“Video game hardware spending in the US plummeted by 40% in May 2024 – Is the Gaming Industry in Crisis?”

Los Angeles, California – Video game hardware sales in the United States experienced a significant decline of 40 percent in May compared to the previous year, according to data released by Circana. The report highlighted a noticeable drop in the sales of popular gaming consoles such as Nintendo Switch, PlayStation 5, and Xbox Series X/S, with Switch registering the most significant decrease.

Despite the overall decline, PlayStation 5 emerged as the top-selling console in both unit sales and dollar amount for the month of May. The console’s unit sales surpassed those of the PlayStation 4 by eight percent. The analysis by industry analyst Mat Piscatella revealed that the downward trend was not limited to hardware sales, as spending on game content and gaming accessories also saw decreases compared to the previous year.

Ghost of Tsushima, the best-selling game in the US for May, made waves with its PC port release, becoming PlayStation’s biggest single-player PC launch in terms of concurrent players. Additionally, Fortnite continued to maintain its popularity, attracting a high number of active users across PlayStation 5 and Xbox Series X/S in May.

Looking ahead, Circana projects a six percent decrease in total spending on video game hardware, content, and accessories in the US for May 2024 compared to the previous year. Piscatella attributed this decline, in part, to the release of The Legend of Zelda: Tears of the Kingdom on the Nintendo Switch in May 2023.

In the near future, major players in the gaming industry, including Nintendo, Sony, and Microsoft, are gearing up to launch new hardware. Microsoft’s reveal of three new Xbox console variants with expanded storage capacity, Sony’s reported plans for a PS5 ‘Pro’ console, and Nintendo’s announcement of the successor to the Switch, dubbed ‘Switch 2,’ all point towards a wave of innovation and upgrades in the gaming market.

With anticipated releases like Legend of Zelda: Echoes of Wisdom, Astro Bot, and Indiana Jones and the Great Circle, gamers can look forward to an exciting lineup of new titles across various platforms in the coming months. These developments underscore the ongoing evolution and competitiveness within the gaming industry, setting the stage for continued growth and innovation.