U.S. video game spending rises 12% y/y in May, says Circana

Circana analyst Mat Piscatella said that May 2023 U.S. consumer spending on video game content, hardware and accessories totaled $4.1B, a 12% increase when compared to a year ago. Spending gains were seen across Content, Hardware, and Accessories. Year-to-date consumer spending was flat when compared to the same period in 2022, at $21.8B. Spending on video game content grew 9% in May when compared to a year ago, reaching $3.6B. Console full game and add-on content spending increased 58% when compared to May 2022, offsetting declines across Mobile and PC. Video game hardware spending increased 56% vs YA, to $338M. This is the highest VG hardware spend for a May month since the $427M reached in May 2008. Double-digit percentage growth in both PlayStation 5 (SONY) and Switch (NTDOY) dollar sales again offset declines on other platforms. Year-to-date hardware spending is now 23% higher when compared to the same period in 2022, at $2.2B. Switch was the best-selling hardware platform in both unit and dollar sales during May 2023. Consumer spending on Switch hardware reached an all-time May high for the platform, while unit sales were 2nd highest ever for the platform in a May month, trailing only May 2020. PlayStation 5 continues to lead the 2023 hardware market across both units and dollars, Piscatella said. Other publicly traded companies in the video game space include Microsoft (MSFT), Ubisoft (UBSFY), Take-Two (TTWO), Electronic Arts (EA), Activision Blizzard (ATVI), Tencent (TCEHY), and Roblox (RBLX).