Video Game Spending Statistics

How much consumers spend on video games

A total of $56.6 billion was spent on video games in 2022, according to the NPD Group, a market research firm. This includes consoles, games, and accessories.

Given that there are 131.2 million households in the United States, a conservative average estimate of gaming spending per household is $431. This assumes that there's one gamer per household.

Spending on video games varies by family size, structure, and income. A family with kids, for example, may be more likely to spend on video games. And families with higher income could be expected to have more cash to splurge on a new console or buy new video game releases on a more consistent basis.

That's backed up by data from the Bureau of Labor Statistics. Here's how we broke down that data.

Families spent an average of $698 on "other entertainment equipment and services" in 2022.

The "other entertainment equipment and services" category includes spending on video games, as well as a range of other products that do not fall into the other major entertainment categories of fees and admission; television, radio, and sound equipment; and pets, toys, hobbies, and playground equipment.

It's more than likely that not all of the $698 spent by the average American family in that category was spent on video games. And the data reveals that average spend in this category is pulled up significantly by high-income households.

While the category is broad, it is a useful proxy for video game spending. For example, spending grew by nearly 50% from 2019 to 2020 and by 60% from 2020 to 2021 during the height of the COVID-19 pandemic, when, according to the Entertainment Software Association, video game spending and time spent playing video games grew significantly.

Video game spending by income

The top 20% of earners spent $1,843 on "other entertainment," including video games, in 2022, according to BLS. The next lowest income quintile spent $588 and the lowest income segment spent just $88 over the course of the entire year. The average spend on "other entertainment" across all income levels was $698.

Households that earned $200,000 or more in 2022 spent $2,401 on "other entertainment," which includes video games.

It's logical that households with more income spend more on video games, which clearly fall into discretionary spending. Those households tend to have more disposable income to spend on categories like entertainment.

With video games and consoles becoming more expensive and microtransactions becoming the norm across platforms, it's not difficult to see the most wealthy households spending over $1,000 a year on video games.

Video game spending by family structure

Married couples with kids spent $1,244 on "other entertainment," including video games, in 2022, compared to the average spend of $698.

Video games have always been a staple birthday or holiday present for kids and they're a great way to keep kids entertained, so it's no surprise that families with kids tend to spend more in the category that includes video games than families without kids.

Video game spending by year

Americans spent $56.6 billion on video games in 2022. That total includes spending on consoles, games, and accessories, and is based on data from the NPD Group and Entertainment Software Association.

Overall spending jumped from $43.5 billion in 2019 to $56 billion in 2020, and grew another $3.5 billion to $59.6 billion in 2021 as Americans sought to fill their time during the COVID-19 pandemic.

Spending fell by $3 billion from 2021 to 2022, but is far from returning to pre-pandemic levels.

Game purchases drove the spending increase from 2019 to 2020, while spending on consoles grew most from 2020 to 2021.

Notably, console spending grew more in that period than from 2021 to 2022, the first full year that the new, current-generation Xbox and PlayStation consoles were available. Spending on those consoles may have been stymied by supply chain disruptions that made them difficult to come by, however.

Video game revenue by segment

Global video game revenue is projected to exceed $300 billion by 2025, according to PwC.

Social and casual games, like mobile games, already account for over 50% of all video game revenue. That share is expected to continue to grow at the expense of all other categories, although revenue from PC games, console games, and in-game advertising are projected to increase as well, just at a slower pace.

Gaming subscriptions and cloud gaming

Two trends are emerging in the video game industry that could reshape how consumers game -- and how they spend on gaming: video game subscription services and cloud gaming.

Gaming subscription services operate like Netflix or any other video streaming service. Subscribers pay a monthly subscription fee and get access to a library of games. The most popular services are Xbox Game Pass and PlayStation Plus.

Tens of millions of gamers subscribe to those services and the model has become a steady revenue source for Microsoft and Sony.

Microsoft reported 25 million players had signed up for Game Pass as of January 2022 and the company attributed a 13% increase in revenue from Xbox content and services to "first-party content and Xbox Game Pass" in its SEC filing covering the quarter ending in Sept. 30, 2023.

Sony reported 47.4 million PlayStation Plus subscribers at the end of March 2023.

The top tier of Xbox Game Pass also provides gamers with access to Xbox Cloud Gaming, which allows players to stream Xbox games onto internet-connected devices even if they don't have an Xbox. If the cloud model catches on, it could make gaming more accessible and affordable to families who don't want to splurge on a high-end console or PC.

The best-selling video games and consoles

Best selling video games of 2022

Call of Duty: Modern Warfare 2 was the top-selling game for PC and console in 2022, while Candy Crush Saga was the top-grossing mobile game that year, according to the Entertainment Software Association.

PC and console games are listed as top selling while mobile games are listed top grossing, because many of the most successful mobile games are free to download and play and generate revenue via in-game microtransactions. PC and console games on this list, however, must be purchased to play.

The best-selling video games of all time

The all-time classic Tetris tops the list of best-selling video games of all time, with 520 million copies sold since its release in 1984.

The other all-time best sellers were released after 2005, and some of the relatively older games like Minecraft,Skyrim, and Grand Theft Auto V have had impressive staying power.

The best-selling consoles of all time

Sony's PlayStation 2 narrowly squeezes out the Nintendo DS for the best-selling video game console of all time.

Sony and Nintendo dominate the list, accounting for nine of the top 10 most-sold consoles in history. Keep in mind that this list does not include PC sales, the platform of choice for a significant number of gamers.

Credit and debit cards for gamers

Whether gaming is your own hobby or a go-to gift for your kids, it's likely that you'll be spending a decent chunk of change on hardware, games, in-game features, or accessories.

Despite gaming revenue surpassing that of movies and music, there are only a few credit and debit cards designed specifically for gamers. Those cards could be worth looking into if you know you're a consistent spender on gaming and have some loyalty to a particular console.

The best credit cards for gamers vary based on platform of choice and the type of purchases expected, such as spending on hardware, accessories, games, or in-game purchases.

For PlayStation gamers, the PlayStation Visa Credit Card could be a good fit if you're making purchases through the PlayStation™Store consistently. Xbox gamers could consider the Xbox Mastercard.

The big draw for both of those cards is the 5x points per dollar on purchases made through the PlayStation™Store and Xbox and Microsoft Store, respectively. Those cards, however, aren't as competitive in other respects as some of The Motley Fool Ascent's top rated credit cards.

Check out The Motley Fool Ascent's full list of credit card reviews before making a decision on which card is right for you.

Sources

• Bureau of Labor Statistics (2023). "Consumer Expenditure Survey."
• Entertainment Software Association (2023). "Essential Facts."
• Gamerant (2023). "The Best-Selling Video Game Consoles of All Time, Ranked."
• IGN (2023). "The 10 Best-Selling Video Games of All Time."
• Nintendo (2023). "Dedicated Video Game Sales Units."
• NPD Group (2023). "2022's Strong Finish Brings Optimism to 2023."
• PWC (2022). "Global Entertainment & Media Outlook 2022–2026."