The Nintendo Switch And PlayStation 5 Dominated 2022

Spending on video game software, hardware and accessories was down 5% in 2022 over 2021 according to the NPD group, totaling $56.6 billion in the US. This was despite growth in hardware and subscription spending.

According to industry analyst Mat Piscatella, “Factors impacting 2022 spending included continued supply constraints of console hardware, a relatively light slate of new premium releases, and macroeconomic conditions.”

2022 saw stiff competition for console sales, with the Nintendo Switch selling the most units and the PlayStation 5 topping dollar sales for the year. The Xbox Series X|S came in third in both units and dollar sales for the year.

These are not surprising numbers, as the Nintendo Switch has led unit sales for years now despite the console falling behind the competition in terms of raw horsepower and graphics capabilities. The lower price-tag and handheld-hybrid nature of the console make it appealing to households with kids. Whereas a family might only purchase one PS5, they could easily purchase a separate Switch for multiple members of the household.

Nintendo’s family-friendly game lineup also makes it appealing to a wider range of age groups.

The PS5, meanwhile, has been the most sought-after console since its release in November, 2020 but supply has been an issue since launch until very recently thanks to the COVID-19 pandemic’s supply chain impact and high demand. It will be interesting to see how these consoles perform in 2023 as supply constraints become a non-factor and the Nintendo Switch starts to fall even further behind in terms of performance compared to PlayStation and Xbox.

Check out the best-selling video games of 2022 right here.