Australian consumer spending on video games was reportedly down 3% year-on-year in 2024, with a new report from IGEA revealing players spent a total of AUD $3.8 billion in the last year. Across traditional retail channels, sales have fallen, with hardware dropping a significant 17%. Full-game software sold at a retail level was also down, by 34%.
As noted by IGEA, strong launches like Helldivers 2, Call of Duty: Black Ops 6, and EA Sports FC 25 drove video game sales across multiple platforms in 2024. PlayStation 5 remains the best-selling console in Australia, followed swiftly by the Nintendo Switch.
Traditional retail video game sales were only partially salvaged by a boost for first-party peripherals, which increased by 14% year-on-year. Per IGEA, this success was driven by the launch of the PlayStation Portal, as well as demand for new PS5 DualSense controller variants.
In the digital sphere, there was a notable 14% drop in full-game sales, although other digital purchases salvaged this sector. Between in-game purchases (up 7%) and subscriptions (up 16%), digital video game sales actually increased 1% year-on-year.
Mobile had the biggest leap in video game sales, jumping by 7% in 2024, likely driven by a rise in interest for mobile gaming, and improved performance for modern phones. Over the last few years, there have been significant performance leaps for mid-range and affordable phones, opening the floodgates for mainstream engagement in mobile gaming.
Australian video game sales reflect a wider economic decline
With traditional retail video game sales down 19% overall, and mobile and digital sales increasing 1% and and 7% respectively, total Australian consumer video game sales were down just 3% overall. It’s worth considering this represents only a slight downturn against a backdrop of dire economic circumstances, worldwide.
Read: State of Play survey warns of NSW game developer exodus
The statistics also reveal changed purchasing behaviour from players, with traditional retail sales falling year-on-year, continuing a trend. Over the last decade, digital has become a formidable sales front, with consumers increasingly turning to online storefronts for game purchases, whether for convenience, or a falling interest in physical media.
With games increasingly being sold only as digital products, even when physical boxes are sold in retail stores, it appears digital sales are becoming normalised. Game subscriptions such as Xbox Game Pass, PlayStation Plus, and Apple Arcade are also on the rise, as players increasingly turn to these services whether to play online with friends, or to offset the costs of full-priced games.
‘In times of economic downturn, consumers often reduce big-ticket spending on things like holidays and larger in-home purchases, to smaller discretionary spending, such as in-game spending and smaller peripheral items,’ IGEA said of these figures and trends. ‘The overall decline in spending reflects the current state of the global economy.’
Despite these statistics, IGEA and data partner Newzoo expects to see 3.3% growth in the period between 2024 and 2027, with Australia ‘expected to outpace the average global growth.’
Also on ScreenHub: State of Play survey warns of NSW game developer exodus
State of Play, an independent board established to provide data-led games industry analysis to the Australian Government, has released a new survey indicating a major crisis brewing for NSW-based game developers. Speaking to developers across the state, the organisation discovered a major lack of funding opportunities and support, which has led many developers (74% surveyed) to consider moving to another state.
For specific reasoning, developers identified not only a lack of funding opportunities (61%), but also a need for a better games industry ecosystem for networking and connection (49%), being able to live closer to talent (20%), and challenges with cost of living pressures (under 5%).
