U.S. video game spending fell 15% in January, says Circana

Circana analyst Mat Piscatella said that January 2025 projected U.S. consumer spending on video game hardware, content and accessories fell 15% when compared to a year ago, to $4.5B, while finishing 0.3% ahead of January 2023’s $4.50B. January video game content spending fell 12% vs YA, to $4.1B. Non-mobile subscription spending growth of 13% combined with a 2% lift in mobile spending could not offset declines across other areas of content spending. Console content spending dropped by 35% year-on-year. January video game hardware spending dropped 45% when compared to a year ago, to $205M. This is the lowest January total for video game hardware spending since the $131M reached in January 2020. Double-digit percentage declines compared to a year ago were seen across all major console platforms. PlayStation 5 (SONY) hardware spending dipped by 38% year-on-year, with Xbox Series (MSFT) declining by 50% and Switch (NTDOY) 53%. PlayStation 5 was once again the best-selling hardware platform of the month across both units and dollars. Xbox Series ranked 2nd in hardware spending, while Nintendo Switch edged out Xbox Series to rank 2nd in units sold. January consumer spending on Accessories fell 28% vs YA, to $194M, and finished slightly ahead of January 2023’s $192M. PlayStation Portal was again the month’s best-selling accessory in consumer spending, while the Dual Sense Wireless Controller Midnight Black led in units sold. Other publicly traded companies in the space include Electronic Arts (EA), GameStop (GME), NetEase (NTES), Take-Two (TTWO), Tencent (TCEHY) and Ubisoft (UBSFY).