Console Market Reached A Record High $61bn in 2021
Research and analytics firm Ampere Analysis estimated that $60 billion was spent on console hardware, games, and services in 2021. Further $1 billion growth is expected this year.
Data, research, and analytics firm Ampere Analysis has released a report on consumer spending in the console market. According to the report, the firm estimates that in 2021 the total spending on console hardware, games, and services amounted to $60 billion which the firm outlines as "a record high".
The firm’s head of games research, Piers Harding-Rolls, however, claims that this growth could have been even higher if it hadn't been held back by the lack of availability of PlayStation 5 and Xbox Series X and S. Although the higher-priced new consoles influenced the increase in total spending as well as contributed in higher adoption of subscription services.
Spending on gaming content including games, expansion packs, and in-game purchases remained relatively steady declining by just 1% compared to the year earlier. The analyst notes that it is still "a great result" taking into account that the 2020's boost was driven by the lockdown measures that are currently receded.
In 2021 physical games spending dropped below 30% which was caused by the growing popularity of digital titles. In addition, the analyst claims that the gradual decline in the market share of packaged game sales compared to digital ones will continue in 2022 forecasting a 26% drop this year.
2021 also marked a 19% year-on-year growth in spending on console-based subscription services which was mainly caused by improved adoption of Xbox Game Pass Ultimate with Nintendo Switch Online and PS Plus also contributing to it.
According to Ampere's forecast, the console market will continue to grow in 2022 breaking another record of over $61 billion.
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