TCTZF - Nintendo's 'Zelda' pushes videogame sales to healthy rebound in May
2023-07-01 10:03:00 ET
U.S. videogame sales rebounded with a strong year-over-year gain in May, with no small thanks due to a new game from a venerable Nintendo ( OTCPK:NTDOY ) franchise.
Overall sales rose 12% to $4.118B from last May's $3.665B, according to research group Circana. The solid gain came after a couple of months of year-over-year declines -- and on a year-to-date basis, the double-digit gain brought 2023's industry sales back to a flat pace vs. 2022 over the same five-month period.
Hardware sales are still rolling, keeping up a strong pace since some supply-chain concerns eased: They rose 56% year-over-year, to $338M. Accessory sales rose 14%, to $159M.
But game content (which makes up the bulk of the industry's dollar sales) jumped 9%, or by more than $300M, to land at $3.622B for May.
Year-to-date, content sales are still 2% lower than the same period in 2022, while hardware sales are up 23% over that span and accessory sales up 3%.
It was the highest May for videogame hardware spending since 2008, analyst Mat Piscatella noted, adding that double-digit growth for the combined sales of PlayStation 5 ( NYSE: SONY ) and Nintendo Switch ( OTCPK:NTDOY ) made up for declines on other platforms. (PS5 sales actually more than doubled for the month year-over-year, he said -- but Switch was the month's platform leader in dollar and unit terms.)
In accessories, the best-seller in dollar terms was the PlayStation 5 DualSense Edge Wireless Controller Black ( SONY ), while The Legend of Zelda: Tears of the Kingdom Series 1 Amiibo Character Pack ( OTCPK:NTDOY ) sold the most units.
And game content got a big lift from the May debut of The Legenda of Zelda: Tears of the Kingdom, the newest entry in the game series that Nintendo ( OTCPK:NTDOY ) launched in 1986. It opened in the top spot and immediately became the year's No. 2 best-seller, even though Nintendo only supplied physical sales rather than including digital.
Hogwarts Legacy ( NASDAQ: WBD ) jumped back up from the No. 6 spot to serve as May's second-best seller, just ahead of April's leader, Star Wars Jedi: Survivor ( EA ).
The rest of the top 10 held no other debuts: No. 4, Dead Island 2 ( OTCPK:EBCRY ); No. 5, Call of Duty: Modern Warfare II ( ATVI ); No. 6, MLB: The Show 23; No. 7, FIFA 23 ( EA ); No. 8, Mario Kart 8 ( OTCPK:NTDOY ); No. 9, Resident Evil 4 ( OTCPK:CCOEY ); and No. 10, Far Cry 6 ( OTCPK:UBSFY ).
In mobile game spending, trends were down slightly compared to April, according to Sensor Tower, which added that Pokémon Go ( OTCPK:NTDOY ) returned to the top 10 despite its recent price hikes.
The top 10 mobile games by U.S. spending: Candy Crush Saga ( ATVI ), Roblox ( RBLX ), Royal Match, Gardenscapes, Homescapes, Clash of Clans, Jackpot Party - Casino Slots, Honkai: Star Rail, Pokémon Go ( OTCPK:NTDOY ), and Evony.
Related tickers: OTCPK:NTDOY , SONY , NASDAQ: MSFT , HEAR , LOGI , CRSR , EA , ATVI , TTWO , WBD , OTCPK:UBSFY , OTCPK:NCBDY , OTCPK:SQNNY , OTCPK:CCOEY , OTCPK:SGAMY , OTCPK:KONMY , OTCPK:NEXOY , SKLZ , SE , NTES , OTCPK:TCEHY , RBLX . Retail stock: GME .
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Nintendo's 'Zelda' pushes videogame sales to healthy rebound in May