Video Game Spending Was Driven By Microtransactions In 2018
Excerpts from an article by Erik Kain in Forbes
2018 was a great year for the US video game industry according to the NPD Group. Overall, industry spending in the US was up 13% over 2017, with total spending reaching $16.67 billion over 2017’s $14.716 billion. This number doesn’t include everything, however. Once you figure in subscriptions and microtransactions, total spending balloons to $43.4 billion over the previous year’s $36.9 billion.
Hardware, Software and Accessories & Game Cards all saw growth in 2018. Hardware was up 8%, driven largely by the Nintendo Switch. Software, not including MTX or subscriptions, was up 7%. But Game Accessories & Game Cards (headsets, gamepads, etc.) was up a whopping 33%.
Still, the total of all three of those categories was just $16.67 billion. That’s not even half of the total $43.4 billion the NPD says US consumers spent on video games in 2018. In fact, that leaves $26.73 billion up for grabs, all of which comes from the NPD’s “Software, including in-game purchases and subscriptions” category.
When you look at it in this light you can really see why Games As Service have taken off in recent years, and why the industry puts so much emphasis on microtransactions.
Read the full article on Forbes