US Gamers Spent $14.8 Billion in 2012

US Gamers Spent $14.8 Billion in 2012

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American consumers are still spending money on games, but less than before.

Gaming is serious business. So serious, in fact, that it has grown into an industry that shifts billions of dollars every year. How many billions, you ask? According to the NPD Group, the US just spent $14.8 billion on physical and digital media for 2012.

The figures were presented in the group's report titled "2012 Games Market Dynamics: US", which based its findings on a combination of data tracked at point-of-sale, consumer research, and spending estimates derived from the NPD Group's "retail and publisher partners". The study reveals that gamers had spent $7.09 billion on new physical releases in the previous year, and an extra $1.79 billion in used titles and rentals. Digital content, consisting of full games, DLC, subscriptions, mobile games and social network games, raked in an additional $5.92 billion from US consumers.

The overall total sounds impressive enough, but the figures are down from the numbers in 2011. While digital sales increased by 16% in comparison, physical media sales fell by 21%, or $2.37 billion. This resulted in an overall fall of 9%, or about $1.54 billion difference.

"There were divergent trends when looking at content spending in 2012 as a whole," said Liam Callahan, an analyst for the NPD Group. "When including all other forms of content spending outside of new physical games, the 2012 U.S. games market was more than twice as large as the total spending on new physical games alone."

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So whats the comparison against other forms of entertainment?

Don't worry game industry, I heard the DOW just closed above 14,000 for the first time since 2007. I'm sure some of that will "trickle down" to us gamers eventually. Reagan said so!

Timothy Chang:
The study reveals that gamers had spent $7.09 billion on new physical releases in the previous year, and an extra $1.79 billion in used titles and rentals. Digital content, consisting of full games, DLC, subscriptions, mobile games and social network games, raked in an additional $5.92 billion from US consumers.

Are we still blaming used video game sales? This certainly tells a different story.

It's about 25% of the overall physical sales but, when you combined the physical sales and the digital/DLC/moible/social total into this, you get used sales (and rentals!) being only a little less than 14% of the total sales. And it doesn't even say how much of that total were used games sales and how many were rentals.

I'm sure this will still be an excuse to sell us more DLC and digital subscriptions in the future. Oh well.

gigastar:
So whats the comparison against other forms of entertainment?

This information is not up to date by any means, but when i investigated it used to be "twice as big as music, still falling short on Movies" to sum it up.

redknightalex:

Are we still blaming used video game sales? This certainly tells a different story.

It's about 25% of the overall physical sales but, when you combined the physical sales and the digital/DLC/moible/social total into this, you get used sales (and rentals!) being only a little less than 14% of the total sales. And it doesn't even say how much of that total were used games sales and how many were rentals.

I'm sure this will still be an excuse to sell us more DLC and digital subscriptions in the future. Oh well.

They could easily spin this using BS like "each used copy sold is a new copy not sold", then inflate the "lost revenue" to about triple what used games brought in.

Then in a matter of moment some CEO invokes headlines "PHYSICAL COPIES ARE ONLY 60% AS PROFITABLE AS THEY COULD, USED SALES CONSUMED THAT 40%". Call me cynical.

Naturally though, the barrier of entry for buying a used game is far below the simple difference in price*, as proved by steam sales data. Could be that in case of used games being eliminated from the market, that current $1.79 billion could turn into even smaller sum in digital/physical sales

I'd love to see the used sales and DLC numbers from last year too, could get some interesting (though not conclusive) trend statistics out of it.

*50% lowered price means 320% increase in revenue on steam. That's 8.4 times the regular units

 

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