U.S. consumer spending on video games surged to $6.6 billion in the first half of 2020, a total comparable to full-year sales levels seen across the previous decade and second only to 2010’s annual figure of $7 billion.
Spending jump and year-over-year gains
Research from NPD found that spending on games in the first six months of 2020 rose 19% compared with the same period in 2019. Month-to-month comparisons also showed strong growth: spending in June 2020 was 26% higher than in June 2019.
Pandemic correlation and consumer behavior
The report does not directly attribute the increase to the Covid-19 pandemic, but the connection is apparent: with restrictions on leaving home, many consumers have turned to at-home entertainment. Video games can offer extended hours of diversion while people remain isolated.
Implications for console makers
The spending surge may be encouraging for Sony and Microsoft as they prepare to launch the PlayStation 5 and Xbox Series X later in 2020. Industry observers had expressed concern that economic pressures from the pandemic could dampen demand for new consoles, but the sales indicators suggest consumers might prioritize entertainment spending despite tighter budgets.
Reflecting that confidence, reports emerged this week indicating Sony increased PlayStation 5 production by 50%, a move that would signal strong expected demand.
Broader entertainment trends
The pattern echoes developments at other entertainment companies. Streaming service Netflix reported substantial growth in the first half of 2020, adding 26 million subscribers—roughly matching its total subscriber growth for all of 2019—driven in part by hundreds of millions of people spending more time at home.
