Video Game Spending Declines 13% in 2012

On February 20, Sony is expected to unveil the new Playstation to the public. If the rumours are true, Sony will be the second major player to allow us a glimpse of what next generation gaming will look like after Nintendo released the Wii U in fall 2012. The third big player, Microsoft, is expected to present a new Xbox later this year, most likely at the Electronic Entertainment Expo (E3) in June.

Sony's unexpected move comes at a difficult time for the gaming industry. Consumer spending on gaming software, hardware and accessories in the United States fell 13 percent in 2012. Hardware and new physical software sales declined 27 and 22 percent, respectively.

Some industry analysts blame the lack of next-generation consoles for the decline, others claim that expensive gaming consoles are a relic of the past. The next generation of consoles will have to compete with smartphones and tablets powerful enough to run sophisticated games, that cost a fraction of new console games. The fact that digital gaming content (including mobile games among others) is the only industry branch that flourished in 2012, speaks volume of the changes the gaming industry is currently undergoing.

The lackluster sales of Nintendo's Wii U add fuel to the latter argument, although it has to be noted that Nintendo's latest consoles are targeted at casual gamers who are less inclined to spend hundreds of dollars on new hardware than the hardcore gaming audience Microsoft and Sony are trying to woo.