Australians subscribe to video game growth
8 June, 2023 – Australians went all-in last year on video games with $4.21 billion spent across hardware, software, and peripherals, according to consumer sales data released today by IGEA. Digital purchases improved by 6%, reaching $1.5 billion, with video game subscriptions showing a substantial 55% increase.
“The Australian video game market thrived in 2022, driven by a diverse range of new software releases and improved hardware availability compared to the year prior. The retail software market experienced a healthy growth of +10% in value spend, but the significant takeaway was the increase in overall spending in 2022 compared to 2021, attributed to a substantial portion of software sales being driven by new releases rather than the more typical back-catalogue titles.” said Aidan Sakiris, Asia Pacific Regional Manager at Sparkers.
“Hardware availability improved, with PlayStation 5 and Xbox Series seeing +17% and +15% unit growth respectively, while Nintendo Switch remained the best-selling Australian hardware platform in unit sales,” continued Sakiris.
Aussies spent $1.15 billion dollars through traditional retail outlets – including a 7% jump in spending on physical hardware and software purchases. Given the stabilisation of retail supply chains, Australians had more access to the newest consoles than in previous years. Combined with the new games on offer, this led to a boom in console sales through retail stores.
Australia’s mobile gaming habits remained stable, with $1.56 billion spent on games played via smartphone, an increase of 3% from the previous year.
Tom Wijman, Lead Analyst Games Newzoo highlighted “Australian players’ spending habits outperformed the global average, which in fact saw a yearly spending decline. Australian players’ appetite for multi-game subscriptions is also clear: growth in this category outpaced the global average by nearly +5%.”
“It’s great to see consistent performance of sales across games channels. Australia’s traditional games retailers continue to perform well, increasing revenue by 7% against 2021. Bricks-and-mortar retailers continue to play an important role in game distribution and are a strong indicator of the industry’s stability. Australians love to play video games; they use them for entertainment, to have fun, to relax and connect with friends and family,” said Ron Curry, CEO of IGEA. “With such a strong retail and distribution base and a population that loves playing games, it is no surprise that sales have exceeded $4 billion. The added benefit is that the consumer demand for games in Australia and internationally allows Australia to build a substantial video game development industry.”
IGEA will provide its latest consumer research on Australians playing video games, why they play them, and how they play. You can find previous reports here.
To download the accompanying infographic, click PDF or Jpeg
ENDS
Media spokespeople available:
- Ron Curry, CEO of IGEA
- Aidan Sakiris, Asia Pacific Regional Manager of Sparkers
- Tom Wijman, Lead Analyst Games, Newzoo
Please contact igea@doublejump.com.au for more information.
About IGEA
IGEA (Interactive Games & Entertainment Association) is the peak industry association representing the voice of Australian and New Zealand companies in the computer and video games industry. IGEA supports the games industry’s business and public policy interests through advocacy, research and education programs. For more information, please visit www.igea.net
Notes about the Newzoo research
The impact of changes in the AUD-to-USD exchange rate is also worth pointing out. Newzoo estimates the games market size in US$ value, which means we convert local spending into US$. Newzoo does this by taking the US$ exchange rate at the end of each quarter. The value of the US$ compared to other currencies rose rapidly during 2022, which has two consequences: the US$ value of companies that earn the lion’s share of their revenues in non-U.S. markets is lower than it would have been using the constant currency approach as is the revenue recognized by U.S.-based companies for revenues earned in regions outside the U.S.
AUD amounts quoted in this press release and infographic were derived from the average of the AUD-to-USD exchange rate for 2022.