WASHINGTON – January 22, 2019 – The U.S. video game industry generated a record $43.4 billion in revenue in 2018, up 18 percent from 2017, according to new data released today by the Entertainment Software Association (ESA) and The NPD Group.
“The impressive economic growth of the industry announced today parallels the growth of the industry in mainstream American culture,” said acting ESA President and CEO Stanley Pierre-Louis. “Across the nation, we count people of all backgrounds and stages of life among our most passionate video game players and fans. Interactive entertainment stands today as the most influential form of entertainment in America.”
“2018 was another record setting year for the U.S. video game industry as consumer spending jumped 18 percent to over $43 billion. Whether it was playing on the go on a mobile device or at home on a PC or console, consumers of all ages and interests found compelling content that delighted in 2018,” said Mat Piscatella, video games industry analyst, The NPD Group. “Console, PC, and mobile platforms all saw significant growth, while developing portions of the market like subscription and streaming services gave us a peek into a future full of possibilities for the industry and gamers.”
Both hardware revenue, which includes peripherals, and software revenue across all platforms (console, PC, portable, and mobile), from physical and digital sales, including in-game purchases and subscriptions, experienced record growth in 2018.
|U.S. Video Game Industry Revenue||2018||2017||Growth Percentage|
|Hardware, including peripherals||$7.5 billion||$6.5 billion||15%|
|Software, including in-game purchases and subscriptions||$35.8 billion||$30.4 billion||18%|
|Total:||$43.4 billion||$36.9 billion||18%|
Source: The NPD Group, Sensor Tower
There are 150 million Americans who play video games, making the U.S. video game industry one of the nation’s fastest-growing economic sectors. The industry provides more than 220,000 jobs in communities across all 50 states, and more than 500 colleges and universities across 46 states offer programs or degrees related to video games. To see the full geographic diversity of the industry, visit www.areweinyourstate.org.
Mobile spend data, which includes paid downloads and in-game purchases for mobile and tablet devices through Apple’s App Store and Google Play, was collected from Sensor Tower.
About The ESA
The ESA offers a wide range of services to interactive entertainment software companies, including conducting business and consumer research; providing legal and policy analysis and advocacy on First Amendment, intellectual property, and technology/e-commerce issues; managing a global content protection program; owning and operating E3; and representing video game industry interests in federal and state government relations. For more information, visit the ESA’s website or follow the ESA on Twitter @theESA.
About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup @npd_entertain.
About Sensor Tower
Sensor Tower is the leading provider of market intelligence and insights for the global app economy. Founded in 2013 and based in San Francisco, CA, Sensor Tower provides enterprise-level data on mobile apps and publishers through its Store Intelligence, Ad Intelligence, and Usage Intelligence platforms, which offer download, revenue, share of voice, and engagement metrics at unparalleled accuracy for the world’s most important markets. Learn more at sensortower.com and follow us on Twitter @sensortower.