Key Takeaways
1. March 2024 showed a decrease in console sales in the US, with overall revenue from gaming down by 6% compared to the previous year.
2. PS5 sales led the market but dropped by 26%, while Nintendo Switch sales fell significantly by 37%, and Xbox saw a smaller decline of 9%.
3. Despite lower overall game sales, the success of Assassin’s Creed Shadows helped limit the decline to just 6%.
4. Digital premium game sales increased by 12%, indicating a shift away from physical media.
5. Concerns over high tariffs on imports from China could impact console availability and prices, although Nintendo has chosen not to raise the price of the Switch 2.
Despite the release of well-known titles across various platforms, March turned out to be a letdown for the gaming sector. Mat Piscatella from Circana shared that there were marked drops in console sales in the US when compared to March 2024. Even with strong sales for Assassin’s Creed Shadows, fewer games were bought. However, the ongoing pre-orders for the much-anticipated Switch 2 give some hope for the future.
Revenue Trends
According to Circana’s 2024 report, revenue from the PS5, Xbox, and Switch consoles has seen a clear downturn. Analysts predict that the industry may bounce back in 2025, yet this turnaround hasn’t materialized just yet. Sales for games and consoles are again trailing behind last year’s figures. Overall revenue from video game content, hardware, and accessories has decreased by 6% since March 2024.
Console Sales Declines
The most significant shifts compared to a year ago are in console purchases. Sony’s PS5 remains at the top of the standings but has dropped by 26%. Sales of the Nintendo Switch, the popular handheld console, have plummeted by 37%. Meanwhile, Xbox systems experienced a smaller decline of 9%, although Microsoft has reduced shipments of the Series X in certain areas. Spending on gaming accessories also fell, down by 11% from last March.
Digital Sales Surge
The numbers for cross-platform video games in March aren’t entirely grim. Thanks to the strong performance of Assassin’s Creed Shadows, overall spending was only 6% lower than in March 2024. Monster Hunter: Wilds moved down to third place behind MLB: The Show 25, which didn’t make its debut on Xbox Game Pass this season. As physical media continues to decline in popularity, digital premium game sales enjoyed a notable increase of 12%.
While the Switch 2 might help boost hardware sales, the outlook has grown more complex. High tariffs on imports from China have raised concerns among US gamers regarding console availability and increasing prices. Nintendo opted not to raise the price of the Switch 2, but accessory prices were not spared. On the other hand, Sony has increased the MSRP of the PS5 in several regions while keeping the US market unaffected.
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