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BusinessSpending on video games soars throughout 2020 due to pandemic

Spending on video games soars throughout 2020 due to pandemic

VIDEO games saw one of the largest increases in spending in 2020 with 43% more sales recorded than 2019 new data has revealed.

The increase in spending is believed to be caused by the pandemic as video game purchases soared during the first UK lockdown.

Spending eased as the first lockdown ended but it remained up year for the majority of 2020.

Data from Barclays Games and Esports released reveals sales were 11 per cent higher than the increase in entertainment streaming services music, video and books, 32 per cent and fourteen percent higher than general retail which was 29% higher

The coronavirus pandemic has led to increased revenues during the first UK lockdown when there was an unprecedented increase in consumers spending on in-home entertainments, compared to a 51% decline in out-of-home entertainment spend

The data also revealed that on average customers made more purchases throughout the year, with the average number of transactions per customer rising by 21 per cent.

In addition, there was also a rise in customer base, as the total number of customers spending on video games increased by 20 per cent year-on-year.

While customers spent more in total, the average value per transaction was slightly lower 2% in 2020, pointing towards smaller, more frequent purchases and payments.

David Gowans - Barclays - Business News UK
(Photo provided) David Gowans, Head of the Games and Esports team at Barclays

David Gowans, Head of the Games and Esports team at Barclays, said: “Due to its at home nature, the video games industry has continued to thrive over the last year for large and small developers alike, due to strong demand from consumers.

“Games have certainly provided much needed entertainment for many and helped people stay connected during this difficult time.

“We’re committed to helping both smaller and large games businesses meet their growth ambitions, whether that’s support with funding, or through insights from our specialist team, who are based across the UK.

“The boost in the sector is welcome news for the economy as we look to bounce back from the pandemic, drive job creation and generate regional growth.”

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