According to Circana’s latest report, the U.S. video game industry saw a notable 10% increase in spending in July compared to the same period last year.
This upturn was seen across all categories (hardware, content, and accessories) and indicated that the market was recovering from previous declines.
See also: Gaming industry shows signs of recovery in 2024: report
According to GamesIndustry.biz, total video game revenue reached $4.77 billion in July 2024, a significant increase from $4.35 billion in July 2023.
The current year’s figures also reflect positive momentum, with total revenue reaching $32.09 billion, representing 2% year-on-year growth. These figures show a revival in consumer engagement, likely driven by highly anticipated releases and the promise of new hardware on the horizon.
The main drivers of this upswing include Electronic Arts Inc‘S EA EA Sports College Football 25, which Circana called the best-selling game of the year so far.
However, the industry’s overall outlook for 2024 remains cautious. Mat PiscatellaVideo game industry consultant at Circana, pointed out: “This will continue to be a difficult year for video game manufacturers and publishers, as an overall decline in spending, albeit in the low single digits, is expected.”
Circana’s Future of Video Games Report paints a more optimistic picture for 2025, predicting a significant recovery. This positive forecast depends on the introduction of Nintendo Switch‘S NTDOY Next-generation hardware platform and the highly anticipated release of Take-Two Interactive Software Inc‘S TWO Grand Theft Auto 6which, in Piscatella’s opinion, could be “the biggest entertainment launch in US history.”
Digital delivery continues to be a strong trend, and Circana predicts continued dominance in this space. The report notes that “forever” games like Fortnite and Roblox will continue to consume a lot of players’ time, potentially changing the way new titles compete for attention.
While video game hardware sales are expected to decline this year due to lower average prices and lower sales, Circana points to an interesting shift.
More gamers are turning to easily accessible platforms like PCs and mobile devices, helping to cushion the decline in traditional console sales. The report specifically mentions Valve’s Steam Deck as an “emerging and exciting area of video game hardware.”
“The transition to the new normal in the video game market has not been painless,” added Piscatella. Nevertheless, he remains confident about the long-term outlook: “The long-term outlook remains optimistic, with 2025 in particular holding significant growth potential.”
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