American gamers are spending $1.78 billion less than in 2021, per consumer report

Mobile games are taking a big hit.

Video game sales in the United States have fallen $1.78 billion in Q2 2022 compared to last year, according to a report released by The NPD Group. That figure represents a 13 percent decline in the sales of video game products as the pandemic growth in the sector begins to show significant signs of slowing down.

The only category of gaming that showed an increase in sales is the non-mobile subscription model. Mobile video game sales contributed the most to the overall decline. The reason for the slow down in sales is likely a result of people returning to work and in-person events as people start to return to a new normal post-pandemic.

NPD also cites an increase in prices for everyday necessities as a reason for the slowdown in video game product sales.

“Higher prices in everyday spending categories such as food and gas, the return of experiential spending such as travel and attending live events, a lighter release slate of new games, and continued new generation console hardware supply constraints were all likely contributors to the decline seen in the second quarter,” The NPD Group games industry analyst Mat Piscatella said.

Content spending in the U.S. still reached $10.97 billion in spending, which is a 13 percent decrease compared to Q2 2021, but subscription content continues to post positive gains. Hardware and accessories took a bit of a hit as well. Hardware sales were only down one percent, but accessories sales were down 11 percent.

Although the numbers are down compared to last year, consumer spending on video games in the U.S. is still trending above pre-pandemic levels, but the current economy’s uncertainty and quickly changing conditions may impact the market in unexpected ways in the coming months.