Consumers spent additional $1.74 billion on video game content in Q2

The NPD Group’s latest Games Industry: Total Consumer Spend report suggests consumers spent an additional $1.74 billion on video game content during the second quarter. NPD classifies this additional category of content as anything that involves gaming outside of new physical video and PC game software. Examples include purchases for social network games, downloadable content, mobile games, digital downloads, subscriptions, game rentals and used game purchases. Consumers spent a total of $1.44 billion on physical games for consoles and PCs during the quarter and, in total, spent $4.5 billion on video game content, hardware and accessories. That figure is up 1% from the same quarter last year. “While the new physical retail channel still generates the majority of industry sales, our expanded research coverage allows us to assess the total consumer spend across the growing number of ways to acquire and experience gaming, including mobile apps and downloadable content,” NPD Group industry analyst Anita Frazier said. Read on for the full press release from NPD.

RESEARCH SHOWS ADDITIONAL $1.74 BILLION SPENT ON VIDEO GAME CONTENT FOR SECOND QUARTER 2011
Total Consumer Spend on Hardware, Content, and Accessories in the U.S. Estimated at $4.5 Billion

PORT WASHINGTON, NEW YORK, October 5, 2011 – According to the Q2 2011 Games Industry: Total Consumer Spend report from leading market research company, The NPD Group, in addition to the $1.44 billion spent in the U.S. by consumers on new physical video and PC game software in the second quarter of 2011, the total consumer spend on content via other monetization methods, including used games, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content, and mobile games, is estimated at $1.74 billion. The total amount spent by consumers on hardware, content and accessories is estimated at $4.5 billion, an increase of 1 percent versus Q2 2010.

“While the new physical retail channel still generates the majority of industry sales, our expanded research coverage allows us to assess the total consumer spend across the growing number of ways to acquire and experience gaming, including mobile apps and downloadable content,” said Anita Frazier, industry analyst, The NPD Group. “Through a combination of point-of-sale and consumer research tracking, The NPD Group is providing an expanded, more comprehensive measure of a dynamic and rapidly evolving games industry.  We are excited that we are expanding our coverage of the consumer spend in emerging distribution channels to cover the UK, France and Germany in early 2012.”

Methodology
The estimates are published in NPD’s new report, Games Industry: Total Consumer Spend –released by The NPD Group in late September 2011 – and are derived leveraging NPD’s portfolio of physical POS tracking (Retail Tracking Service) and consumer research including the Games Acquisition