The gaming industry in the United States faced a challenging year in 2024, with overall consumer spending on video games experiencing a noticeable decline. According to Circana’s latest market report, total spending across hardware, content, and accessories dropped by 8.9% in December, totaling $7.5 billion. This decline contributed to an annual decrease of 1.1%, with total market revenue falling from $59.2 billion in 2023 to $58.7 billion in 2024.
Despite the downward trend, Call of Duty: Black Ops 6 emerged as the year’s biggest success, securing the top spot as the best-selling premium game both in December and for the entire year. This achievement solidified the Call of Duty franchise’s dominance, marking its 16th consecutive year as the best-selling series.
Shifting Consumer Spending Patterns
Spending on game content saw a 5% decline, driven in part by a significant 21% reduction in console-related purchases. Mobile gaming also saw a slight 1% dip, despite Roblox experiencing a surge in consumer spending during December. The platform recorded a 24% increase compared to November, with a dramatic spike on Christmas Day that resulted in nearly $12 million in mobile revenue—35% higher than the previous year’s holiday spending.
While console content spending faltered, there was notable growth in PC, cloud gaming, and non-console virtual reality, which collectively saw a 13% increase. However, this growth was not enough to offset the overall decline.
Hardware Sales in Sharp Decline
The most substantial drop came from the hardware segment, where spending plummeted by 29% compared to the previous year. Xbox and Nintendo consoles bore the brunt of this downturn, with both the Xbox Series and Nintendo Switch witnessing a steep 38% decline in sales. Even Sony’s PlayStation 5 saw an 18% reduction in unit sales. Interestingly, nearly half of PS5 and Xbox Series consoles sold in December lacked a physical disc drive, highlighting the industry’s gradual shift toward digital gaming.
Despite the struggles in hardware, PlayStation continued to make a mark in the accessories category. The PlayStation Portal emerged as the best-selling gaming accessory of the year, while the PS5 DualSense controller retained the top position in terms of total units sold.
A Competitive Year for Top Games
While Black Ops 6 led the annual sales charts, EA Sports College Football 25 secured the second-best-selling position for 2024. Meanwhile, Marvel Rivals achieved impressive engagement, topping monthly active users on Steam and ranking third among the most-played games on PlayStation 5 and Xbox Series.
Another standout performer was Call of Duty: Mobile, which saw a substantial 20% increase in U.S. consumer spending in December, coinciding with the launch of Season 11: Winter War 2.
As the gaming landscape evolves, the industry faces a shift in consumer behavior, with digital formats gaining traction while traditional hardware sales decline. The success of Black Ops 6 and the continued dominance of digital-first platforms like Roblox and Call of Duty: Mobile indicate that the future of gaming may be increasingly driven by online ecosystems and player engagement rather than physical sales.