The video game console upgrade cycle is in full swing and gamers are buying up hardware, software, and accessories.
An NPD Group analyst, according to a post today on thefly.com, says the introduction of the new Xbox Series X from Microsoft and PlayStation 5 from Sony supercharged sales in November, sending consumer spending across the sector surging 35% to hit a record $7 billion.
It's been seven years since consoles were last upgraded and gaming enthusiasts are in a full-throated frenzy buying up titles and gear. Consumers reportedly spent $1.4 billion on new video game hardware in November, a 58% increase from the year-ago period, as the new Xbox and PlayStation systems sold out.
NPD reportedly said the PlayStation 5 sold more units and generated greater dollar sales on its launch date than any other video game hardware platform in history, beating the record set by the PS4 in 2013. Year-to-date hardware spending is up 34% from last year, totaling $4 billion, while adding in video games and accessories saw spending hit $44 billion so far in 2020, a 22% increase.
While the console launch is obviously a big factor in the rise, the video game industry also benefited from stay-at-home orders. With few outlets available for entertainment, consumers created a massive spike in sales, arguably much stronger than otherwise would have occurred in an upgrade year.