The Interactive Games & Entertainment Association (IGEA) reported that Australian consumer spending on video games and gaming hardware will experience steady growth of 5% in 2023, with A$4.4 billion spent across digital games, traditional retail and mobile.
According to IGEA's latest report, digital sales account for the majority of purchases, with AUD1.67 billion spent on this segment, up 11% from 2022. Mobile gaming spending follows closely behind with AUD1.58 billion. Traditional retail remains popular with AUD1.15 billion spent, but it's worth noting that retail spending is down 0.5% year-on-year.
The majority of reported spending involved in-game purchases (AU$823.5m), full games (AU$517m) and subscriptions (AU$329.5m), with hardware, full game software and first-party peripherals (such as headsets and controllers) making up the remainder of consumer spending.
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Australian video game spending remains stable
The stability revealed in the IGEA report is significant: during an economically challenging year, video game and hardware sales have remained stable. Sales continue to grow slightly despite the rising cost of living and other financial crises.
“Australian consumer sales data this year shows that video games are here to stay,” IGEA CEO Ron Currie said, “with digital sales up 11% and traditional brick-and-mortar sales up 0.5%, collectively increasing sales by nearly $200 million over 2022…Australians love video games, whether it's for socializing with family and friends, relaxing or being entertained.”
As Curry noted, subscription services signal a continuing passion for gaming with family and friends, but “with over $900 million spent on full game software, traditional and online retailers remain the foundation for distribution to an ever-growing consumer base.”
Despite the economic pressures facing businesses and individuals, sales of video games and gaming hardware are expected to remain stable for the foreseeable future. Tough times always demand catharsis and escapism, and video games certainly provide that, even if it means stretching your budget.
The full Australian Consumer Video Games 2023 Snapshot can be found on the IGEA website.
