, no doubt pressured by shortages.

“Hardware revenues in December across the three lead platforms [were] very close,” wrote The NPD Group’s Mat Piscatella on Twitter. “All are finding great success and strong demand. Switch [was] off its peak, but still leading.”

It’s a lot to take in between annual and monthly figures. No time like the present!

United States Games Industry Sales (November 28th, 2021 – January 1st, 2022)

For December, total spend on the domestic games market hit that $7.54 billion figure which was a slight decline from the highs of last year’s $7.63 billion. Expanding to full-year 2021, the impressive record $60.4 billion level was 8% higher than 2020.

First, I’ll address the leading segment of Content spending. Content reached $5.73 billion, or 76% of the whole, the same dollar amount as December 2020. Across all twelve months of 2021, Content produced $51.7 billion compared to $48.1 billion prior year.

Mobile, subscriptions, micro-transactions and downloadable content bolstered the growth. While there are select brand new titles atop the charts, legacy titles from prior years remain and people are spending a lot for new stuff in their favorite older experiences.

The report prominently highlights mobile as a catalyst, increasing 14% for the full year after an excellent December for the sub-category. The best December ever, actually. It was also the 10th straight month where mobile eclipsed $2 billion in spending, which happened every month in 2021 except February. While the report doesn’t provide mobile game rankings, it cited Candy Crush Saga, Roblox, Coin Master, Garena Free Fire plus Pokémon Go among the year’s top earners.

Swapping over to results for more traditional software releases. Call of Duty: Vanguard topped December’s overall chart. That and 2020’s Call of Duty: Black Ops Cold War tag-teamed the year’s Top 2 spots, like last year with Black Ops Cold War and 2019’s Call of Duty: Modern Warfare. Activision Blizzard’s military multiplayer shooter series has now led annual software spending for 13 years in a row.

Looking back based on my research, the last time a non-Call of Duty title led the annual software chart was 2009 when Wii Play landed at number one. Note that back it was measured by unit sales as opposed to dollar revenue. At the time, all three best-sellers launched on Nintendo’s Wii console. Those were the days!

Microsoft’s Xbox exclusive Halo Infinite reached the second spot during its debut month of December, proving once again that Xbox Game Pass launches supplement premium sales as opposed to cannibalize them. It was the month’s best-selling title on both Xbox and PC platforms. There’s no word yet on player counts or engagement for Halo Infinite, and it’s difficult to compare directly to prior debuts because of its staggered roll out on the subscription service. Just for the sake of documenting it, Halo 5 Guardians led its launch month of October 2015 while Halo 4 on Xbox 360 started at #2 in November 2012. All very similar ranks.

Next up was Pokémon Brilliant Diamond & Shining Pearl, which captured the third spot for the second consecutive month after launching in November. Not only that, but it also ended the year as 2021’s fourth best-selling game. All of these without even considering its digital portion since Nintendo still doesn’t share it. Pokémon franchise retail software dollar revenue had its best year in over two decades, since 2000! Incredible.

During the latter part of the National Football League (NFL) season here in the States, Madden NFL 22 ranked fourth on the December chart and third for 2021. Electronic Arts’ football sim named for the late great John Madden (Rest in Peace) was the best-selling sports title of the year in the U.S. for a second straight year.

One major trend within the 2021 best-sellers was older games that many people kept on buying. Especially alongside new purchases of a Nintendo Switch console. There are several repeats from last year. Seven games among the Top 20 to be exact. Three of these in Mario Kart 8, Mortal Kombat 11 and Super Smash Bros. Ultimate also charted during 2019. Talk about evergreen, as in ever making a lot of green for publishers.

Check below for full lists for December and 2021 plus more commentary on the additional categories.

Top-Selling Games of December 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Vanguard
  2. Halo Infinite
  3. Pokémon Brilliant Diamond & Shining Pearl*
  4. Madden NFL 22
  5. Battlefield 2042
  6. Mario Kart 8*
  7. Marvel’s Spider-Man Miles Morales
  8. Mario Party Superstars*
  9. NBA 2K22*
  10. Animal Crossing: New Horizons*
  11. FIFA 22
  12. Super Smash Bros. Ultimate*
  13. Minecraft
  14. Far Cry 6
  15. Just Dance 2022
  16. Forza Horizon 5
  17. Marvel’s Guardians of the Galaxy
  18. Ghost of Tsushima
  19. Super Mario 3D World + Bowser’s Fury*
  20. The Legend of Zelda: Breath of the Wild*

Top-Selling Games of 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Vanguard
  2. Call of Duty: Black Ops Cold War
  3. Madden NFL 22
  4. Pokémon Brilliant Diamond & Shining Pearl*
  5. Battlefield 2042
  6. Marvel’s Spider-Man Miles Morales
  7. Mario Kart 8*
  8. Resident Evil Village
  9. MLB The Show 21^
  10. Super Mario 3D World + Bowser’s Fury*
  11. Far Cry 6
  12. FIFA 22
  13. Minecraft
  14. Animal Crossing: New Horizons*
  15. NBA 2K22*
  16. Assassin’s Creed Valhalla
  17. Super Smash Bros. Ultimate*
  18. Back 4 Blood
  19. Mortal Kombat 11
  20. Forza Horizon 5

As seen in my many monthly report recaps including those starting around the holiday season, Hardware movement is the story as that new generation cycle continues. While December was a down month, 2021 more broadly saw a double-digit boost for console revenue.

Strictly speaking on December, Hardware dollar sales lowered 3% to $1.32 billion. Spending on consoles pushed past $6 billion for full year 2021, rising 14% and exhibiting the best growth across all three major categories.

Fitting the trend of recent years, Nintendo Switch topped December console sales when measured by units sold. As it’s done for 36 of the last 37 months on record, with September 2021 being the only time over that period when it lost to Sony’s PlayStation 5.

Speaking of PlayStation and looking at dollar sales instead during the holiday month, The NPD Group said Switch effectively tied with PlayStation 5. Which makes sense given the latter’s more premium price point and lower unit volume.

“Hardware revenues in December across the three lead platforms [were] very close,” Piscatella wrote. “All [are] finding great success and strong demand. Switch off its peak, but still leading.”

As I had predicted what feels like many years ago back in January 2021, Switch ended the year as the best-selling console domestically by both unit sales and dollar sales. The resilience is spectacular as Nintendo uses the multiple model approach to attract new buyers and entice existing owners to snatch up another hybrid console for their household. That’s one of the company’s ultimate goals: Multiple Switches in a single home. And it’s working.

There wasn’t much color around PlayStation 5 and Xbox Series X|S on an annual basis. Based on monthly trajectory and broader dynamics, I assume PlayStation 5 was second place and Xbox platforms took third. Right now, it’s solely dependent on who can produce more boxes.

Though the gap isn’t as wide as last generation. Global shipments for PlayStation 5 totaled 13.4 million at Sony’s last earnings call. Xbox’s recently-promoted CEO of Microsoft Gaming Phil Spencer told The New York Times that Xbox Series X|S is the fastest-selling Xbox ever, which prompted trusted friend and Niko Partners Senior Analyst Daniel Ahmad to estimate 12 million units shipped worldwide. Console competition is healthy!

For our final category of Accessories which includes things like controllers and headsets etc, a weaker December wasn’t enough to offset earlier year gains.

December monthly spending reached $493 million, which was 9%$ lower than $540 million generated this time last year. However, the segment gained 2% to $2.65 billion when looking at the year overall compared to the $2.61 billion of 2020. While the annual rise wasn’t as pronounced as its counterparts of Content and Hardware, it certainly benefited from that growth as buyers grabbed additional items to use with their new consoles.

Microsoft’s fancy Xbox Elite Series 2 wireless controller was the best-selling accessory in December, seemingly a hot holiday gift item for core gamers. On the year, Sony’s PlayStation DualSense white game pad was the strongest seller no doubt bolstered by that hardware expansion.

One area I don’t often cover in these reaction articles is virtual and augmented reality (VR/AR). Sales of this hardware sub-category and related accessories more than doubled in the time between Thanksgiving (November 21st) and Christmas (December 25th). That’s based on both units and dollars, which rose 180% and 153% respectively.

2021 sales for VR/AR products in the U.S. moved up 163% in unit sales and 137% on revenue generated. Piscatella noted specifically how Meta’s Oculus Quest had a “big” month to close out 2021.

So. That’s the scoop on U.S. games industry spending in the year that was 2021. Even if the holiday period softened year-on-year, even with supply constraints on hardware, even given several delays for software, earlier months picked up the slack to achieve that record spending amount. Demand was way high. Spending reflected that.

Mobile, subscriptions, Call of Duty and Nintendo Switch told the story domestically last year as services grew in popularity and people kept spending on entertainment’s most lucrative segment that is gaming.

If the current slate of premium releases holds and hardware expectations continue, 2022 is going to be a tricky one with major upside especially for mobile, subscription revenue and ongoing sales. Flagship titles from PlayStation and Nintendo plus Microsoft’s non-stop investment moves alongside other huge publishers like Tencent expanding globally, I’m seeing a lot of potential for premium game spending. It’s hardware supply that will continue to be a major question mark.

“The pool will continue to grow as the industry offers more options in what to play, where to play and even the ways in which to engage, Piscatella said. “Getting to growth is no small feat after 2020, [the] future remains incredibly bright for the market.”

I’m very much looking forward to more monthly recaps in 2022. In the meantime, please check out my predictions piece to read more about the future of gaming and what trends we’ll see in these spending reports in the next twelve months.

Be safe and well, all!

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Comparisons are year-over-year unless otherwise noted.

Sources: Daniel Ahmad, Getty Images (Photo Credit), The NPD Group, Sony Corp.

-Dom

U.S. Game Sales Decline Double-Digits in November in Difficult Hardware Supply Environment

The super important November month and Black Friday shopping seasons have come to a close, and United States sales numbers are in from The NPD Group for the video game industry!

And it was a mixed one, for a variety of reasons. That can happen when the prior year was a record, I suppose.

Last month had consumer spending down double-digits overall with declines experienced across all three major categories of Content, Hardware and Accessories. Which is understandable, considering how last year was a best-ever November and the global semiconductor shortage continues to dampen all sectors of consumer technology.

Hardware took the biggest hit with gaming console sales down nearly 40% to the lowest November level since this time in 2016. Nintendo Switch is still the standout, with the company sharing how its hybrid system sold over a million console units in the month alone. That combines all devices in the family, including the latest OLED iteration. Which, fitting with the month’s general trend, is still lower than the 1.35 million achieved in November 2020.

There’s just limited inventories across the board within Hardware, especially for new generation Microsoft Xbox Series X premium model plus Sony’s PlayStation 5 family. One bright spot is the aggressively-priced Xbox Series S version has been available at various retailers, resulting in Xbox Series X|S reaching second place in the Hardware ranks for the first time in a while.

Speaking of software, services and subscription sales as part of the bigger Content category, spending focused on mobile, military first-person shooters, Pokémon remakes and the latest Forza car game from Xbox Game Studios.

Brand new titles occupied four of the top five spots on the general software ranking: Call of Duty: Vanguard led, Battlefield 2042 up next, Pokémon Brilliant Diamond & Shining Pearl snatched up #3 then Forza Horizon 5 finished in fourth. The first three of these entered the year’s best-sellers list with just the single month on record.

Mobile, consistent as ever, generated over $2 billion in spending for the ninth consecutive month. There’s only two months in 2021 where this particular source hasn’t reached that threshold.

The last broad category of Accessories saw similar declines in November dollar sales, about 20% lower than a year ago. Steering Wheels at least showed great upside, their popularity driven mainly by a Forza release. Read on for more puns later in the piece!

“It is much harder to find a console to buy this holiday,” said The NPD Group’s Mat Piscatella. “Hardware sales [are] limited by supply, and the console with the most units in market is going to lead in sales, perhaps for a while.”

I hope those here in the States that celebrated had a safe, happy Thanksgiving. Then, everyone both domestically and overseas had a good month despite confronting the challenges of COVID-19’s Omicron variant and likely still having to attend those Zoom meetings from home while juggling that precious work-life balance. For those that can, take advantage of vaccinations for teens and kids plus booster shots for adults! It’s for the benefit of all.

Read on below for a look at spending data plus software charts, then see who can spot the worst “jokes” of all.

United States Games Industry Sales (October 31st, 2021 – November 27th, 2021):

Within The NPD Group’s monthly report, the firm said spending across the U.S. games industry last month reached just under $6.3 billion or a decline of 10% since the record high of almost $7 billion in November 2020.

While Content sales are mostly showing resilience, hardware was mainly behind the dip as this time last year both Microsoft and PlayStation launched their latest consoles. Positive areas like subscription and mobile spending weren’t enough to offset lower results in console hardware and accessories, the former certainly restricted by input part scarcity. Plainly, the biggest manufacturers weren’t able to make enough consoles to satiate buyer demand.

Good news is 2021 taken as a whole is still ahead of last year. Year-to-date approached $53 billion in November, which is 9% growth against the $48.5 billion of the same 11-month period in 2020. Basically, despite a more supply-constrained and softer software holiday quarter so far, the year is in high single-digit growth territory and moving towards another potential record result.

The Content category, software and the like, accounted for $5.14 billion in consumer spending. That’s 82% of November’s total, and a slight decline of 1% versus a year back. When expanding to 2021 so far, Content sales have risen 8% to breach past the $46 billion threshold. Which is 87% of the year’s overall spend.

A main contributor here continues to be mobile, which grew 11% in November and accounted for that “at least $2 billion” figure I referenced earlier. Smartphone titles Candy Crush Saga, Coin Master and Roblox among others propelled revenue. Though The NPD Group, in collaboration with Sensor Tower, doesn’t publish full mobile charts.

For console and PC gaming, some of the biggest blockbusters of the year launched last month and occupied the highest spots on the overall software chart.

Unsurprisingly, Call of Duty: Vanguard tops the list. As a game within the Activision Blizzard-published military shooter series has done during its launch month for a whopping 14 years straight since Call of Duty 4: Modern Warfare started the trend in November 2007.

Even considering the single month on market, Vanguard is already the year’s second best-selling game on the combined chart. Behind only last year’s Call of Duty: Black Ops Cold War. It’s unclear how Vanguard compares to prior titles on dollar sales. I have a question out to The NPD Group for context, I imagine they may not be able to answer publicly.

Oh. More importantly, Activision Blizzard management fostered and even participated in workplace toxicity plus various forms of harassment, employs a torture apologist on its board of directors and is now trying to stifle employees from collective action. CEO Bobby Kotick, among others, should be ashamed. And fired.

Back to the rankings, Battlefield 2042 landed at the second spot during its initial month on market, That’s one above where Battlefield V began in November 2018, and one below where October 2016’s Battlefield 1 launched at the top position. (No, there weren’t three other games in the war epic shooter between those. It’s just Electronic Arts with its confusing naming convention.) The title developed by DICE secured the second spot on both Xbox and PlayStation respectively and is already the sixth best-seller for 2021 as a whole. Again, no comparison details to prior titles available that I could find.

Switch exclusive Pokémon Brilliant Diamond & Shining Pearl secured third place, and that’s excluding digital sales since Nintendo doesn’t participate in that portion of reporting. The Generation IV remakes in the long-running brand immediately became the 8th best-seller on 2021’s list, and of course led Switch platform ranks.

One of the biggest success stories remains Forza Horizon 5, ranking fourth on the total software chart and third on Xbox behind only Call of Duty and Battlefield. Importantly, this didn’t include Xbox Game Pass subscriptions. Which supports the notion that services can enhance sales rather than cannibalize them. The excellent open world driving title from Playground Games zoomed off the starting line, attracting 10 million players during its first week alone in the largest first-party launch for Xbox in its 20-year history.

Familiar titles like Madden NFL 22, Mario Party Superstars and Marvel’s Guardians of the Galaxy helped round out the Top 10. Ubisoft’s Just Dance 2022 was the next new release at #11, while Japanese role-playing game Shin Megami Tensei V from Atlus debuted at #16. Note that the latter does not include downloads, which means its upside was even greater.

With just one month left in 2021, Call of Duty: Black Ops Cold War is currently in pole position with Call of Duty: Vanguard on its heels and Madden NFL 22 in third place. Will Vanguard shoot past its predecessor? Well it certainly should, taking into account holiday sales, however it’s far from guaranteed. Which would be an anomaly in recent memory, telling a clear narrative of diminishing full game sales for the series this year.

For now, here’s November’s full results.

Top-Selling Games of November 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Vanguard
  2. Battlefield 2042
  3. Pokémon Brilliant Diamond & Shining Pearl*
  4. Forza Horizon 5
  5. Madden NFL 22
  6. Mario Party Superstars*
  7. Marvel’s Guardians of the Galaxy
  8. FIFA 22
  9. Far Cry 6
  10. NBA 2K22*
  11. Just Dance 22
  12. Mario Kart 8*
  13. Marvel’s Spider-Man Miles Morales
  14. Animal Crossing: New Horizons*
  15. Back 4 Blood
  16. Shin Megami Tensei V*
  17. Minecraft
  18. The Legend of Zelda: Breath of the Wild*
  19. Super Smash Bros. Ultimate*
  20. Ghost of Tsushima

Top-Selling Games, 2021 To Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Call of Duty: Vanguard
  3. Madden NFL 22
  4. MLB: The Show 21^
  5. Resident Evil: Village
  6. Battlefield 2042
  7. Super Mario 3D World + Bowser’s Fury*
  8. Pokémon Brilliant Diamond & Shining Pearl*
  9. Marvel’s Spider-Man Miles Morales
  10. Far Cry 6

The most newsworthy of categories lately is Hardware, and November’s numbers showed a heightened impact from tough supply situation.

“It’s all about stock. The console with the most units in market will lead the charts,” Piscatella said. “[This] will likely be the case for a long while.”

In what was the most pronounced monthly decline of the three segments, Hardware sales declined 38% to $883 million. That’s the lightest November outcome since 2016’s $759 million. Last year’s figure was over $1.4 billion in the corresponding month, an all-time high established as both PlayStation 5 and Xbox Series X|S began their life cycles plus Nintendo Switch carried major software momentum into the holiday quarter.

Speaking of Switch, it was the top-selling gaming console in November as measured by both unit sales and dollars earned. (Basically, my prediction last month was half correct. Or half wrong, depending on one’s outlook. I’ll try to stay positive!)

Nintendo announced Switch sold 1.13 million units in November, 550K of which happened during Black Friday week. Note that last year’s November monthly unit sales figure was 1.35 million, which implies a decline of 16%. Still, Switch has now led on unit sales during 35 of the last 36 months, losing only September 2021 to a push from Sony’s PlayStation 5.

“As we head into 2022 and the sixth year of Nintendo Switch, the system continues to see strong demand,” said Nintendo of America President Doug Bowser in the company’s press release.

Now that there’s a full year of data on the new consoles, it’s clear that supply is dictating performance more than ever. Essentially, whichever console manufacturer produces more boxes is winning right now as Piscatella alluded. Nintendo’s November win was no doubt driven by OLED model production as its premier product, its first full month on market since launching in October. This phasing of the original model is enticing owners to upgrade or purchase an additional system.

Another noteworthy topic from last month’s report is how Microsoft’s Xbox Series X|S platform landed in second place within hardware by units and dollars. Recently it’s been lower than competitors, and I am pretty sure the last time it actually led was June 2021 when it set a record for the brand. This time, it’s a combination of higher Xbox Series S availability and the attraction of Forza Horizon 5.

Now the details are fuzzy, from I gather it’s a substantial away from Switch mainly based on comments from Niko Partners analyst Daniel Ahmad. His claim is combining Xbox Series X|S and PlayStation 5 sales for November are barely equivalent to what Switch generated alone. Which is a bit surprising to me, given how all are based on similar components and existing within a consumer tech space that’s reliant on part sourcing.

Even further, Ahmad points out a quite intriguing historical statistic in how PlayStation 4, Xbox One and Nintendo Wii U sold more in November 2014 than the current three corresponding consoles did last month. I think that drives home the limited stock right now better than any quote or commentary.

So, in a rare occurrence, PlayStation 5 brings up the rear during one of the calendar’s most intense months of commercial competition. Hardware overall was down against a record high in November 2020, still it’s lower than it probably should be a year into a brand new console generation. Bad news is the chip environment isn’t expected to change any time soon, so we should brace for further distribution limitations.

Last category to cover for November is Accessories, which also dipped almost in lockstep with its Hardware counterpart. It’s still approaching record territory for 2021 as a whole, plus one sub-segment in particular saw a substantial improvement.

Consumer spending on Accessories contracted 20% to $258 million, down from $324 million last year. It’s the lowest November month figure since back in November 2017, when segment spend was $243 million.

On the bright side, revenue for the first 11 months of the year is certainly more positive and actually currently at a record $2.18 billion. Which is an upward trend of 4% compared to this time in 2020, the prior record holder.

Clearly November was, hm.. fueled by the start of Forza Horizon 5. Steering Wheels in particular drove a substantial boost. Consumer purchasing on this sub-category more than doubled, with the Logitech G920 Driving Force Racing Wheel for PC and Xbox platforms leading the pack.

Could I possibly squeeze any more racing terms into a single section? Perhaps. I clearly peeled out and road the momentum this far!

Alright. Enough of that.

All in all, November is always an eventful time for the commercial side of gaming, the biggest publishers and data nerds covering the industry. This year paints a slightly different story than most monthly reports this year, which have been overwhelmingly positive. It’s a comparison against a massive, record-breaking month in November 2020 amidst a most challenging hardware situation, which explains the difference.

This hardware availability impacts everything from new software buyers, spenders on ongoing games over time plus especially the purchasing upside of accessories. When someone scoops up a fancy new generation console, they often buy a headset or additional controller at the same time. Without a box to find, there’s less incentive to spend on the latest peripherals.

That said, I’m very much looking forward to the finale of 2021 in December’s data. The biggest exclusive title is Xbox’s Halo Infinite, as both Sony and Nintendo aren’t pushing any massive budget first-party projects other than those that are already on sale.

I’m wildly bullish on Halo Infinite’s engagement prospects, sharing on social media how I expect at least 15 million players around launch which should drive the science-fiction shooter to one of the top spots on December’s combined software list behind the likes of at least Call of Duty: Vanguard and a sports game or two that find popularity during the holidays.

On the multi-platform side, Take-Two Interactive has the physical release of Grand Theft Auto: The Trilogy – The Definitive Edition (yes, that’s a real title and way too long to type more than once) since it was only out in digital form during November. Otherwise, it’s a relatively light end-of-year calendar for triple-A studios.

December’s report will have 2021’s annual data, which is trending towards a year of growth, especially for hardware’s performance before the supply constraints worsened. During 2020, consumers spent a record $57 billion across the games industry. 2021 is already at $53 billion, growing almost 10% as of November like I mentioned earlier in the piece. Last year’s December was $7.7 billion, which means next month only needs $4 billion to set a new record. I’m saying the potential for over $59 billion in annual spend is in sight!

So, this is the final NPD wrap up I’ll write in 2021, since December’s release is currently scheduled for January 14th, 2022. I absolutely loved covering them, and I hope you enjoy reading the recaps as well.

There’s a lot ahead at the site before the New Year as my annual Year in Review pieces will go around the last week of December. Hope everyone remains safe and well, Happy Hanukkah, Merry Christmas and a very wonderful December to all.

Thanks for the time and interest!

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Comparisons are year-over-year unless otherwise noted.

Sources: New York Times (Image Credit), The NPD Group.

-Dom

U.S. Games Industry Sales Set October Record as Seven New Titles Enter Top 10 List

It seems October was a scary good month for video game sales in the States.

That’s according to the latest monthly report from industry tracking firm The NPD Group, which released its October 2021 stats for the U.S. games market today.

The data shows it was a record-breaking October for consumer spending, where it approached nearly $4.4 billion in sales or an increase of 16%. All three categories experienced some sort of growth, both during the month and across 2021. Video Game Content and Video Game Hardware rose double-digits in these time frames, while Video Games Accessories saw more modest single-digit gains.

Within the biggest contributor of Content, new releases occupied a staggering seven of the Top 10 spots on the overall software chart. Ubisoft’s open world action shooter Far Cry 6 landed the top rank, just above a surprising runner-up in Warner Bros’ co-op zombie tag-along Back 4 Blood. Nintendo then boasted the opposite of a dreadful start for the latest entry in its classic Metroid franchise, as Metroid Dread set its own super series launch record. And, as it often does, mobile continues a steady pace with October spending again exceeding $2 billion. A feat which mobile has achieved for eight straight months now.

Hardware remains the category with the most growth upside as both Nintendo and Sony showed consistency, even amidst a supply-limited situation impeding them and competitors from making as many consoles as they’d like in ideal conditions.

Nintendo Switch regained the top spot during October, as measured by both units sold and dollar sales. Primarily bolstered by the October 8th launch of its Switch OLED model which contributed over 40% of Switch unit sales for the month. The device family is also the best-selling of 2021 to date when using units as a gauge.

PlayStation 5 is still the year’s best-seller from a dollar standpoint, no doubt influenced by steady demand and a higher asking price. Curious to see if this keeps up through the holidays, given recent reports of Sony potentially reducing production targets given part scarcity in the global supply chain.

Here domestically, October represented a consistent trend lately of spending gains, record output for certain data points, hardware growth trajectory, mobile momentum and successful software starts. Demand was certainly still solid for consoles in particular, leading me to surmise the record October could have been even more stacked if it wasn’t held back.

“Strong hardware, subscription and mobile, this month [was] aided by the flow of new releases,” said NPD Group’s Mat Piscatella on Twitter. “Still don’t know how high the ceiling is for console hardware, [it’s] still (and will be for a long while) in a supply constrained environment.”

There’s a lot to cover, let’s start with the overall figures then move into category results.

United States Games Industry Sales (October 3rd, 2021 – October 30th, 2021):

Consumer spending in the U.S. games market moved up that aforementioned 16% to a best ever October amount of $4.4 billion. This means it’s upwards of $46.67 billion on the year as a whole. That’s 12% higher than the comparable period in 2020.

Seeing both of these totals rise double-digits given the more strict quarantine restrictions last year proves the market’s resiliency, maintaining buyers within ecosystems like mobile and subscriptions like Xbox Game Pass, plus the ongoing popularity of live service games with long tails. Combine that with hardware demand and there’s a recipe for growth even against high comparables.

Content i.e. software, subscription and mobile sales increased 11% in October, settling at $3.76 billion. That’s 86% of total spend for the month. We know that mobile passed $2 billion, comprising at least 46% of this Content category. Monthly mobile revenue growth reached 12%. This makes sense, rising from the single-digit gains around this time last year, because people are spending more time and money on their phones.

On the traditional software side, the big story is new releases. These accounted for four out of the Top 5, seven of the Top 10. Even enough to push mainstays like NBA 2K and Call of Duty down the list further than accustomed.

Leading the pack was Far Cry 6, which is already a part of the 2021 to date best-seller list as well at #8. The title also earned the top spot on PlayStation and Xbox individual charts. I didn’t see much from NPD Group in the way of direct comparison to prior entries. Which doesn’t mean I can’t do just that. Its predecessor Far Cry 5 also led its first month in March 2018. Ubisoft claims this year’s title has 25% more engagement than its predecessor, albeit didn’t share anything on copies or dollar results. For more context, Far Cry 4 debuted all the way down in 6th place back in November 2014.

Back 4 Blood charted at the second spot during October, securing that same rank on both PlayStation and Xbox sales lists. Developed by Turtle Rock Studios featuring veterans of the Left 4 Dead team, the multi-platform title no doubt benefited from a simultaneous launch into Xbox Game Pass. In a trend now seen consistently for years, starting in the subscription service actually compliments sales rather than cannibalizes them. The word-of-mouth effect works especially well for a game like Back 4 Blood focused on the social element of slaying the undead alongside friends.

On to more records. Nintendo’s Metroid Dread speed boosted towards a historic launch, rounding out the Top 3 for October even without its digital portion. It might have been ever better taking downloads into account. Even so, the Switch exclusive set a new series record for launch month dollar sales. Looking at strictly retail, Metroid Dread’s first month earned more than double that of prior best Metroid Prime in 2002. According to an interview with Nintendo of America President Doug Bowser, it sold 854K units in the U.S. alone during October marking the best start of all time for a Metroid release. (I assume his figure includes retail AND digital, whereas NPD ranks do not for Nintendo-published games.)

Moving past Madden NFL 22 at #4 we get to the somewhat shocking entry of Demon Slayer: Kimetsu No Yaiba: The Hinokami Chronicles ranked fifth overall and the same spot on the PlayStation list. The anime arena fighter published by Sega is the latest in certain Japanese titles launching simultaneously in the West, much to its benefit.

Other notable new launches include Marvel’s Guardians of the Galaxy from Square Enix at the seventh spot. Consistent with what I predicted earlier, keep in mind this happened with only a handful of days on record after a late October start. I wouldn’t jump to conclusions yet on calling it disappointing, especially given the Marvel brand backing. Right after this were Nintendo mini-game collection Mario Party Superstars then hockey simulator NHL 22 from Electronic Arts at 8th and 9th, respectively.

Beyond that, the rest were games launched in prior periods. One slight item of note is the second game from Ubisoft released in October Riders Republic was nowhere to be found. Not yet at least.

Up next are the rankings themselves. Then it’s more deets on Hardware and Accessories.

Top-Selling Games of October 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Far Cry 6
  2. Back 4 Blood
  3. Metroid Dread*
  4. Madden NFL 22
  5. Demon Slayer: Kimetsu No Yaiba: The Hinokami Chronicles
  6. FIFA 22
  7. Marvel’s Guardians of the Galaxy
  8. Mario Party Superstars*
  9. NHL 22
  10. NBA 2K22*
  11. Mario Kart 8*
  12. Call of Duty: Black Ops Cold War
  13. Ghost of Tsushima
  14. Super Smash Bros. Ultimate*
  15. Animal Crossing: New Horizons*
  16. Minecraft
  17. Marvel’s Spider-Man: Miles Morales
  18. Diablo II: Resurrected
  19. Mortal Kombat 11
  20. The Legend of Zelda: Breath of the Wild*

Top-Selling Games, 2021 To Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Madden NFL 22
  3. MLB: The Show 21^
  4. Resident Evil Village
  5. Super Mario 3D World + Bowser’s Fury*
  6. Marvel’s Spider-Man Miles Morales
  7. Mario Kart 8*
  8. Far Cry 6
  9. Minecraft
  10. Assassin’s Creed Valhalla

Flip flopping over to the Hardware category, spending totaled $472 million in October. That’s up 82% from $260 million. Expanding to 2021 numbers, Hardware is above $3.88 billion which is 53% more than where it was a year back.

Pretty substantial growth that I’ll call wholly expected, given the lower comparison during a late generation cycle last year as it’s now been 11 months of data for new consoles from Sony and Microsoft.

After PlayStation 5 topped September, Nintendo Switch reemerged as the pack leader during October. Driven by a fancy new OLED iteration, it snatched back the top spot on both unit sales and dollars generated.

Bowser shared how Switch sold 711K consoles in the States overall last month. 314K, or 44%, were Switch OLED model. This figure tells a story on its own. The latest version featuring a more dazzling, larger screen plus other enhancements isn’t just attracting new buyers. It’s enticing existing owners to upgrade or replace. Whether they own the original 2017 model or have a Lite they are passing along to a family member or child, there’s plenty of demand among those that already bought some sort of Switch before. Plenty of potential on the demand curve.

“We see this as a strong start for the Nintendo Switch OLED model and a very strong indicator of the performance we can expect as we go into the holiday season,” said Bowser.

Considering this kick off for the OLED and consistency of sales, Nintendo Switch is currently the top-selling gaming device for 2021 by units sold. I believe it’s held that position all year given its recent track record.

Now, while PlayStation 5 gave up the lead on the monthly chart, Sony’s most recent console still retains the 2021 to date best as measured by dollar sales. Again its revenue potential is bigger than Switch, even with OLED being a slightly higher priced model within its particular family.

You might be wondering if there’s anything on Microsoft’s Xbox performance. Well, unfortunately I didn’t see any within The NPD Group’s reporting. I’ll assume the trend that Xbox is selling out, it’s just not producing as many boxes as its peers. Just wish the report confirmed this narrative.

Within the smallest and usually most uneventful category of Accessories, spending gained 5% in October to $158 million. Marginally above the $151 million last year. Considering the first 10 months of the year as a whole, it’s showing more growth at 9%. That’s upwards of $1.92 billion in sales for this segment.

Microsoft did lead in at least one aspect during October: Its Xbox Elite Series 2 Wireless Controller generated the most sales within Accessories.

Briefly digging into the category, game pads are the top seller for the year so far. Spending on game pads is 7% higher now than it was thru October 2020.

And looking at 2021 so far, PlayStation 5’s DualSense White controller continues as top dog. Because of its pricing and the popularity of its corresponding console, I believe it’s been the broad leader all year.

Hardware supply, hardware supply, hardware supply. And spankin’ new games. These are the highlights of October’s record report, a stellar period for overall spending, Nintendo’s Switch OLED model and standout entries in series like Far Cry and Metroid.

Echoing a hesitant sentiment on the console side, there’s been (unconfirmed) reports in the industry that Sony has slightly lowered its global target for PlayStation 5 production for the year ending in March 2022. Similarly, as I wrote last week, Nintendo formally reduced its worldwide annual Switch shipment guidance from 25.5 million to 24 million.

The word being thrown around is uncertainty, which is the bane of any analyst or predictor’s existence. We just don’t know when chip availability will improve. Still, it’s the pre-holiday rush season including the coveted Black Friday time frame, so expect a lot of competition for that top spot. My personal choice is Nintendo Switch leading November by units, then PlayStation 5 squeezing out a slight victory on dollars.

Bowser mentioned the general environment and Nintendo’s related effort during his interview.

“These challenges have been facing many industries, and they’ve been going on for quite some time,” he said. “But we’re working to meet demand for our holiday products, including Nintendo Switch OLED model. I will say things are constantly changing, but we’ve been working across the supply chain – from production to overseas transport to local distribution channels – to make sure we have a steady flow of hardware and games through the holiday cycle.”

Speaking of a steady flow of games, November will continue the fourth quarter spree of triple-A blockbuster launches in particular. It’s the season of heavy hitters.

Activision Blizzard, whose executives still haven’t fully addressed any clear steps being taken to improve workplace conditions and should be held accountable for their inaction in recent years, published its latest military shooter entry Call of Duty: Vanguard last week. I fully expect it to the November’s biggest seller, and enter the 2021 to date chart near the top.

Then there’s the glorious success story of Forza Horizon 5, which I expect to be in the Top 2 or 3 of the overall chart and easily top the Xbox platform list in November. The open world driving game from Playground Games already surpassed 6 million players according to Xbox’s Aaron Greenberg, overtaking my ambitious initial week estimate of 5 million! Not only is it a first-party Microsoft title going directly into Xbox Game Pass, the early access version attracted at least a million buyers based on in-game statistics. It should be the largest Forza Horizon launch of all time in the U.S.

There’s also the likes of Electronic Arts’ Battlefield 2042 (which I expect to round out the Top 3 on the total charts), Switch exclusive Pokémon Brilliant Diamond & Shining Pearl plus Rockstar Games presenting Grand Theft Auto: The Trilogy – The Definitive Edition. I expect a fun, eventful November especially given how October shaped up!

As usual, check out Mat at NPD Group’s thread for more details and further insights direct from the company itself.

Definitely look forward to digging into it then and chatting here or on social media. Until then, be safe, get those booster shots and thanks everyone for taking the time to hang out.

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Comparisons are year-over-year unless otherwise noted.

Sources: Aaron Greenberg, Bloomberg, GamesRadar (Image Credit), The NPD Group, Ubisoft, The Verge.

-Dom

PlayStation 5 Breaks Nintendo Switch Streak in Record September for U.S. Games Sales

Although it feels like no one can find one these days, PlayStation 5 is most certainly selling. And, like many years past, sports video games are as popular as ever here in America.

That’s according to the latest monthly report from U.S. games industry tracker The NPD Group, which released its September 2021 consumer spending figures earlier today.

Within, the firm revealed last month hit a September best across the entirety of tracked history. Total spending reached nearly $4.4 billion, an increase of 3% and the single best September month on record.

This impressive result was primary driven by continued moment of hardware growth, mobile spending and ongoing subscription sales on services like Xbox Game Pass. These sub-categories were able to balance out declines elsewhere, including within accessories.

Biggest story told by the numbers is within Video Game Hardware: how PlayStation 5 halted a competitor’s historic streak. Sony’s latest generation box was the best-selling console in the U.S. by both dollar sales AND units sold. The latter is the important point. This ends Nintendo Switch’s consecutive streak of leading by unit sales at a whopping 33 months. The last time a console other than Switch was atop the hardware chart by this metric was PlayStation 4’s win back in November 2018!

Which to me is more indicative of supply conditions as Sony continues to output as many PlayStation 5’s as possible. Nintendo has swapped over to its Switch OLED Model production, which launched after this month’s sales report on October 8th. The tricky part going forward is inventories aren’t expected to increase much anytime soon. In recent weeks, semiconductor sector leaders from AMD and Marvell commented that the chip shortage likely won’t ease until back half of 2022 if not later. As a primary component of gaming consoles, this is concerning for those of us that track industry sales.

Back to the report within Video Game Content i.e. the software, mobile and subscription category. While it was flat on the spending side, sports games dominated to take home the top three spots on the overall chart. Entries in Madden NFL, FIFA and NBA 2K scored top marks. This happened alongside record franchise launches for Tales and Life is Strange, all of which contributed to consistent content trends.

Mobile continues to be a major factor of course, contributing over $2 billion in monthly spending yet again. This has happened in eight of the past nine months this year. That’s roughly 45% of overall spending for the entire month of September. Names like Candy Crush Saga and Genshin Impact were among the best performers.

The NPD Group’s Mat Piscatella said the story overall is “unchanged” lately, namely how hardware is performing as well as supply allows it plus mobile and subscriptions are keeping their pace.

Before moving into the actual charts and underlying trends, I want to say I hope everyone is safe and healthy leading into a busy season, namely the colder months here in the Northern hemisphere. Grab a cup of something warm and read on for the hottest details of today’s report.

United States Games Industry Sales (August 29th, 2021 – October 2nd, 2021):

As mentioned before and displayed in the above gallery, it was a record-breaking September for the domestic games industry. Total consumer spend grew 3% to $4.4 billion, the best September month of all time.

This led to the first 9 months of 2021 reaching $42.28 billion, or growth of 12%. Two of the three main meta categories experienced double-digit gains, and the last just a tad below that.

Monthly Content spending was essentially flat in September, stacking up $3.78 billion or around 87% of total spending. Aggregating the year so far, Content is up 10% to $37.11 billion for the first three quarters.

This Content segment result was driven by mobile, hardware and myriad new releases on the software side. Within mobile in particular, average monthly spending in the first 9 months was 28% higher than last year. Genshin Impact in particular celebrated its one year anniversary recently and was the second highest grossing mobile title in September, up a massive 120% compared to August.

There’s a whole lot to cover on the traditional console and PC market side, mainly due to just how many best sellers launched. I’ll try to go rapid fire.

Madden NFL 22 repeats at the top spot on the overall chart, the same as during its release month of August. Electronic Arts’ annual football entry is now the second best-selling game of 2021 to date, up from fourth in August. It was the top earner on PlayStation and Xbox platform lists alike.

Electronic Arts also published the second-ranked game in FIFA 22, which hit that same spot on PlayStation and Xbox ranks. That’s with only 2 days of sales in this period. This was just below last year’s debut when it nabbed the top spot in October 2020 because of more days included and a bigger gap between its release and Madden at the time.

NBA 2K22 was the sports title rounding out the top three. Take-Two Interactive might have jumped even higher with its annual basketball series if the publisher shared digital sales, so this start is that much more notable because it’s retail alone. This was higher than NBA 2K21’s relative start, where it was #5 in September 2020.

Next up was new launch Tales of Arise at #4. It had the single biggest launch month of any game in the Bandai Namco-produced Tales Japanese RPG series, measured by dollar sales. And it’s yet another example of Eastern games gaining in popularity during simultaneous global releases.

Activision Blizzard, a company still under lawsuits for reported workplace toxicity that its executives fostered thus making a difficult time for women and marginalized employees, saw its Diablo II: Resurrected earn the fifth spot last month. Deathloop, the atypical PlayStation 5 exclusive published by Xbox Game Studios post Microsoft’s ZeniMax deal, came in sixth place. I call that successful for a single platform game (for now) just on PlayStation 5, achieving fourth on PlayStation platforms in September behind only the major third-party sports titles. Then Square Enix’s Life is Strange: True Colors sneaked into the Top 10, yet another commercial success that generated record first month dollar sales within its respective franchise.

Further down the list were new releases Sonic Colors: Ultimate at #13 then Nintendo’s WarioWare: Get it Together! at #15. One major observation is there were no Nintendo-published game within the Top 10, the highest ranked was Mario Kart 8 at eleventh. Definitely impacted by Nintendo only reporting physical sales plus the dearth of new multi-platform titles available across competitors.

It’s time for all them rankings.

Top-Selling Games of September 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Madden NFL 2022
  2. FIFA 22
  3. NBA 2K22*
  4. Tales of Arise
  5. Diablo II: Resurrected
  6. Deathloop
  7. Call of Duty: Black Ops Cold War
  8. Ghost of Tsushima
  9. Marvel’s Spider-Man Miles Morales
  10. Life is Strange: True Colors
  11. Mario Kart 8*
  12. Diablo Prime Evil Collection
  13. Sonic Colors: Ultimate
  14. Minecraft
  15. WarioWare: Get it Together!*
  16. Assassin’s Creed Valhalla
  17. Super Smash Bros. Ultimate*
  18. Animal Crossing: New Horizons*
  19. Call of Duty: Modern Warfare
  20. Mortal Kombat 11

Top-Selling Games, 2021 To Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Madden NFL 22
  3. MLB The Show 21^
  4. Resident Evil Village
  5. Super Mario 3D World*
  6. Marvel’s Spider-Man Miles Morales
  7. Mario Kart 8*
  8. Minecraft
  9. Monster Hunter Rise
  10. Assassin’s Creed Valhalla

Diving into Hardware numbers for the month, this segment experienced a 49% increase in consumer spending to $412 million. It’s the most significant growth story across the full report, which makes sense this early in the cycle. And I believe it could be even more if the inventory situation was less constrained, as I’m confident there’s ample demand.

Hardware was also up the same 49% during the first three quarters of the year through September, moving almost $3.41 billion in spend.

And well, it happened again. One of my predictions from last month’s piece was wrong. As I mentioned during the intro, PlayStation 5 topped September by both dollar revenue and monthly unit sales. I previously guessed that Nintendo Switch could outpace competitors until the crucial November and December time frames, when anything can happen. Sony was successfully able to produce enough PlayStation 5 boxes to outpace Nintendo, which had an incredible run over the past almost three years. The best predictors are able to admit when they miss, and it won’t be the last time.

While The NPD Group didn’t formally report second place on the console side, I assume it was Nintendo Switch based on current momentum and consistency of output. There’s also no word on Microsoft’s Xbox performance. I know anecdotally it’s extremely difficult to find Xbox Series X, so those higher priced units are selling. I’m unsure on Xbox Series S because I’ve seen more inventories pop up on online retailers in particular, not going out of stock as quickly as other new consoles. I’d love to see the numbers behind it.

Which leads me to a similar story for dedicated readers and social media friends: Supply, market forces and shortages! Until there’s more, it just depends on which manufacturer has more in the market. September was Sony’s time to shine. Let’s see where it goes in the coveted fourth quarter.

Final category to cover is Video Game Accessories, really the only blemish on an otherwise solid report. Spending here declined 12% last month to $171 million. It was $193 million back in September 2020.

Accessories is still growing over the first nine months of 2021, reaching $1.76 billion over that time which is 9% higher than the same period in 2020. Its pace is still positive, even if slowing.

Microsoft again boasted the top accessory with its Xbox Elite Series 2 controller generating the highest dollar sales. Sony’s PlayStation 5 Wireless Controller white iteration maintained its position as the year’s best seller so far.

Not much else to say for this segment other than it’s relatively quiet right now. Upside is there are gains for the year in total.

When taking September’s U.S. games industry report from The NPD Group as a whole, there’s a lot of bright spots within both content and hardware results. PlayStation 5 pushes through the chip shortage to steal Nintendo’s spotlight, even if I believe that will be temporary.

Not only do I expect Nintendo Switch to regain its leading hardware position during October on units, I believe it can win on dollar sales too due to the higher-priced OLED offering.

We’re currently in the midst a busy season of releases, especially for AAA sports franchises, and I expect those to continue on the charts for foreseeable future. FIFA 22 will now have a full month of sales then Madden and NBA 2K will continue momentum during their respective league seasons.

In terms of other recent or upcoming titles, Ubisoft will have a favorable month as Far Cry 6 will chart well then Riders Republic is a wildcard. Nintendo publishes two games in Metroid Dread and Mario Party Superstars. I firmly believe the former will undoubtedly set a series launch record. Just unsure where it will rank within the broader market against multi-platforms, I’d say Top 6 or 7 is realistic.

Back 4 Blood is a question mark. I expect Xbox Game Pass, pent up demand for a Left 4 Dead-like and word-of-mouth can drive a solid start for the title published by Warner Bros Games. Electronic Arts had NHL 2022 launch a few days ago, a sports title more niche than its counterparts. Guardians of the Galaxy from Square Enix will be a curious debut in late October, where I expect brand recognition alone to can land a Top 7 rank even with three days on market.

All in all, it’s a fun time to be following the industry and checking which records will be made or broken each time.

Thanks all for reading. I should have at least an article or two between now and October’s report. Earnings season is starting up after all, so stay tuned for my world famous calendar! I hope you and yours are doing well until next time around.

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Comparisons are year-over-year unless otherwise noted.

Sources: CNBC, Electronic Arts, Microsoft, The NPD Group, Sony.

-Dom

Madden & Mobile Score Big in Record August Report for U.S. Games Industry Sales

Yes, it’s football season again in America which means autumn is on the way. And a new Madden NFL game is atop the charts.

The world is returning to its natural order.

Jokes aside, I first want to say I hope everyone is well in this challenging portion of the pandemic. Which is still going on, despite what some might have you believe. I wish you and your families all the best during this still difficult time. Hang in there.

Hopefully for a quick distraction, industry tracking firm NPD Group reported its monthly U.S. games spending report for August 2021. It’s a huge one. As in almost $4.4 billion in spending, which marks an August record for overall sales across the industry’s history.

Within the Video Game Content category, which saw monthly sales growth of 5%, the aforementioned Madden NFL 2022 led the total software chart. This is a feat the Electronic Arts-published franchise has accomplished now for a staggering 22 straight years during its launch month! The last time a Madden NFL title wasn’t the best-seller in its first month was August 1999 when wrestling game WWF Attitude outpaced the start of Madden NFL 2000. Granted, this was a time when the latter of which had a limited amount of days during that measured period.

Mobile continues its climb notably as more people open up their commutes and traveling, accounting for over $2 billion or roughly 45% of the domestic spending total. Led by Candy Crush Saga, Garena Free Fire and Roblox among others, this segment is a driving force behind the record August performance.

Swapping to the console side, Nintendo Switch, Sony’s PlayStation 5 and even Xbox Series X|S continue solid trends leading Video Game Hardware category spending to a 45% increase and an August dollar total that hadn’t been reached since 2008. Nintendo Switch was the best-selling in August by unit sales, thus retaining its spot as the top-seller for 2021 so far. This unit sales lead is the 33rd consecutive month for the hybrid console, which I expect to continue thru next month and beyond with the launch of its new OLED model.

PlayStation 5’s first year momentum marches on despite widespread supply shortages. It was August’s highest-selling platform by dollar sales, a metric by which it also leads for the year to date.

The literally massive PlayStation 5 has been on sale for 10 months now. During that time, it’s the fastest-selling PlayStation brand platform in tracked history. As I noted last month in July, NPD Group reported it was the fastest-selling hardware ever thru nine months at the time. Now that its comparison has reached the Nintendo Switch’s holiday season, the PlayStation 5 no longer holds the top spot. Still an impressive run given constraints on the inventory side. It could even return to being the quickest seller, depending where production goes.

Now that I’ve hit the highlights, it’s time to move into the full August figures.

United States Games Industry Sales (August 1st, 2021 – August 28th, 2021):

As detailed in the above gallery, overall consumer spending rose 7% to $4.37 billion during August 2021. Spurred mainly by Madden, mobile, subscriptions plus both older and newer hardware growth despite semi-conductor concerns, this is an August month record across NPD Group’s tracking history. Full-on proof the games industry keeps on moving as the most popular entertainment vertical.

Expanding to annual figures, total consumer spend on gaming year-to-date hit nearly $38 billion. This is 13% higher than the first eight months of 2020. All of the three major categories saw double-digit growth during this time, showcasing the stickiness of demand, general fan retention and even audience expansion.

Video Game Content i.e. everything from software, mobile and related sales made up the bulk of these monthly totals, reaching $3.88 billion in August. Or around 89% of overall spend. Which is 5% better than the same time last year. Underlying this is the sixth month in a row where mobile alone generated $2 billion, something that only happened three times all of last year.

As NPD Group reports have shown recently, the strength of 2021 to date sales continues with Content alone moving up 11% to $33.33 billion in aggregate during this time-frame.

Digging into individual title performance during August, I mentioned before how Madden NFL 2022 led the chart during its first month on sale and maintained an historic streak going back more than two decades. As a result of.. kicking off this initial performance, the game is immediately the fourth best-selling title of 2021 so far.

Football wasn’t the only big story of the software list. Open world samurai slasher Ghost of Tsushima, which came out on PlayStation 4 back in July 2020, saw a resurgence in August due to the start of its Director’s Cut version including an upgrade path to PlayStation 5 alongside a new expansion. Sony’s PlayStation exclusive was ranked 110th in July. Talk about making moves!

Rounding out the Top 3 was, of course, Call of Duty: Black Ops Cold War as it entered its latest Season 5 of ongoing content. The military shooter is published by Activision Blizzard, a company that’s still under a lawsuit due to reported workplace toxicity and a culture of abuse towards women and marginalized people. I’m behind the employees fighting back against executives.

Right after this was the 4th best-selling title of the month in turn-based strategy game Humankind. Published by Sega and made by Amplitude Studios, it was the top-selling PC game during August. It’s already 5th on the 2021 to date chart for PC as a platform. An exceptional start, especially for a game without a console release just yet. (I guess it did launch on Google Stadia.. hah.)

Otherwise, the top monthly rankings were about as expected. Business as usual for a couple Nintendo games among the ten best-sellers: the ever-present Mario Kart 8 then The Legend of Zelda: Skyward Sword HD moving to 7th from its top spot in July. The publisher has a number more in the Top 20, as always.

Minecraft in there like usual. Assassin’s Creed Valhalla did show a nice move back into the Top 10 from #20 in July, likely due to ongoing support via Ubisoft’s downloadable content. In terms of new releases, No More Heroes 3 from Grasshopper Manufacture started at #42. Tough to contend in August as a Switch exclusive and with only a few days in the tracking period.

Below are the software ranks across all measured platforms for August plus year-to-date.

Top-Selling Games of August 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Madden NFL 2022
  2. Ghost of Tsushima
  3. Call of Duty: Black Ops Cold War
  4. Humankind
  5. Marvel’s Spider-Man: Miles Morales
  6. Mario Kart 8*
  7. The Legend of Zelda: Skyward Sword HD*
  8. Minecraft
  9. Assassin’s Creed Valhalla
  10. MLB The Show 21^
  11. Super Smash Bros. Ultimate*
  12. Call of Duty: Modern Warfare 2019
  13. Ratchet & Clank: Rift Apart
  14. Animal Crossing: New Horizons*
  15. Pokémon Sword & Shield*
  16. Mortal Kombat 11
  17. Super Mario 3D World + Bowser’s Fury*
  18. The Legend of Zelda: Breath of the Wild*
  19. Mario: Golf: Super Rush*
  20. Super Mario Party*

Top-Selling Games, 2021 To Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. MLB The Show 21^
  3. Resident Evil: Village
  4. Madden NFL 22
  5. Super Mario 3D World + Bowser’s Fury*
  6. Marvel’s Spider-Man: Miles Morales
  7. Mario Kart 8*
  8. Monster Hunter Rise
  9. Minecraft
  10. Assassin’s Creed: Valhalla

Video Game Hardware remained the biggest monthly grower shared by NPD Group, jumping 45% to $329 million in total spend last month. This is the single best August result for the category since $395 million back in August 2008.

“Were enough units available to actually satiate consumer demand this year, I have little doubt this record would have been absolutely smashed,” said NPD Group’s Mat Piscatella after sharing the report.

And I concur. We’ll never know the ceiling for hardware sales during these recent months with a dire chip situation for everything from automobiles to consumer tech to appliances and beyond. The unfortunate part is how this is expected to continue in the near-term, so this category’s true potential during this latest generation of platforms won’t be revealed until years to come.

Within these constraints, I mentioned before how Nintendo Switch retained the top spot in August and 2021 by unit sales thus increasing its incredible streak of monthly wins. Since November 2018! This begs the question of how long can it go? Based on a potential pricing move for the base model and demand from enthusiasts for Nintendo Switch OLED, launching worldwide October 8th, my guess is unit sales thru the holiday season will be led by Nintendo’s hybrid console.

Dollar sales leader for both August and year-to-date PlayStation 5 is faring well, even if no longer the fastest-selling platform in history. Both Game Boy Advance and Nintendo Switch are now ahead of PlayStation 5 during each platform’s respective first 10 months on market. Within Sony’s storied gaming history, it’s still top dog. Between that and leading recent months by revenue, partially bolstered by a higher price point than Switch, the PlayStation brand is as ubiquitous as ever.

Similar to recent months, there wasn’t much in the way of details on Microsoft’s Xbox platform sales. NPD Group did reiterate how Microsoft is selling-thru to buyers as many Xbox Series X|S boxes as it can produce in the States. It’s just seemingly not as many as its competitors. I’m curious about these production dynamics, in particular the gap between platform performance. I didn’t see a comparison or any granularity past these general comments.

We’ll have to live for now knowing that all three major manufacturers are performing consistently in the domestic market, just a matter of how well!

Last category on the docket before closing up shop is Video Game Accessories. It’s the only one of the three that didn’t experience growth during August, coming in exactly flat at $164 million in contribution.

This was Microsoft’s category to shine last month. The team’s Xbox Elite Series 2 Wireless Controller achieved best-selling status out of all accessories, implying that even though many people can’t buy consoles, the high-end game pad is attractive. Mainly because of its compatibility with various generations and devices, including Bluetooth capability for use with cloud gaming.

When looking at the year as a whole, the result for Accessories stays much more positive. Its annual figure to date is up 12% compared to last year, reaching nearly $1.59 billion. Sony’s PlayStation 5 DualSense Controller white variant kept its position as the year’s highest-selling accessory. No doubt mapping in parallel to its underlying console trajectory, as folks opt to purchase additional game pads for co-op or multiplayer use.

Another month in the books. While it wasn’t the most eventful, there’s still plenty of news, indicators and trends to follow.

Yet another record for overall spending, this time an August month, and hardware growth leading to the best category result in 13 years. A set of impressive streaks for Nintendo and Electronic Arts, while Sony’s latest platform trajectory remaining the best it’s ever been.

Companies selling out of console stock, trying desperately to make enough to keep up with intense demand. Big movers and shakers on the software side, plus mobile’s steady presence for content spending alongside subscription services increasing in popularity.

Top-end game pads propping up an accessories segment that often moves as hardware does early in a cycle.

September marks the last month of the third quarter already! It’s a busy one, even in a year with noticeably less output at the triple-A level. Perennial seller NBA 2K from Take-Two Interactive has a new annual entry. Nintendo’s silly party game WarioWare: Get It Together is out. Then there’s Deathloop, the unusual Xbox Game Studios title exclusive to PlayStation 5 that I predict will outperform. Life is Strange: True Colors, Lost Judgment, Diablo II: Resurrected and I imagine a surprise or two will be featured in stories upcoming.

Not to mention the biggest topic in hardware next month as Switch’s OLED model hit shelves. How will it fare given the environment, and will PlayStation 5 keep pace? Can Microsoft boost Xbox output to compete in the rankings?

We’ll know more then. Thanks everyone for stopping by this month and hope to see you again soon!

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Comparisons are year-over-year unless otherwise noted.

Sources: Electronic Arts, Neil Gardose (Photo Credit), The NPD Group, Sensor Tower.

-Dom

Hardware & Zelda Propel U.S. Games Industry Spending to Record High July

The domestic games industry is rolling with the excessive wave of warm weather hitting the States lately in that it’s heating up during these Summer months, as consumer spending in July 2021 reaching a record high for any July in history.

Industry tracking firm The NPD Group shared its latest U.S. monthly sales report this morning. In which, all signs point to continued momentum especially within hardware, even considering tight supply conditions limiting inventories in the market for next generation consoles from Sony and Microsoft. This and content spending increases notably for mobile, subscriptions and post-launch are likely bolstered by returning mandates hitting the country as variants of coronavirus spread.

Despite what a bad opinion piece from a major media outlet that I won’t link here might say, people are most certainly still enjoying games. And buying new devices on which to play them, for longer than ever.

Overall consumer spending across Content, Hardware and Accessories totaled nearly $4.6 billion in July. That’s a solid increase of 10% since this same time last year and a record amount for a July month across tracked history, dethroning last year’s $4.2 billion.

In terms of dollar sales, Content continues as the largest contributor though it was the only category of the three not to experience double-digit growth. Hardware gains proved resilient, nearly doubling year-on-year spend driven by another unit sales lead for Nintendo and PlayStation 5 continuing its historically quick start. Accessories wouldn’t be left out of the party as it actually set a July sales record of its own, influenced by a new product offering from Nintendo.

Software charts boasted two new games in the Top 3, both from storied franchises created by Japanese publishers Nintendo and Capcom. Activision Blizzard’s Call of Duty franchise had another month where two of its games ended up in the general Top 10. The real story there is how the American publisher should be called out for reports of its toxic workplace every time its games are mentioned now.

It’s time for the numbers behind an exceptional July for broad U.S. games industry spending.

United States Games Industry Sales (July 4th, 2021 – July 31st, 2021):

As I mentioned above, it was a record July month for overall monthly domestic spending on games at $4.6 billion. When expanding to 2021 as a whole, total video game sales rose 14% to $33.5 billion across the first seven months. Gaming is still the preeminent entertainment experience, especially as platform holders delve more into the subscription side appealing to folks with both traditional and on-the-go devices.

Within the largest sub-category of Content i.e. software etc, it was mobile, subscription and post-launch spending boosting sales during July to just under $4.1 billion. That’s a moderate 6% increase. Year-to-date Content currently totals $29.4 billion, moving up 12%.

The Switch Effect remains in full effect here on the overall monthly software chart. Nintendo’s hybrid platform claimed four of the Top 6 spots as console or outright exclusives, three of which are published by Nintendo and don’t even count the digital portion of their sales!

The Legend of Zelda: Skyward Sword HD took home top honors in July. I didn’t see much in the way of context here within the report, and I’d love to know how this remaster compares to the original game launching on Wii back in November 2011. All I can say is the first game debuted at #9, so I assume there’s a sizeable difference here. Will update if I hear anything.

Next at #2 is chart mainstay Call of Duty: Black Ops Cold War from Activision Blizzard, the American publisher that’s under a lawsuit because it reportedly doesn’t treat its employees well at all and fosters a “frat boy” workplace culture. The game’s latest season launched today, and I give props to every single employee working hard to keep up with its ongoing content roadmap amidst this difficult environment. Worth noting that 2019’s Call of Duty: Modern Warfare is back in the Top 10 this past month, at the ninth spot.

Capcom’s Monster Hunter Stories 2: Wings of Ruin landed third on the total rankings. The Switch title that’s also available on PC already generated triple the *lifetime* sales of the original Monster Hunter Stories 2017 release on Nintendo 3DS. Wow. NPD Group Analyst Mat Piscatella called this biggest surprise of the month, and can’t argue there. Monster Hunter as a whole gained a more global appeal since Monster Hunter: World in 2018, seemingly now to the point where even console exclusive spin-offs are gaining heavy traction.

Moving down the list, I have to point out Mario Kart 8 and MLB The Show 21. First off, who keeps buying Mario Kart? Well it’s probably anyone purchasing a Switch, right. Which is plenty of people right now. I’ve pushed back my expectations for a Mario Kart 9 every time I see it achieve a Top 5 month or reach a new milestone on global sales, which are now at over 37 million units.

Then there’s MLB The Show 21 at #7 in July, allowing it to set a new year-to-date sales record within the franchise. Not only that: Lifetime dollar sales of the game have already beat out last year’s entry to become the best ever for any MLB The Show game, a series which dates back to 2006. This is only its fourth month on sale! The multi-platform move and Xbox Game Pass decision by Major League Baseball made this game a mega hit.

The last of the new releases within the Top 20 was Neo: The World Ends With You debuting at #16. Launch month dollar sales of the Square Enix-published release started at more than double that of The World Ends With You for Nintendo DS in July 2007.

Finally, Capcom also launched The Great Ace Attorney Chronicles in July, a compilation of adventure games within the Ace Attorney series which started at the 22nd spot on the total chart.

Here’s a full look at two of the main software lists, first for the month then the year as a whole as of July.

Top-Selling Games of July 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. The Legend of Zelda: Skyward Sword HD*
  2. Call of Duty: Black Ops Cold War
  3. Monster Hunter Stories 2: Wings of Ruin
  4. Mario Kart 8*
  5. Minecraft
  6. Mario Golf: Super Rush*
  7. MLB The Show 21^
  8. Marvel’s Spider-Man: Miles Morales
  9. Call of Duty: Modern Warfare 2019
  10. Super Smash Bros. Ultimate*
  11. Ratchet & Clank: Rift Apart
  12. Animal Crossing: New Horizons*
  13. Tony Hawk’s Pro Skater 1+2
  14. Super Mario 3D World + Bowser’s Fury*
  15. Mortal Kombat 11
  16. Neo: The World Ends With You
  17. The Legend of Zelda: Breath of the Wild*
  18. Pokémon Sword & Shield*
  19. Resident Evil: Village
  20. Assassin’s Creed: Valhalla

Top-Selling Games, 2021 To Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. MLB The Show 21^
  3. Resident Evil: Village
  4. Super Mario 3D World + Bowser’s Fury*
  5. Marvel’s Spider-Man: Miles Morales
  6. Monster Hunter: Rise
  7. Mario Kart 8*
  8. Minecraft
  9. Assassin’s Creed: Valhalla
  10. Animal Crossing: New Horizons*

Now, talk about explosive growth.

Hardware experienced the biggest increase of the three segments during July 2021 as sales nearly doubled year-on-year to $323 million. Up 98%, to be exact. It’s the best individual July month since upwards of $447 million back in 2008. Sounds like all three major competitors in Nintendo Switch, PlayStation 5 and Xbox Series X|S experienced increases naturally, just depends on how many boxes they can ship honestly.

Switch maintained its staggering streak of now 32 consecutive months atop the console ranks in July as measured by units sold. It’s also the year’s top-seller, by both units and dollars. Those new software title launches plus evergreens like the aforementioned Mario Kart continue to attract, and I’m very curious to see demand impact for the OLED model that hits market in October.

However, PlayStation 5 led console spending by dollar sales in July implying a higher average selling price and consistent retail demand for its supply-constrained platform. Sony’s latest generation box is still the fastest-selling home console as measured by dollar sales during its first 9 months on market. For now. It’s worth noting that next month will be the 10th for PlayStation 5, which corresponds to Switch’s first December. Even with demand as strong as it is, I don’t know if Sony can keep this streak alive given this timing and external sources limiting output.

On the Xbox side, the report didn’t shed too much light. Piscatella noted that Xbox console sales are “significantly higher” than one year back, albeit that was very late in the Xbox One life cycle.

For 2021 in aggregate, spending on Hardware jumped 50% to $2.7 billion. That’s again the best growth in the tracked sub-categories of Content, Hardware and Accessories. As we’ve seen all year, Nintendo’s Switch console is 2021’s best-selling so far. This time measured by both units and dollars. While not a shocking result, it’s certainly noteworthy for a platform starting off its fourth year on sale versus others in their early stages.

It’s time to accessorize, as July 2021 proved to be a historic month for Accessories as well.

Not to be outdone by its counterparts, spending on Accessories just set a new July record. Last year, July 2020 dollar spend was around $170 million. This year, July sales reached its brand new all-time high of $189 million.

And yes, there’s a theme. The Legend of Zelda: Skyward Sword HD Edition Joy Con debuted as the month’s top-selling accessory, no surprise really. So Nintendo’s latest launch in the Zelda franchise, even as a remaster, was responsible for the month’s best-selling game plus top accessory.

The white version of PlayStation 5’s DualSense Wireless Controller still holds the crown for now as 2021’s best-seller, driving category spending over the year so far to $1.4 billion. That’s 13% higher than the same period in 2020, almost mirroring Content spending growth.

Viewing July’s trend-lines in terms of growth within domestic games spending shows that ever since declines in the months prior to April 2021, monthly spending is now back on the rise. A July record nearly solidifies it. Spending across the industry right now reveals a blend of new audience members plus ongoing spending from casual and core players.

New software releases are helping of course, as is supply for new generation platforms. There’s consistency in both mobile and ongoing spending on the content side, and companies are selling-thru to consumers as many pieces of hardware that suppliers can push out.

It’s also the accretive nature of those people trying gaming for the first time or returning that’s defining this time over a year into the pandemic. Combined with an enthusiast audience still gobbling up Nintendo games plus pumping demand for PlayStation and Xbox, I’m not surprised by ongoing growth.

August marks what I like to consider the first major commercial push of the back half, marked by the launch of perennial seller Madden NFL from Electronic Arts. This year’s Madden NFL 2022 football franchise release kicks off on August 20th. Fully expect it to be the best-seller. August also has a couple notable updates to existing titles in Marvel’s Avengers: War for Wakanda expansion on August 17th plus August 20th’s Ghost of Tsushima Directors Cut. Even with Nintendo bereft of a major first party title and chip shortages ongoing, I’m leaning bullish on the month.

Thanks for reading, be safe and see you next time!

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Comparisons are year-over-year unless otherwise noted.

Sources: Alvaro Reyes (Photo Credit), Bloomberg, The NPD Group, Reuters (Photo Credit).

-Dom

Xbox & Ratchet & Clank Set Records in June 2021 U.S. Games Industry Sales Report

I know it feels like 2020 never ended. Yet somehow, the front half of 2021 is now in the books. It was another challenging one for a variety of reasons, yet one of the bright spots continues to be video game sales which I hope has provided some much-needed joy and respite for everyone.

And with that, we have.. numbers, of course!

Recently, industry tracking firm The NPD Group dropped both a monthly and second quarter 2021 report on the domestic games market. With it, sharing some notable records in the process and showing how spending on all categories this year is trending upwards.

In terms of growth, overall monthly consumer spending on games in the U.S. rose a steady 5% against a high comparable last year, set in the middle of stricter quarantine guidelines. Led by a Hardware category that more than doubled its level this same time in 2020. Within that, Microsoft’s Xbox Series X|S topped dollar sales. Even setting a new June record within the Xbox platform’s 20-year history. Separately, Nintendo Switch maintains a staggering streak when it comes to leading on unit sales, which it did again in June, as it has every month for 31 consecutive months! Both of these impressive feats occurred amidst a global chip shortage, signaling a boost in otherwise limited stock lately.

Content i.e. software, subscriptions and add-on sales moved up slightly, propped by usual suspects like Call of Duty and MLB The Show plus three new releases in the Top 5 on the general chart: Sony’s Ratchet & Clank: Rift Apart, Nintendo’s Mario Golf: Super Rush and Scarlet Nexus from Bandai Namco. Accessories was the only segment showing a decline in June 2021, though only 1% as PlayStation’s DualSense continues its consistency there.

Expanding to second quarter, total spend inched up 2% compared to the same three month period last year. However for the full first half of 2021, total sales climbed a solid 15% as all categories exhibited double-digit bumps. Spending on games isn’t slowing down compared to the height of the pandemic, proving new audience members are sticking around and core players are keeping up the hobby.

It’s time to delve deeper into each segment individually, including a close look at the software charts for both June and 2021 to date!

United States Games Industry Sales (May 30th, 2021 – July 3rd, 2021):

During June 2021, overall consumer spending in the domestic games market reached $4.93 billion, rising 5% compared to the same time last year. That’s now two consecutive months of year-on-year growth after a dip back in April.

While Content remained the leading segment by spending, it was Hardware making the biggest splash as production slowly yet surely ramps up. The last category of Accessories dipped slightly in June, cooling off a bit in the hot summer months domestically.

“Hardware was the obvious big story of June,” said The NPD Group’s Mat Piscatella. “Xbox Series was the star of the month, but all major platforms showed double or triple digit dollar sales growth vs year ago. Demand is nowhere near satiated, supply is still a massive challenge.”

Across the second quarter between April to June, total spend in the U.S. hit $14 billion. That’s up 2% since the same time in 2020. The NPD Group reported Q2 growth across a variety of sub-groups: personal computer (PC), cloud, non-console virtual reality, mobile, subscriptions plus, of course, gaming consoles.

“Consumer spending has not only maintained the elevated levels reached a year ago, but exceeded them in key areas such as hardware, mobile and subscription spending,” said Piscatella in the Q2 report at the firm’s website.

This trend is illustrated even more when looking at the entire first half of 2021. The total for consumer spend jumped 15% to $28.94 billion during the six month span ending June, driven by console growth in particular. Demand for new consoles still outstripped inventories, though manufacturers proved resilient with production even as it’s difficult to source certain parts in the supply chain.

When focusing on Content alone, sales in June reached $4.32 billion. Up a modest 1% year-on-year. Looking at second quarter, this major category saw $12.6 billion in sales, growing 2%. Notably driven by subscription spend, showing double-digit growth in Q2 (although the firm wasn’t specific in that figure). Across the time frame from January to June, Content bumped upwards of $25.36 billion, 13% higher than first half of 2020.

New releases wrote the narrative here for June. Sony published Ratchet & Clank: Rift Apart, the month’s top-selling software title. The latest mainline Ratchet & Clank action-adventure platformer achieved the best dollar sales ever in franchise history, a staple within the broad portfolio of developer Insomniac Games. The prior record holder for the series was April 2016’s Ratchet & Clank, a counterpart to a movie launched that same month.

Right behind chart mainstay Call of Duty: Black Ops Cold War, which ranked #2, was Nintendo’s latest sports offering in Mario Golf: Super Rush. Within the States, this title set a new Mario Golf record for first month dollar spend, outpacing that of GameCube’s Mario Golf: Toadstool Tour way back in 2003. Nintendo hasn’t yet shared global unit shipments for its latest Switch exclusive sports game, though I expect a similarly solid start when it does on August 5th.

June’s biggest surprise to me was Scarlet Nexus fighting to the five spot on the combined platform chart. An action Japanese Role-Playing Game (JRPG) from Bandai Namco is the latest in splendid starts for Japanese titles expanding overseas during simultaneous global launches, echoing examples like Square Enix’s NieR: Replicant at #5 in April 2021, Capcom’s Monster Hunter Rise in the second spot during March 2021 plus Dragon Ball Z: Kakarot also from Bandai Namco, the best-selling title in January 2020.

Through the first half of 2021, chart composition is familiar. Call of Duty: Black Ops Cold War was the best-seller with Resident Evil: Village and MLB The Show 21 right behind it at #2 and #3, respectively. One notable position is the 9th-ranked Outriders from Square Enix, a quietly consistent seller during the first half even if it lost some ground compared to May.

It’s time for the lists themselves, both monthly and first six months of the year.

Top-Selling Games of June 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Ratchet & Clank: Rift Apart
  2. Call of Duty: Black Ops Cold War
  3. Mario Golf: Super Rush*
  4. MLB The Show 21^
  5. Scarlet Nexus
  6. Resident Evil: Village
  7. Mario Kart 8*
  8. Minecraft
  9. Marvel’s Spider-Man Miles Morales
  10. Mortal Kombat 11
  11. Animal Crossing: New Horizons*
  12. Call of Duty: Modern Warfare 2019
  13. Super Smash Bros. Ultimate*
  14. Assassin’s Creed Valhalla
  15. Super Mario 3D World + Bowser’s Fury*
  16. Mass Effect: Legendary Edition
  17. Tony Hawk’s Pro Skater 1+2
  18. The Legend of Zelda: Breath of the Wild*
  19. Pokémon Sword & Shield*
  20. Sea of Thieves

Top-Selling Games, 1st Half 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Resident Evil: Village
  3. MLB The Show 21^
  4. Super Mario 3D World + Bowser’s Fury*
  5. Marvel’s Spider-Man: Miles Morales
  6. Monster Hunter Rise
  7. Mario Kart 8*
  8. Assassin’s Creed Valhalla
  9. Outriders
  10. Minecraft

Moving onto gaming consoles during June 2021, the Hardware category saw gains across all three major platforms in PlayStation, Xbox and Nintendo, driving exceptional growth of 112% to $401 million. That’s the top June sales amount for Hardware since June 2009’s $617 million.

I mentioned before the great, record-breaking month for Xbox where Series X|S led by dollar sales. That’s the first time since its launch in November 2020. It recorded the best June month ever for an Xbox platform, beating out June 2011. No doubt driven by new content for console exclusive Sea of Thieves, continued pace from MLB The Show 21 plus the allure of Xbox Game Pass as the best value proposition in games.

Microsoft wasn’t the only manufacturer with an exciting month. Nintendo Switch led by unit sales in June 2021, as it has every month for years now during its wild run of success. PlayStation 5 continues its extremely quick start. Sony’s new generation (big ol’) box is still the fastest-selling home platform in tracked history, as measured by unit sales during the first 8 months on market. Note this statistic excludes handhelds, since Game Boy Advance is still the fastest-seller overall.

Stretching the time frame to second quarter, console spending moved up 12%. Then between January and June, this Hardware category earned $2.35 billion. That’s a fantastic 45% increase, even if compared to a time that was later in the console cycle last year.

It’s worth repeating that numbers during the early portion of a new platform generation are driven by supply rather than demand, more now than ever given the inventory environment. Essentially, Xbox produced enough Xbox Series X|S units to lead by dollar sales during June. Demand is for all platforms is stellar, even Nintendo Switch four years after its debut. This contrasts a chip shortage expected to block higher production output for a year or two, at least.

The only mildly disappointing category during both June and second quarter was Accessories, unable to keep pace with its counterparts. Understandable given the strength of spending this time last year. Although it did exhibit growth when looking at the aggregate during the first half of 2021, an encouraging sign.

Monthly spending on this category comprised of game pads, headsets etc declined 1% to $207 million in June and was 12% lower than last year when looking at the second quarter. Still, it saw 14% growth during the first six months of 2021, rising to $1.23 billion.

Sony is the consistent leader here. The PlayStation 5’s DualSense Controller Midnight Black edition topped this accessory group during June. Out of the four best sellers last month, three of those were DualSense game pads. Similarly, DualSense’s base White variant led the segment for the year so far.

It appears additional spending on these pieces of ancillary hardware is slowing in the early summer months, so will see where it goes leading into the back half.

The domestic games market saw many bright spots during June, especially for platform holders. Each of them had bragging rights in their own way, and all of them are doing well despite production challenges.

Individual software titles, subscriptions and mobile are keeping up consistency in spending, proving how the industry was not just able to grow its audience during the last year or so, but keep it around to maintain commercial momentum and interest in the medium.

Which makes sense to those tracking closely. Gaming is somehow both the most massive entertainment segment in the world and the quietest, a trend that last week’s reporting clearly shows especially when considering double-digit gains across each category since the year’s start.

I hope everyone stays well until next month when July marks the start of 2021’s second half, always an exciting time for those of us that love to follow. Feel free to drop a comment here or on social media. Be safe and thanks for reading!

*Digital Sales Not Included, ^Xbox Digital Sales Not Included

Sources: Billy Freeman (Photo Credit), The NPD Group, PlayStation Press Center.

-Dom

Resident Evil Feasts During Upbeat May U.S. Games Industry Sales Report

It’s the middle of E3, gamers have finally seen more from Elden Ring, yet nothing can stop this sales train!

The NPD Group returned today with its monthly sales report for the U.S., this time for May 2021. It’s clear the industry is continuing to build momentum, considering spending is up slightly compared to this time last year when everyone was a couple months into stay-at-home restrictions. This movement is mostly due to upticks in the content category with the performance of new releases and attraction of ongoing titles.

Capcom’s Resident Evil franchise and a collection of Mass Effect titles from Electronic Arts headlined the Content segment, while the non-stop Nintendo Switch maintained a momentous streak on the Hardware side. Both of these categories saw single-digit consumer spending growth. Accessories was the only one of the three that saw declines year-on-year, though less than double-digits as new hardware supply is impacting consumer behavior for supplementary spending.

Still, year-to-date growth is nearly 20% for the domestic industry at large to upwards of $24 billion as of May. Each category is up 15% or more for 2021 to date right now, a great number during a lighter than usual release calendar with the impact of COVID-19 still being felt on publisher timelines.

“Tremendous demand for new hardware, supply will dictate performance.” said The NPD Group’s Mat Piscatella as a part of the report online. “Subscription spending is hot, no evidence of cannibalization yet. Confidence growing in market ability to [compare] to 2020.”

Speaking of those latest consoles, PlayStation 5 is officially no longer the fastest-selling ever in the United States in this its seventh month on market. It had a good run, but right now it’s feeling that inventory limit and semi-conductor shortage. A situation that might not drastically improve until 2022.

See more about that and many other details in the sections below, as I dig right into the numbers.

United States Games Industry Sales (May 2nd, 2021 – May 29th, 2021):

In total, spending across the U.S. games industry hit $4.5 billion in May 2021 which is a modest increase of 3% since last year. Which is quite good news, considering the April decline plus how last May proved to put up a sizeable fight with its own quality performance.

As I alluded to up top, 2021 to date spending rose 17% to more than $24 billion as of last month. Contributing to this growth is the combination of ongoing content and subscription strength, two new releases at the top of the software chart plus Nintendo Switch continuing as the hottest console out.

The largest segment of Content (software, add-ons etc), achieved $4.07 billion in spending during May, which is 91% of the full month’s total. This number is up 5% versus the same month in 2020, when it was $3.96 billion. For the first five months of the year, Content boosted 15% to just over $21 billion, again the largest contributor by a wide margin.

Partially pumping up this growth is the top-selling game on the software rankings, Resident Evil Village. The latest in Capcom’s long-running survival horror franchise achieved the best launch month for any game of the year. It’s immediately the second best-selling title of 2021 behind only Call of Duty: Black Ops Cold War. This means it’s the best single month launch for any new game this year.

Resident Evil Village topped PlayStation, Xbox and Steam individual charts here in the States during May. We also know that it’s doing well globally, considering Capcom shared that the title hit 3 million units shipped + downloaded within days of launch then tacked on another million within its first three weeks, for a total of 4 million copies to date.

Second place on the aggregate software chart went to Mass Effect: Legendary Edition. Developed by BioWare under the publishing of Electronic Arts, this compilation of the first three games in the beloved space opera role-playing series reached #3 on PlayStation platforms and the second spot on Xbox.

Compare this to prior titles, as 2017’s critically-panned Mass Effect Andromeda hit third on the total chart while the divisive Mass Effect 3 led its launch month in March 2012. (One thing to note is that back then, ranks were based on unit sales while it’s dollar revenue these days.)

One major trend that stands out to me is the continued performance of MLB The Show 21, carrying over from being last month’s chart-topping smash hit. As I mentioned in April, it’s the first time the game is multi-platform rather than a PlayStation exclusive. This is proving a smart decision commercially, considering the game rounded out the Top 3 in May, outpacing the juggernaut that is Call of Duty: Black Ops Cold War. And that doesn’t even include digital contribution on Xbox platforms! This is exactly why Major League Baseball made the call to open up its potential audience, and they are scoring big as a result.

Elsewhere on the chart is the resurgence of 2019’s Mortal Kombat 11, maintaining its spot at sixth place for the second straight month with that classic movie bump. The latest franchise film debuting in late April. Ultimately makes me wonder what’s next for developer NetherRealm Studio, especially given the team will be impacted by the shake-up at Warner Bros Media. No one knows, at least not publicly, where it will end up.

As for new titles, Biomutant is the only other May release on the aggregate chart, reaching #16. The first effort from a new studio called Experiment 101 and published by THQ Nordic, it did make the Top 10 on both PlayStation and Xbox ranks at #8 and #9 respectively.

That said, it’s chart time folks!

Top-Selling Games of May 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Resident Evil Village
  2. Mass Effect: Legendary Edition
  3. MLB The Show 21^
  4. Call of Duty: Black Ops Cold War
  5. New Pokémon Snap*
  6. Mortal Kombat 11
  7. Mario Kart 8*
  8. Returnal
  9. Animal Crossing: New Horizons*
  10. Minecraft
  11. Call of Duty: Modern Warfare 2019
  12. Marvel’s Spider-Man: Miles Morales
  13. Super Mario 3D World + Bowser’s Fury*
  14. Super Smash Bros. Ultimate*
  15. It Takes Two
  16. Biomutant
  17. Assassin’s Creed Valhalla
  18. Monster Hunter Rise
  19. The Legend of Zelda: Breath of the Wild*
  20. Pokémon Sword & Shield*

Top-Selling Games, 2021 Year-to-Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Resident Evil Village
  3. MLB The Show 21^
  4. Super Mario 3D World + Bowser’s Fury*
  5. Monster Hunter Rise
  6. Marvel’s Spider-Man: Miles Morales
  7. Outriders
  8. Mario Kart 8*
  9. Assassin’s Creed Valhalla
  10. Minecraft

Hardware is up next, where strength in Nintendo Switch helped to alleviate supply headwinds as category spend rose 5% year-over-year to $244 million. Last year’s figure was only a bit lower at $233 million. This led to the figure for 2021 so far to jump 36% against the same period last year, upwards of $1.9 billion in spend last month compared to $1.43 billion. Out of the three major categories, it experienced the best annualized growth by far.

The usual headliner is Nintendo Switch, and that’s no different in May. It has now led the hardware rankings by unit sales for 30 (!!) consecutive months, an ongoing record that I don’t think will be broken until new generation manufacturing ramps up during the holidays or even 2022.

Switch was also the best-selling platform as measured by dollar sales last month, and of course Nintendo retained the top spot when expanding to the full year. The steadfastness of the Japanese publisher’s hybrid hardware is more impressive every single month, leading me to wonder if those rumors about a more powerful, revised model aren’t as close as some think. (Well, some claimed it would be announced before the big E3 show, which clearly did not happen.)

On the PlayStation 5 side, The NPD Group didn’t share much in the way of details. I was able to confirm that its status as the fastest-selling console in tracked history has ended at six months. Its usurper is the Game Boy Advance, which had a tremendous holiday back in 2001. This is more due to production than demand, of course, a theme that you’ve seen me mention many times recently.

Performance of Xbox Series X|S isn’t clear from May’s report, other than Piscatella’s comments about very high demand. It seems like Microsoft is outputting the least amount of consoles, though that’s complete speculation. And we won’t know, because it won’t ever again share hardware units sold, instead opting towards Xbox Game Pass subscription and other player engagement statistics.

The final category is Accessories, which had the toughest time during May 2021. Monthly consumer spending here dipped 8% to a total of $142 million versus last year’s $154 million. No doubt impacted by its correlation with new hardware production, as new buyers often scoop up accessories with their purchases of a shiny new gaming box.

Still, for the year as a whole, Accessories segment crossed $1 billion in spending during May, which is 17% higher than the $877 million back in 2020.

As I confirmed directly with Piscatella, Sony’s White DualSense controller was the top-selling game pad of the month, reflecting a consistent trend since the PlayStation 5’s start. Personally I say it’s well-deserved as a great piece of modern tech, enhancing the experience of traditional input controls.

The report did share a bit of detail into Steering Wheels too! This sub-category jumped 45% year-on-year. Apparently the Logitech G920 Driving Force Racing Wheel is.. hm, driving this growth, since it’s the year’s top seller as of the latest report.

Another month, another big sales reaction piece!

Domestic spending proved resilient last month, as we’re in an era where subscriptions and ongoing content bolster the traditional delivery methods and console generational cycles. Demand for gaming is still high even as vaccinations increase, it’s just a matter of hardware companies keeping up with output. Which is somewhat out of their control, given the global chip situation.

For even more behind the numbers, including a variety of different software charts and further reading, check out Piscatella’s helpful thread here or The NPD Group’s website.

Moving into the heat of the summer here in the U.S., June’s release schedule boasts some of the biggest platform exclusives of the year in PlayStation 5’s combat platformer Ratchet & Clank: Rift Apart then Mario Golf Super Rush from Nintendo, which I anticipate will both chart very well. Bandai Namco’s stylish action game Scarlet Nexus also debuts later this month, will be curious if it can garner enough interest here to gain a Top 10 spot.

Anything surprise you in May? Have you played any of the new games charting here? What’s your prediction for best-selling title in June? As always, thanks for stopping by. Be safe and stay well, all!

*Digital Sales Not Included

^Xbox Digital Sales Not Included

Sources: Capcom, Chris Lynch (Photo Credit), Onur Binay (Photo Credit), The NPD Group.

-Dom

MLB Shows Well in April During Slight Decline in U.S. Games Industry Sales

While not quite another month full of record highs, April 2021 still boasted numerous commercial highlights for the U.S. games industry in the scheme of things.

Yesterday, The NPD Group shared its monthly sales report for consumer spending on various parts of the games industry within the domestic market.

More than a year into the COVID-19 pandemic, we’re starting into the time period where the impact from stay-at-home restrictions caused some of the biggest months in tracked history. Which means tough comparisons when looking at this year versus the same time in 2020.

Overall, total consumer spending was down a bit in April 2021 driven mainly by lower hardware output, offset by new launches, mobile, subscription and downloadable content within the software category. Still, consumers have spent nearly $20 billion on Content, Hardware and Accessories during the year so far. Which is over 20% higher than the same time period in 2020.

While Nintendo Switch and PlayStation 5 continue impressive runs, it wasn’t enough to stave off a double-digit decline in Hardware and Accessories for the month. No doubt affected by global semiconductor shortages and manufacturing slowdowns. Both of these categories are still showing notable spend increases when aggregating 2021 to date.

New annual sports release MLB The Show 21 stepped into the spotlight during its release month, snatching the top spot on the overall and PlayStation software charts. The ever-present Call of Duty series plus a brand new Pokémon side entry in New Pokémon Snap rounded out the Top 3, while strong debuts from both NieR Replicant ver.1.22474487139 and Returnal led the Content category to an increase.

“Hardware shortage impact [is] being felt, will continue to be felt throughout 2021,” said NPD Group’s Mat Piscatella. “Accessories [are] now being impacted by supply chain/logistics as well.”

That said, there’s still plenty of growth to cover, so it’s time to dig into all the numbers.

United States Games Industry Sales (April 4th, 2021 – May 1st, 2021):

Consumer spending in general declined 2% to $4.6 billion in April 2021. This marked the first time monthly overall sales have dipped since back in February 2020 i.e. right before the start of country-wide quarantines plus the massive success of Animal Crossing: New Horizons.

It feels like forever ago, I know.

Now, this isn’t actually a bad sign. In fact, it’s a perfectly healthy month historically. It’s just slightly lower because last April set the record for setting records when it comes to domestic industry spending as I documented at the time. (Note that since that time, NPD Group has reclassified its categories and added to its coverage, so the public numbers themselves aren’t necessarily comparable.)

When expanding the timeline and looking at the first four months of 2021, total spending is up 21% since this time last year to $19.6 billion. Mainly because of momentum during the first couple months of this year driven by demand for next generation consoles and games to play on those systems, especially mobile, services plus add-on content for existing titles.

Speaking of software, the largest category of Content generated $4.2 billion in sales during April. This is up from $4.1 billion in April 2020. Year-to-date is even more impressive, hitting upwards of $17 billion when compared to $14.3 billion.

Expansion in Content is due to the release schedule picking up, ongoing appeal of subscription services plus legacy title support as the biggest older games still continue to chart.

Taking the lead on the overall software rankings in April 2021 was MLB The Show 21, which is dual published by Sony Interactive Entertainment on PlayStation devices then MLB Advanced Media on the Xbox family. This is a huge year for the annual franchise, marking the first time it’s been available on Microsoft’s consoles. Not only that, it launched directly into the Xbox Game Pass subscription service. Judging by its placement, the impact on sales seems to have been additive rather than cannibalizing.

A combination of PlayStation’s usual player base plus a new audience of Xbox fans led the baseball game developed by Sony’s San Diego Studio to set a series record for launch month dollar sales. Because of this, it’s immediately the 3rd best-selling title of 2021. And this isn’t even considering digital revenue from Xbox. Is this an appropriate time to say that the team knocked it out of the park?

Another impressive start was Nintendo’s New Pokémon Snap, landing at the third spot overall. Similar to above, this also doesn’t even consider digital sales since Nintendo notoriously doesn’t participate in that part of reporting. Predictably, it was the biggest title on Nintendo platforms during April. First month retail sales more than doubled that of July 1999’s Pokémon Snap debut, marking a picture-perfect return for the previously dormant spin-off from one of the world’s most successful brands.

Elsewhere on the software ranks, Outriders now has a full month on record and dropped one spot to fourth place. Square Enix’s third person action game was another with a simultaneous release on Xbox Game Pass, a rare occurrence for third party titles. The shlooter attracted 3.5 million unique players during its first month, a result that saw its publisher hinting at future content by saying it’s on track to being its next hit franchise. Unfortunately, it’s still unstable for many folks, resulting in continuous patches from development team People Can Fly.

In what I’d call more than a pleasant surprise, another Square Enix title landed at #5 this time in NieR Replicant ver.1.22474487139 (yes, I always have to Google the full title like most of us). The “version update” of the first NieR game that released a couple generations ago was handled by Toylogic. Replicant charted well above 2017’s NieR: Automata which started at ninth in its March 2017 debut month, popularity no doubt bolstered by Automata engaging more mind-share towards the cult classic franchise.

Two other notable titles within the Top 10 were PlayStation 5 exclusive Returnal, with only two days of tracking, then It Takes Two published by Electronic Arts as part of its EA Originals indie program. Returnal at the 8th spot is a strong debut for new IP from Housemarque Games, long-time Sony collaborator and arcade game specialist. It Takes Two continues its quietly consistent success, climbing a dozen spots to #9. The co-op adventure game from Josef Fares’ Hazelight Studios recently sold a million units globally in under a month.

Full charts incoming.

Top-Selling Games of April 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. MLB The Show 21^
  2. Call of Duty: Black Ops Cold War
  3. New Pokémon Snap*
  4. Outriders
  5. NieR Replicant ver.1.22474487139
  6. Mortal Kombat 11
  7. Monster Hunter Rise
  8. Returnal
  9. It Takes Two
  10. Mario Kart 8*
  11. Call of Duty: Modern Warfare
  12. Marvel’s Spider-Man Miles Morales
  13. Super Mario 3D World + Bowser’s Fury*
  14. Minecraft
  15. Animal Crossing: New Horizons*
  16. Super Mario 3D All-Stars*
  17. Super Smash Bros. Ultimate*
  18. Assassin’s Creed Valhalla
  19. Pokémon Sword & Shield*
  20. The Legend of Zelda: Breath of the Wild

Top-Selling Games, 2021 Year-to-Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Super Mario 3D World + Bowser’s Fury*
  3. MLB The Show 21^
  4. Monster Hunter Rise
  5. Marvel’s Spider-Man Miles Morales
  6. Outriders
  7. Assassin’s Creed Valhalla
  8. Mario Kart 8*
  9. Minecraft
  10. Animal Crossing: New Horizons

Hardware and Accessories tell a marginally different story, declining from last year’s staggering highs.

For Hardware, overall console dollar sales came in at $296 million which is 30% lower than April 2020. Console manufacturers are facing supply-side constraints as inventories can’t keep up with rabid demand. This is going to continue even throughout the full year, as explained by executives from Nintendo, Sony and Microsoft alike during recent earnings presentations.

Even so, year-to-date figures aren’t as gloomy. These are up 42% compared to the same time frame during 2020, hitting $1.7 billion compared to $1.2 billion.

Nintendo Switch continues to be the bellwether, leading both units and dollar sales for the month of April. By my calculation, that’s 29 consecutive months of Switch leading the U.S. by unit sales. An incredible streak, I’d have to imagine it’s the best in domestic tracking history for a single console. It remains the top seller for 2021 so far, and that’s ahead of rumors swirling around a potential new model. (Which, in fairness, have been happening for a while. It’s only recently they have solidified into more tangible information.)

I wrote recently about how Nintendo reported its most profitable year ever, driven by global annual Switch unit sales of nearly 29 million for last fiscal alone ending in March. The introduction of a more powerful iteration, estimated around September or October based on the rumor mill, would continue its consistent pace into the holiday season and beyond even at a higher price point.

That’s not to say competitors aren’t doing big things either. Now in its six month on sale, Sony’s PlayStation 5 remains the fastest-selling console ever domestically. No doubt driven by the appetite of early adopters purchasing new and old games alike then many PlayStation 4 versions carrying over to the current generation, making for a smoother transition.

Not much in the way of information on Microsoft’s Xbox Series X|S performance on the hardware side. At present, it’s about production rather than customer appetite. It seems like Sony is outpacing Xbox in its supply chain, thus leading in the early goings.

In a theme that parallels Hardware, dollar sales for Accessories were down in April though are still exhibiting strength when taking the year as a whole.

The Accessories category dipped 23% in April, generating $168 million in domestic consumer spending. However, its total is $885 million for 2021 to date which is growth of 22%.

Sony’s PlayStation 5 accessories continue their category dominance. The DualSense White Controller led dollar sales for April and retained its spot as the year’s top seller. The Pulse 3D Wireless headset was the month’s runner-up. These often go as hardware goes, and PlayStation 5’s record pace is driving its accessories to be the most popular right now.

Note: The new DualSense colors with fancy names from the image aren’t out until June. Midnight Black (dope!) and Cosmic Red (not for me) are currently up for pre-order.

April 2021 saw various industry trends continuing. These include content growth supplemented by services, mobile and additional content, Nintendo’s evergreen titles constantly on the charts plus PlayStation 5’s record early momentum. Though it couldn’t contend with last year’s record April month itself when combining the various sales vectors. I won’t hold that against it, the year so far has been extremely impressive even with manufacturing limitations for hardware platforms.

“Given where we are with both supply and the pandemic-driven year ago comparable period, the market is holding remarkably well,” Piscatella added in additional commentary on the monthly report.

Looking ahead, next month’s report will be available in just a few short weeks covering May 2nd to May 29th. I expect a phenomenal start for Resident Evil Village, high demand for Mass Effect Legendary Edition plus ongoing strength for major third parties and Nintendo exclusives. Switch will probably lead again, though PlayStation 5’s record start should continue as well.

Until then, enjoy some fun games, stay healthy, and especially my American friends, please continue to be safe things as things open up here with vaccinations on the rise. See you again.

*Digital Sales Not Included

^Xbox Digital Sales Not Included

Sources: Electronic Arts, Enrique Vidal Flores (Image Credit), MLB Advance Media, NPD Group, PlayStation Blog, Square Enix.

-Dom

Switch & Monster Hunter Give Rise to Record March for U.S. Games Industry

While vaccinations in the United States thankfully continue to increase, so too does the rate at which people around the country spend money on video games.

Industry tracking firm The NPD Group released its March 2021 monthly report on consumer spending across the games industry today. And it’s a significant one for a number of reasons.

First, it marks a full year of tracking since the pandemic began. Comparisons to last year will now be reflective of the spending burst that began during the initial stay-at-home restrictions around March 2020.

On the software side, Activision’s Call of Duty regains top honors while new releases from Japanese publishers Capcom and Square Enix complete the Top 3. Then, one Mario spin-off franchise hits a major milestone within its genre. While Nintendo Switch’s continues its ongoing dominance atop the hardware rankings, PlayStation 5 maintains its quick start since launching back in November. Sony also retains leadership in the accessory space with its latest controller iteration.

While technically this March report does include a handful of days from February and April, continued quarantine efforts drove record levels and a substantial first quarter, with consumers spending nearly $15 billion on games, consoles and accessories during the first three months of the year.

Before diving into the report, I want to express my thanks to everyone working or volunteering during this still very difficult time. Please be safe and well. And hopefully find some downtime during which you can enjoy games!

Now. The numbers, please.

United States Games Industry Sales (February 28th, 2021 – April 3rd, 2021):

The above chart courtesy of NPD Group tracks total spending in the U.S. games industry over time since the beginning of 2020. As you’ll see, March 2021 topped $5.6 billion which is an increase of 18% since the same month last year. Which is a huge figure, considering Nintendo launched its record-breaking Animal Crossing: New Horizons at that time and nearly everyone was home for the entire time.

What this means is that March 2021 set a new record for a March month across the history of tracking, dating back to the 1990s.

When expanding to the first three months of 2021, sales saw an increase of 30% to $14.9 billion. While solid, this first quarter growth actually sounds more impressive than it is considering the first two months last year were early coronavirus days for the country.

Video Game Content i.e. software and related revenue from subscriptions category is the largest contributor, as it rose 12% to $4.6 billion in March. For Q1 as a whole, these sales jumped 25% to $12.8 billion.

After a month in second place, Call of Duty: Black Ops Cold War retakes the top position on the overall software list. It was the best-selling title for both the first quarter and the prior 12 month time frame.

Meanwhile, Capcom’s Monster Hunter Rise captured the second spot after it launched exclusively on Nintendo Switch in late March. The latest launch in the company’s second largest franchise immediately became #4 on the year’s top sellers list. Not to mention it’s already achieved a startling statistic. As measured by dollar sales, with just over a week of tracking, it’s the second best-selling Monster Hunter game in series history behind only 2018’s Monster Hunter World, which is Capcom’s number one seller of all time.

Rounding out the Top 3 on the overall chart is Outriders, for which I’ll shamelessly plug my recent review. The brand new shlooter IP published by Square Enix also debuted at the 3rd spot on both PlayStation and Xbox platform charts, causing it to land as the 10th best-selling title overall during 2021 to date. That’s after only three days on sale plus without the consideration of downloads via Xbox Game Pass, which is only counted in the spending categories rather than allocated to individual releases. This successful start, especially for something that isn’t a sequel or part of a known series, partly proves that games sell just as well when launching into subscription services. If not better, due to word-of-mouth and peer recommendations.

As expected, Nintendo-published projects littered the overall ranks due to the continued pace of Switch sales and amazing attach rates. The most notable being Mario Kart 8, the greenest of evergreen titles. During March 2021, Mario Kart 8 became the best-selling racing game in tracked history. That includes the Deluxe edition, though not any digital portion of that or the base version! The prior record holder was Mario Kart Wii, released back in 2008.

NPD Group Analyst Mat Piscatella commented on the software category in particular. “In content, Nintendo evergreens continue to impress,” he said. “Subscriptions are here to stay, will continue to grow and gain importance. No significant downsides evident, plenty of upside suggested.”

Top-Selling Games of March 2021, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Monster Hunter Rise
  3. Outriders
  4. Super Mario 3D World + Bowser’s Fury*
  5. Marvel’s Spider-Man: Miles Morales
  6. Mario Kart 8*
  7. Assassin’s Creed Valhalla
  8. Animal Crossing: New Horizons*
  9. Super Mario 3D All-Stars*
  10. Minecraft
  11. Call of Duty: Modern Warfare 2019
  12. Super Smash Bros. Ultimate*
  13. Pokémon Sword & Pokemon Shield*
  14. Mortal Kombat 11
  15. Crash Bandicoot 4: It’s About Time
  16. The Legend of Zelda: Breath of the Wild*
  17. Madden NFL 21
  18. NBA 2K21*
  19. Super Mario Party*
  20. FIFA 21

Top-Selling Games, 2021 Year-to-Date, U.S., All Platforms (Physical & Digital Dollar Sales):

  1. Call of Duty: Black Ops Cold War
  2. Super Mario 3D World + Bowser’s Fury*
  3. Marvel’s Spider-Man: Miles Morales
  4. Monster Hunter Rise
  5. Assassin’s Creed Valhalla
  6. Mario Kart 8*
  7. Minecraft
  8. Madden NFL 21
  9. Animal Crossing: New Horizons*
  10. Outriders

When it comes to the Hardware category in the U.S., Japan rules once again. Accelerated by popular Nintendo and Sony platforms, domestic spending on consoles boosted 47% to $680 million in March 2021. That’s yet another March record, beating out the $552 million from the Nintendo Wii and PlayStation 3 era of March 2008.

For the first quarter this year, sales in this category reached $1.4 billion. Naturally, this is a significant jump since the late generation cycle months of 2020, an increase of 81% year-on-year.

Nintendo Switch earned the top spot as measured by both units sold and dollars generated. This marks the 28th consecutive month that the hybrid platform has led by unit sales, all the more impressive given Nintendo’s anti-discount strategy. Switch also led the first quarter by number of units sold.

Out of its main competitors, PlayStation 5 is faring the best during its early days despite inventory constraints due to chip shortages plus a notable lack of exclusives during its launch window. Sony’s platform is officially the fastest-selling console in the history of NPD Group tracking, as measured by both unit and dollar sales during the first 5 months after launch. While the report wasn’t specific, I believe its predecessor held the spot previously.

There’s no word specifically on Xbox Series X|S performance other than mentioning that new generation boxes are moving off retail shelves as fast as manufacturers can ship them. It sounds like Microsoft’s production has been hit the hardest by the global chip situation, since supply dictates commercial fulfillment at this stage.

Gaming Accessories are the final category here tracked in this monthly report. NPD Group shared that it also boasted a historic month, hitting a March record spending amount of $300 million. That’s up 26% since March 2020.

Across the first three months of the year, accessory revenue climbed 42% to $717 million in total.

During both the month and quarter, the standard PlayStation 5 DualSense Wireless Controller variant led all other accessories in parallel to the success of its corresponding hardware.

For those keeping score, that’s a set of March month records for total, hardware and accessory spending during March 2021. It’s a combination of mobile gains, new hardware sell outs, subscription revenues and flagship software launches from major publishers bolstering last month to record levels across these areas.

“[The] market might be more smoothly transitioning to cyclical growth than I’d expected,” Piscatella added. “What happens next depends on the chip situation and content development; supply as or more important than demand.”

I’m anticipating very good if not great momentum in the coming months, as the release schedule picks up especially on the third party and PlayStation side. Even knowing a lot of game delays pushed to later this year or into 2022. April releases include MLB The Show 2021, now multi-platform and always a steady seller, in addition to the revived Pokémon Snap. Combine this with the bulk of Outriders sales plus Monster Hunter Rise momentum and I wouldn’t be surprised to see April generate certain records of its own.

Until then, please wear a mask, wash your hands and be safe everyone. I’m out for now!

*Digital Sales Not Included

Sources: Capcom, Microsoft, Nintendo, NPD Group, Square Enix, Zachary Hsieh.

-Dom