Skip to main content
  1. Home
  2. Gaming
  3. News

NPD: Social Gaming Eating into Traditional Game Revenues

By
Image used with permission by copyright holder

A new report from market research firm NPD Group finds that a the popularity of social networking games is eating into traditional computer and video game revenue, as experienced gamers who are pulled into social gaming spend less on gaming overall.

According to the report, a startling 20 percent of the U.S. population over six year old has played a game on a social network in the last three months—that adds up to over 55 million U.S. consumers. Of those players, some 35 percent are new to gaming altogether, reporting that they have never played other online or computer games before playing on social networks. And while those new players tend to be females and older consumers, NPD says the perception that social network games are dominated by female players isn’t true: their report found 47 percent of social network gamers are make, and 53 percent female.

Recommended Videos

However, if 35 percent of social network gamers are new to gaming, that means 65 percent of social network gamers are not new to gaming, and the amount of time they spend on social network game reduces the amount of time—and the amount of money—they spend on other forms of gaming. Gamers in the survey reported spending some 20 percent less on gaming since they started playing social network games.

Related

“Although 35 percent of social network gamers are new to gaming, it’s clear that a lot of existing gamers have been drawn into the social network gaming arena as well,” said NPD industry analyst Anita Frazier, in a statement. “This impacts both the time they spend with other types of gaming, as well as the amount of money they’re spending on gaming. As more players are drawn into these games, the entire games industry is going to feel, and have to adjust to, the impact.”

NPD notes that some 10 percent of social network gamers report having spent real money on social network games, while 11 percent indicated they’re likely to do so in the future.

Editors' Recommendations

Geoff Duncan
Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
Video game industry sales soared in May as coronavirus kept players playing
Call of Duty Modern Warfare

The U.S. video game industry remained strong in May, as both hardware and software sales soared and accessories sales set new records.

American consumers spent $977 million on consoles, video games, and accessories in May, NPD reported on Friday, a 52% year-over-year gain compared to the $642 million consumers spent in May 2019. Console sales were up 56% year-over-year to $235 million and video game sales skyrocketed by 67% to $438 million. Accessories revenue topped $304 million, a 32% surge year-over-year.

Read more
If you’re playing video games, you’re probably eating. And that’s not a good thing
A Pc gamer playing games.

Eating and drinking while playing video games is a time-honored tradition. And while it's surprisingly ubiquitous, according to a new study, it could also have profound implications on your health.

A whopping 80% of gamers around the world said they eat food or drink beverages while they play video games, according to a new study from researcher NewZoo. Men are slightly more likely than women to eat or drink while playing games, and age appears to be a factor: 91% of men and 87% of women in North America between the ages of 21 and 35 are chowing down during a game session.
Mindless eating
So, what are players actually consuming during a game?

Read more
U.S. video game industry sets sales record in 1st quarter as players stay home
Nintendo Switch

The coronavirus pandemic has severely affected various businesses around the world, but there is at least one industry that has benefited from people staying at home to avoid COVID-19 -- video games.

Total consumer spending on video games in the U.S. for the first quarter of the year set a new record of $10.86 billion, which is 9% higher compared with total spending in the same quarter of 2019, according to a report from The NPD Group.

Read more