What just happened? If the rumor mill is to be believed, we're due a fresh round of console wars sooner rather than later. But for now, it seems gamers are taking a breather from snagging new gaming hardware. Analytics firm Circana just dropped their May 2024 US video game sales report, and the numbers for console spending aren't pretty.
Overall video game hardware sales tanked a staggering 40% year-over-year in May, plummeting from $339 million in May 2023 down to just $202 million two months ago. That's a huge decline for PlayStation, Xbox, and Nintendo alike, with all three platform holders seeing double-digit percentage drops in sales compared to the same period last year. But the Nintendo Switch was hit hardest of the bunch, suffering "the most significant" year-over-year dip.
Circana's Mat Piscatella points to the blockbuster launch of Zelda: Tears of the Kingdom in May 2023 as a likely catalyst. That smash-hit open-world adventure sparked a surge in Switch sales last spring as gamers scrambled to get their hands on Nintendo's latest console. With no similar major launches in May 2024, gamers had less incentive to spend on new hardware.
May 2024 U.S. Video Game Market Highlights from Circana - Projected U.S. total spending on video game hardware, content and accessories fell 6% in May 2024 when compared to a year ago, to $4.0 billion. Year-to-date 2024 spending was 2% higher than a year ago, at $22.8 billion. pic.twitter.com/QtKko05BoI
– Mat Piscatella (@MatPiscatella) July 8, 2024
That said, the hardware spending slump comes amid speculation that new console revisions are right around the corner. Microsoft has already officially confirmed refreshed Xbox Series X and S models are in the pipeline. Meanwhile, Sony is also expected to unleash a turbocharged PlayStation 5 Pro before year's end, if the endless stream of leaks and rumors proves accurate. Meanwhile, Nintendo has announced it will take the wraps off a Switch successor console by April 2025.
With next-gen hardware seemingly imminent, it makes sense that gamers might be holding off on upgrading their current-gen systems.
Despite the overall slump in hardware sales, the PlayStation 5 maintained its lead as the top-selling console in May in both unit and dollar sales. The Nintendo Switch held onto second place for unit sales, while the Xbox Series lineup secured the silver medal in dollar sales.
Accessory spending also dipped 8% year-over-year to $148 million. Headset and headphone sales growth of 10% was counterbalanced by a 12% decline in gamepad purchases. Surprisingly, Sony's PlayStation Portal emerged as the best-selling accessory for both May 2024 and the year so far.
On the software side, the May 2024 sales charts were a blast from the past. A PC port sent 2020's Ghost of Tsushima soaring to the top of the dollar sales charts. Paper Mario: The Thousand-Year Door Remake and Call of Duty: Modern Warfare III rounded out the top three. As for the 2024 year-to-date period, Helldivers 2 leads the pack, followed by Call of Duty: Modern Warfare III and Dragon's Dogma.